BRANCHING TO ESCAPE THE INCUMBENT CURSE: THE ROLE OF CORE CAPABILITIES IN FUJIFILM

To overcome stagnation during industry shifts, incumbents deploy branching strategies–deliberate expansion into new sectors while leveraging core competencies. By examining Fujifilm’s branching strategy over 40 years, this study shows how the company reconfigured its expertise to explore its traditional markets and enter new technological domains. This study uses a four-quadrant positioning chart that combines market experience with technological progression to identify Fujifilm’s core competencies during its transformation process. This research draws on secondary data, including annual reports, patent filings, and industry publications, to trace the company’s strategic evolution. Our research highlights branching strategy as a viable approach for leveraging existing capabilities, navigating market barriers, and avoiding challenges that typically hinder incumbents.