What Qualcomm needs to realize is that any company that is seeking growth needs more profit.
These display companies also need the same growth and may relinquish their position in the mobile device display to seek better margins upstream in the market. As QMT, as a business unit, grows in size, they too will need bigger sales to seek further growth. This is the backbone of the Innovator’s dilemma.
As seen in the Microsoft Kinect case as aforementioned, Qualcomm should explore the possibilities of their new display technologies and not only limit it to mobile phone display.
Qualcomm can explore the possibility of licensing the technology for use by other companies with other brilliant engineers who may come up with other devices or applications that Mirasol can be useful for.
Qualcomm should also capitalize on Mirasol’s ‘environmentally friendly’ characteristic. Using less power enables end users to optimize on the use of their mobile devices. By being power efficient, end users charge their devices less resulting in the reduction of CO2 emission from frequent charge cycles. This can not only be used as a marketing strategy, showing why Mirasol is superior to other displays but it also serves as a way to reduce the company’s carbon footprint and promotes the company’s positive Corporate Social Responsibility.
The worst thing for Qualcomm is to suffer the same fate as other companies that were overthrown by a disruptive technology. Companies that have significant market share tend to become satisfied with their position and when a disruptive technology presents itself the companies say ‘not me’. Qualcomm should focus on the downstream value network, initially disrupting that of the incumbents while strengthening and thus retaining their own. Once the disruption of incumbents is successful, Qualcomm can then proceed to acquire any new
47
competing companies and avoid any attempt of being displaced thus avoiding ‘the innovator’s dilemma’ and remain the dominant company in the industry.
Qualcomm needs to be in tune with the ever changing world of technology in various aspects.
This does not only apply for the Mirasol panels, their newest product line, but also in the core business of their CDMA technology. The world is never still, and change IS inevitable.
48
References:
Abernathy, W.J, & Clark, K.B. (1985), “Mapping the Winds of Creative Destruction,” Research Policy, 14:3-22
Afuah, A. and Tucci, C.L. (2001), "Internet business models and strategies: Text and cases,"
New York: Mcgraw-Hill
Afuah, A. (2004), "Business models: A strategic management approach," New York:
Irwin/Mcgraw-hill
Amit, R. and Zott, C. (2001), "Value creation in e-business," Strategic Management Journal, 22, pp. 493-520.
Apple Inc. 2011, Apple-The Story Behind Apple’s Environmental Footprint, http://www.apple.com/environment/#product
Applegate, L. M., (2000), "E-business models: Making sense of the internet business landscape", in G Dickson and G. DeSanctis (Eds.), "Information technology and future enterprise:
New models for managers," Englewood Cliffs, NJ: Prentice-Hall, pp.49-101
Bloomberg L.P. 2011, Microsoft's Ambivalence About Kinect Hackers, January 13th, 2011, http://www.businessweek.com/magazine/content/11_04/b4212028870272.htm
Brousseau, E., and Penard, T. (2006), "The economics of digital business models: A framework for analyzing the economics of platforms," Review of network Economics, 6(20, pp. 81-110
Chandy, R., and Tellis, G., (1998), “Organizing for radical product Innovation: The Overlooked Role of Willingness to Cannibalize,” Journal of Marketing Research, 34 (November), 474-87.
Chesbrough H. (2006), “Open Business Models: How to Thrive in the New Innovation,”
Landscape, Harvard Business School Press.
Chesbrough H.and Rosenbloom R.S (2002), “The role of the business model in capturing value from innovation: evidence from Xerox Corporation’s Technology spin-off companies,”
Industrial and Corporate Change, Volume 11, Number 3, pp 529-555.
Christensen, C.M. (1997), “The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail,” Boston, MA Harvard Business School Press.
49
Christensen, C.M. and Raynor, M.E. (2003), “The Innovator’s Solution: Creating and Sustaining Successful Growth,” Boston, MA: Harvard Business School Press.
