Entrenched Player's Dilemma
Encyclopedia
The entrenched player's dilemma is a concept featured in Wikinomics
. It is the choice faced by existing businesses in a changing marketplace. To embrace new ideas fully, they must abandon their current revenue streams.
Don Tapscott and Anthony D. Williams explain the concept:
Wikinomics
Wikinomics: How Mass Collaboration Changes Everything is a book by Don Tapscott and Anthony D. Williams, first published in December 2006. It explores how some companies in the early 21st century have used mass collaboration and open-source technology, such as wikis, to be successful...
. It is the choice faced by existing businesses in a changing marketplace. To embrace new ideas fully, they must abandon their current revenue streams.
Don Tapscott and Anthony D. Williams explain the concept:
"The problem with mature companies is that the very commercial success of their products increases their dependency on them. Making radical changes in the product's capabilities, underlying architecture or associated business models could cannibalize sales or lead to costly realignments of strategy and business infrastructure. It's as though popular and widely adopted products become ossified, hardened by the inherent incentives to build on their own success. The result is that entrenched industry players are generally not motivated to develop or deploy disruptive technologies."