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    Boiled Frog Phenomenon in Sony and Nabisco

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    Search the Internet to find the term "boiled frog" phenomenon. What is the "boiled frog" phenomenon? How does it apply to business and, particularly, strategic management? Do some research to find a business example of a situation where this has occurred. What could the business have done to avoid the effects of the phenomenon?

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    The boiled frog phenomenon, according to Stubblefield (2010), happens when management falls asleep, it is liken to the boiled frog phenomenon where the frog becomes acclimated to the water temperature and slowly goes to sleep and eventually dies as the heat is gradually increased, but had the frog been dropped into boiling water at the onset its survival instincts would have been triggered and he would have jumped out of the pot of water rather than die.

    Companies with "boiled frog" syndrome will not even know that they are experiencing that phenomenon. Those companies will be unable to innovate, compete, and come up with new products and services. They become callous to the events and challenges happening in the environment. If the situation is not remedied, either they fade out in the business or are absorbed by big businesses.

    Example of Boiled Frog Companies (PDI, 2001):
    1.) Sony's Betamax vs. JVC's VHS
    Sony was product leader; however, their Beta format was proprietary. JVC on the other hand freely licensed its VHS ...

    Solution Summary

    The discussion shows how a boiled frog phenomenon happened in organizations like Sony's Betamax and Nabisco's Oreo. It specifies also how to prevent the boiled frog phenomenon from happening.