Clark K.B & Wheelwright, S. (1993), “Managing New Product and Process Development,” New York: Free Press
Cooper, A. C., and Schendel, D., (1986), “Strategic response to technological threats,” Business Horizons, 19: 61-69.
Daft, R. L., (1982), “Bureaucratic vs. non-bureaucratic structure and progress of innovation and change,” In Samuel B. Bacharach (ed.), Research in the Sociology of Organizations, 1:
129-166, Greenwich, CT: JAI Press.
Dashhacks Inc. 2011, NAVI-Using Kinect To Aid The Visually Impaired Navigate Indoor Environments | Kinect Hack, March 15th 2011, http://kinect.dashhacks.com/kinect- news/2011/03/15/navi-using-kinect-aid-visually-impaired-navigate-indoor-environments Davenport T. (1993), “Process Innovation: Reengineering Work through Information
Technology,” Harvard Business Press, Boston.
Dess, G.G., and Beard, D., (1984), “Dimensions of organizational task environments,”
Administrative Science Quarterly, 29: 52-73.
Dewar, R. D., and Dutton, J. E., (1986), “The adoption of radical incremental innovations: An empirical analysis,” Management Science, 32: 1422-1433.
Dictionary.com, LLC (2011), Technology | Define technology at Dictionary.com, http://dictionary.reference.com/browse/technology
Dubosson-Torbay, M., Osterwalder,A., and Pigneur, Y. (2002), "E-business model design, classification and measurements," Thunderbird International Business Review, 44(1), pp.
5-23
Ettlie, J. E., Bridges, W. P., and O’Keefe, R. D., (1984), “Organizational strategy and structural differences for radical vs incremental innovation,” Management Science, 30: 682-695.
Freeman, C. & Soete, L., (1997), “The Economics of Industrial Innovation,” Cambridge, MA:
MIT Press.
Gavetti, G., (2005a.) “Cognition and Hierarchy: rethinking the microfoundations of capabilities’
development,” Organization Science 16 (6), 599-617.
Gavetti, G., (2005b.) “Kodak: Interview with Dr. George Fisher (DVD),” HBS Publishing Gavetti, G., Henderson, R., Giorgi, S., (2004), “Kodak (A),” HBS Publishing
50
Gousev, E. (2010), MEMS/NEMS Innovations: Disruptive Display Technology Inspired by Nature Presentation, Qualcomm Means Technologies Inc.
Guinness World Records 2011, Kinect Confirmed As Fastest-Selling Consumer Electronics Device, http://community.guinnessworldrecords.com/_Kinect-Confirmed-As-Fastest-Selling-Consumer-Electronics-Device/blog/3376939/7691.html
Henderson, R. M., and Clark, K. B., (1990), “Architectural Innovation: The reconfiguration of Existing Product Technologies and the Failure of Established Firms,” Administrative Science Quarterly, 35 (1990): 9-30.
Kulkarni, R., (2006), “Disruptive Technology,” Computing and Control Engineering Journal vol.
17, no.1, Feb.-Mar., pp. 32-35.
Lucas H. C. & Goh J. M. (2009), “Disruptive technology: How Kodak missed the digital photography revolution.” Journal of Strategic Information Systems
Microsoft Corporation, 2011, Academics, Enthusiasts to Get Kinect SDK, February 21, 2011, http://research.microsoft.com/en-us/news/features/kinectforwindowssdk-022111.aspx Morris, M., Schindehutte, M., and Allen, J. (2005) "The entrepreneur's business model: Toward a
unified perspective," Journal of Business Research, 58, pp.726-35
Osterwalder, A., (2004), "The business model ontology- A proposition in a design science approach," Dissertation 173, University of Laussanne, Switzerland
Osterwalder,A., Pigneur, Y., and Tucci, C. L., (2005), "Clarifying business models: Origins, present and future of the concept," Communications of the Association of Information Science (CAIS), 16, pp. 1-25
Patki, A.A., (2006), “Managing Disruptive Technologies,” Engineering Management, June, vol 16., Issue 3, pp. 18-19.
