ACCA Strategic Professional · Strategic Business Leader · Strategic choices
Halvern Mobility, a car maker, partners with a software firm and a battery supplier to offer a subscription mobility service. Its CEO says the competitive unit is no longer the single company but the network, with value created jointly and the partners' interests shaping what each does. Which concept does this view best match?
This is a business ecosystem view, where interdependent organisations co-create and share value through a network. The focus shifts from competing as a single firm to coordinating partners, which neither five forces nor Ansoff growth vectors capture.
- APorter's five forces analysis of industry rivalry
- BA business ecosystem in which firms co-create valueCorrect
- CAnsoff's product development growth vector
- DDisruptive innovation entering at the low end of the market
Explanation
Value created jointly by interdependent partners across firm boundaries is the business ecosystem idea. Five forces examines industry structure and ecosystem members are not simply competitors or suppliers. Product development is about new products to existing markets, and nothing suggests low-end entry as in disruptive innovation.
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