EXPLORE BUSINESS

What is an explore business?

An explore business is one operating in an emerging market, where the basis for competition are unknown and there is uncertainty about customers, market dynamics, potential market size, and other key parameters.

See also: Core Business 

Why is explore business important?

An explore business operates in markets that can present opportunities for business growth well beyond those of mature, core markets. Explore businesses also enable existing firms to learn about disruptive innovations before they become established and pose a threat to the core business.

Are Core and Explore the same as Explore and Exploit?

Yes, core business is an alternate term for exploit. The Explore and Exploit distinction is used by academics to describe the challenges that incumbent organizations have with investing in disruptive innovation. However, exploit is considered by practitioners to be a pejorative term that implies a good/bad or right/wrong distinction between the two business models. This is misleading as any healthy portfolio requires businesses at different stages of maturity.

What is an example of a successful explore business?

Google’s search business is a classic core business with highly established sources of profit and well known competitive dynamics.

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