PSFK LLC, GESTURE-BASED WEB BROWSING USING MICROSOFT KINECT, January 20, 2011, http://www.psfk.com/2011/01/gesture-based-web-browsing-using-microsoft-kinect.html
Qualcomm Inc. (2011), Business Model |Investor Relations, assessable at http://www.
qualcomm.com/investor/business-model
QUALCOMM Incorporated, 2011, Corporate Structure | Investor Relations | Qualcomm, http://www.qualcomm.com/investor/corporate-structure
Qualcomm Means Technologies, Inc. (2010), Value Proposition of Mirasol Displays, assessable at http://www.qualcomm.com/documents/mirasol-displays-value-proposition
51
Ravasi, D., Schultz, D.,(2006). “Responding to organizational identity threats: exploring the role of organizational culture.” Academy of Management Journal, Vol. 49, NO. 3, 433-456.
Rothermel, F.T. (2001), “Incumbent’s advantage through exploiting complementary assets via interfirm cooperation,” Strategic Management Journal, 22:687-699.
Rothwell, R. (1986), “The rule of small firms in the emergence of new technologies,” In Christopher Freeman (ed.), Design, Innovation and Long Cycles in Economic Development: 231-248. London: Francis Pinter.
Sandstrom C.G. (2010) “A revised perspective on Disruptive Innovation- Exploring Value, Networks and Business Models” Thesis for the Degree of Doctor of Philosophy Schafer, S. M., Smith, H. J., and Linder, J. (2005), "The power of business models," Business
Horizons, 48, pp.199-207
Seelos, C., and Mair, J. (2007), " Profitable business models and market creation in the context of deep poverty: A strategic view," Academy of Management Perspectives, 21, pp. 49-63 Shein, Edgar (1992), “Organizational Culture and Leadership: A Dynamic View,” San Francisco,
CA: Jossey-Bass. pp. 9.
Stake, R. (1995), “The art of case research,” Newbury Park, CA: Sage Publications.
Stewart, D.W., and Zhao, Q. (2000), "Internet marketing, business models and public policy,"
Journal of public policy and marketing, 19, pp. 287-296
Teece D.J., (1992), “Competition, cooperation, and innovation: Organizational arrangements for regimes of rapid technological progress,” Journal of Economic Behavior and
Organization, 18(1):1-25.
Teece, D.J. (2010), "Business models, business strategy, and innovation," Long Range Planning, 43, pp. 172-194
Timmers, P.(1998), "Business models for electronic markets," Electronic Markets, 8(2), pp. 3-8Tushman, M. L., and Anderson, P., (1986), “Technological discontinuities and organizational environments,” Administrative Science Quarterly, 31: 439-465.
Tripsas, M. (1997), ”Unraveling the Process of Creative Destruction: Complementary Assets and Incumbent Survival in the Typesetter Industry,” Strategic Management Journal, 18:119-142.Tushman, M.L. and O’Reilly, C.A. III (2002), “Winning through Innovation: A Practical Guide to Leading Organizational Change and Renewal,” Boston, MA: Harvard Business Press.
52
Walsh, S. & Kirchhoff, B., (2000),“Differentiating Market Strategies for Disruptive
Technologies,” IEEE Transactions on Engineering Management, Nov. 2000, vol. 49, no.4.
Weill, P., and Vitale, M.R., (2001), "Place to space: Migrating toe-business models," Boston, MA: Harvard Business School Press
Yin, R. (1993), “Applications of case study research,” Newbury Park, CA: Sage Publishing.
Yu, D. and Hang, C.C. (2008), “Creating candidate technologies for disruptive innovation: a case study approach,” Proceedings of IEEE IMIT 2008, 21-24 September, Thaland, pp. 65-70.
Zott C, Amit R., Massa L. (2010) “The Business Model: Theoretical Roots, Recent Developments, and Future Research” Working Paper, University of Navarra