Page 288 - The Design Thinking Playbook

Many companies use one or more strategies to respond to these challenges, which we describe. It is advis-
able, though, to address the issue not only reactively and defensively but, instead, with a proactive stance.

(1) Blocking strategy
We attempt to prevent or slow down the disruption at all costs, such as by means of patent claims or the (7) Exit strategy
announcement of copyright infringements, putting up legal hurdles, and using other regulatory barriers. We get out of the business and return the capital to the investors.
Ideally this is done by selling the company as long as it still has any
(2) Milking strategy value (e.g., sale of MySpace to News Corp.).
We get the greatest possible value out of vulnerable business units prior to the unavoidable disruption (i.e.,
we milk the business as well as we can). (8) Greenfield strategy
We start a new company in tandem with the old one on a greenfield
(3) Investment strategy site, which is then equipped with the necessary skills, infrastructures,
We invest actively in the threat. This includes investments in “disruptive” technologies, skills, digital and processes for digitization. We milk our old core business in order
processes, and possibly the purchase of companies with these attributes. to build the new venture and switch as soon as we have successfully
initiated the scaling.
(4) Cannibalization strategy
We launch a new product or service that directly competes with the previous business model in order to
build up inherent strengths ourselves for the new business, such as size, market knowledge, brand, access
to capital, and relationships.

(5) Niche strategy
We concentrate on a profitable niche segment of the core market in which disruptions are less likely to
occur (e.g., travel agencies with a focus on business trips or complex travel routes; booksellers and pub-
lishers focusing on the academic niche).

(6) Redefining the core strategy
We build up a new business model from scratch. It might even be in an adjacent sector if such a move
makes optimal use of the existing knowledge and skills (e.g., IBM to consultancy, Fujifilm to cosmetics).

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