MNGT-E3004 - Sustainable Entrepreneurship, Markets, and Systems Change, Lecture, 24.10.2022-30.11.2022
This course space end date is set to 30.11.2022 Search Courses: MNGT-E3004
Session #4 - Systems change: The role of entrepreneurship
Systems change: The role of entrepreneurship
In session #3, we took a bit of a detour from entrepreneurship and looked at corporations, and their role in systems change. One of the key takeaways from that session was that dominant corporations have limited incentive to adjust their behaviour to address sustainability issues. They have core businesses to protect, after all. It is only after change starts happening in an industry that they are likely to forcefully attempt to change their own activities.
So where then does this incentive come from? Well, entrepreneurship; by less dominant companies, and especially startups, bringing new ideas to the forefront, and showing that there is a demand for them. Seeing new market opportunities, dominant corporations will naturally adjust.
From a sustainability standpoint, this is excellent! BUT, it does create a challenge for entrepreneurs. Notably, what is to stop the entrepreneur from having their business competed away? What is to stop the entrepreneurial venture from going out a business once a bigger, better resourced, corporation comes in and copies their innovation?
Sure, some sustainable innovations can be protected via patents, but many cannot.
To explore this topic in more depth, we will look at the case of plant-based milks (PBMs), and especially Oatly. As an analytical framework, we will use Porter's Five Forces, which is perhaps the most widespread tool for strategic analysis. (Or at least is second behind SWOT.)
I have included a reading on Porter's Five Forces, but this is entirely optional. Those of you coming from a business background will be quite familiar with it, so no need to read this article, unless you want to.Utvärderingsmetod: Högsta betyg