Company M has launched an Operating system for a personal computer in 1990. During the time, Company M hold 90 percent of the market share. Their long-term relationship with the Original Equipment Manufacturer (OEM) creates terrific barriers for the newcomers. The demand for the microprocessor of Company I would increase whenever Company M introduces a new operating system. Company M remains highly profitable. The strategy of Company M has killed innovation. Hence, they failed to commercialize the category-defining products. For past years, Company G is the leading search engine and online advertising company. This is due to the top-down strategy of Company M, which killed innovation. Many of the products of Company M failed against the products of Company G and Company A due to their strategy. To determine: Why it is difficult for CEOs to balance between exploitation and exploration.

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Chapter MC, Problem 4.3DQ

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Company M has launched an Operating system for a personal computer in 1990. During the time, Company M hold 90 percent of the market share. Their long-term relationship with the Original Equipment Manufacturer (OEM) creates terrific barriers for the newcomers. The demand for the microprocessor of Company I would increase whenever Company M introduces a new operating system. Company M remains highly profitable. The strategy of Company M has killed innovation. Hence, they failed to commercialize the category-defining products.

For past years, Company G is the leading search engine and online advertising company. This is due to the top-down strategy of Company M, which killed innovation. Many of the products of Company M failed against the products of Company G and Company A due to their strategy.

To determine: Why it is difficult for CEOs to balance between exploitation and exploration.

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