This chapter explores the challenges companies face in innovating and adopting new products, using Faber Castell's decision to expand into the cosmetics business and double down on old technology as an example. It discusses the strategy of becoming a companion for life and the company's success in the recent coloring trend, while also addressing the difficulties of deciding when to adopt new technologies as an incumbent firm.
Pencil-maker Faber-Castell has been in business since 1761, but it is still innovating and adopting new technology.
In this episode, Harvard Business School associate professor Ryan Raffaelli discusses his case, “Faber-Castell.” He explains how the company balances stewardship of its brand with innovation and evolution, and how leaders decide when—and when not to—adopt new technologies. Plus, he breaks down Faber-Castell’s “generational” approach to formulating strategy to sustain their business for the longer term.
Key episode topics include: strategy, product development, innovation, family businesses.
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· Listen to the original HBR Cold Call episode: Faber-Castell Doubles Down on the Pencil (2017)
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