Question

a. What is it? b. What does it mean? C. How would you use it in innovation/entrepreneurship? Key Collaborator Options Single Multiple Strong Low Limited Value Capture Potential (Need Partner) Value Capture Potential obal Potential to be Imitated High No Value Capture Potential Niche Value Capture Potential

Answer 1

The matrix shows strategic decision/intent that should handle different combinations of core capability and partnership for any firm.

The capabilities are often categorized as imitable or inimitable. On the other hand partnerships or collaborations can be with single or multiple angles. This is where a firm needs to understand their value creation/capture potential.

If a firm has low imitable capability (others cannot copy their model easily), and has only single collaboration then they need to increase their collaboration so that they can extract maximum value. For example, consider an organization like Google who has the most powerful search engine on the planet. Their capability is pretty much inimitable at this point. Now, if they want to maximize on their value, they should partner with various firms and offer them their service. These other firms will have almost no option but to partner with them. This is why we see so many Android devices in the market and so many companies using Google’s various platforms.

Same way if a firm’s capability is imitable and there will be people wanting to copy their capability then they need to choose multiple collaborators. If they choose single collaboration then they will likely create no value. Consider the examples of fashion designers. If they only make their dresses for a single actor/singer/celebrity then they will likely not survive or create any opportunity in the market. Fashion is easily copied so the potential for imitation is high. However, if they partner with various celebrities then they could likely participate in various fashion shows, events, etc. and expand their business. However, they will be better suited to follow a niche. This is why it points to niche value creation/capture.

When we think about innovation/entrepreneurship, we think about creating value in the market. We think about capturing that to fuel the innovation/business further. This is where this matrix can be of guidance. Depending on our internal capabilities, we may want to seek collaboration in the industry from single or multiple fronts. So this matrix can help us make that strategic decision.