Browse our Research Library: Constantinos C. Markides and Daniel Oyon

In this article Constantinos C. Markides and Daniel Oyon talk about companies operating two business models in the same industry as a response to disruptive business models.  No defined process exists allowing established companies to deal with disruptive business threats, but creating a separate business model is a common tactic.  To increase the probability of success the established business must first ask and answer the five questions described in this article.  If creating a second business is necessary, which is not always the case, than the subsidiary should be separated enough so the parent does not influence potentially cannibalizing decisions and allow them to make their own decisions, but together enough so synergies between the two can still be utilized.