How does the transformation of Auto Trader from a print magazine to a digital platform illustrate the importance of entrepreneurial thinking in responding to market disruption?
The whole history of the shift from print magazines to online platforms signifies the relevance of entrepreneurial thinking in challenging times. While rivals in the print media industry resisted the internet, Auto Trader’s leadership understood it added a new dimension to their business and took advantage of this opportunity (Lancefield & Markides, 2020). They exhibited entrepreneurial skills through the development of the internet, innovation, and the revolution of their services, reaching customers with maximum efficiency. The move into digital forced them to operate in an agile, adaptable, and newly architected business, revenue, and operations model. Risk was part of the decision, but the company’s foresight and innovativeness were oriented toward positive benefits, and they made a calculated decision to stay in the lead (Lancefield & Markides, 2020). Entrepreneurial thinking focused on customer-centricity, understanding that people increasingly shopped for cars online, so they created a convenient online platform. Some argue that after Auto Trader moved into the digitalized space, it stayed progressive, developing products in line with society’s growing needs and novel technologies, presenting entrepreneurial thinking as a perpetual undertaking of constant progress (Lancefield & Markides, 2020). Through strategic acceptance of market disruption with entrepreneurial thinking, Auto Trader became a major online car marketplace, guaranteeing its continuity in the digital era and sparking growth.
Why did Kodak’s strategy to improve its core film and printing business fail in the face of digital photography disruption?
Although once dominant, Kodak failed to anticipate the disruptive nature of digital photography. In 1975, Kodak engineer Steven Sasson invented an early digital camera. However, Kodak’s leadership could not recognize digital photography’s capabilities and threat to its film-based business model (Shih, 2016). Kodak initially dismissed digital cameras as a threat, even as their popularity grew in the 1990s. They believed traditional film cameras were superior and did not invest in digital technology, failing to understand that digital photography would match or surpass film quality (Shih, 2016). A crucial mistake was Kodak’s misunderstanding of how digital cameras would shift consumer behavior. Instead of purchasing film rolls and prints, digital allows users to store and share images electronically, eliminating the need for printed copies (Shih, 2016). Kodak’s reluctance to adopt digital photography negatively impacted its position in the digital camera market. While Canon eventually entered the market, competitors like Sony and Nikon were faster to meet consumer needs, making it difficult for Kodak to compete. In light of Kodak’s downfall, businesses must embrace disruptive technologies. To succeed, firms must innovate, diversify products, focus on customer-centricity, remain agile, and develop long-term planning (Shih, 2016). Kodak’s example has forced organizations to incorporate these lessons to survive in a disruptive environment.
Reflect on Ørsted’s transition to renewable energy and the Guardian Media Group’s financial turnaround.
Ørsted’s transition from an oil and gas company to a renewable energy leader is an inspiring example of a business adapting to climate change. By divesting from fossil fuels and investing heavily in offshore wind farms, Ørsted became a global pioneer in green energy. Their partnership with The Guardian allowed them to reach key audiences like policymakers and eco-conscious consumers through innovative multimedia content highlighting the importance of renewables (The Guardian). Meanwhile, The Guardian undertook a financial turnaround, breaking even in 2019 after years of losses. Their reader-funded model, avoiding corporate advertising, allowed them to maintain editorial independence while developing solutions-oriented environmental journalism like the “Power of Green” series with Ørsted (The Guardian). Both organizations demonstrate how legacy companies can transform their business models and messaging to align with sustainability imperatives in the face of the climate crisis.
How do these cases show the role of a compelling, positive vision for change in successful transformation efforts?
Successful change management is evident in the divergent fates of Auto Trader, Kodak, Ørsted, and The Guardian, with the key lesson being that an imperative, powerful, appealing vision is the primary driver (Lancefield & Markides, 2020). The digital way adopted by Auto Trader highlighted the vision powering flexibility and customer orientation (Lancefield & Markides, 2020). The ostrich-like approach to digital photography lends itself to a no-no-visionary, donning a badge of shame-failure (Shih, 2016). Ørsted and The Guardian showed sustainability visions and radical moves for their business models – renewable energy for the former and reader-funded journalism for the latter (The Guardian.). This can be seen in the Internet, the era of digital disruption or climate crisis. All clearly illustrate how the companies that properly organized faced these transformations differently so they could continue being the most desirable products on the market (Lancefield & Markides, 2020; Shih, 2016; The Guardian).
References
Lancefield, Constantinos C. Markides and David. “Creating the Right Kind of Urgency to Bring about Change.” Strategy+Business, 2020, www.strategy-business.com/article/Creating-the-right-kind-of-urgency-to-bring-about-change.
Shih, Willy. “The Real Lessons from Kodak’s Decline.” MIT Sloan Management Review, 20 May 2016, sloanreview.mit.edu/article/the-real-lessons-from-kodaks-decline/.
The Guardian. “Raising Awareness to Ørsted’s Commitment to Renewable Energy |….” Guardian Advertising US, advertising.theguardian.com/us/labs/projects/orsted-power-of-green-case-study. Accessed 29 Mar. 2024.
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