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Asian Pacific International College Group E Arvind Singh. 201600610 Gurbhej Singh Bhullar 201600611 Jagdeep Singh 201700866 Gurwinder Batth -------------- Literature Review............................................................................................ Business development and growing business is tend to face challenges. This is the world of business growing rapidly and as it grows the difficulties and opportunities demand various solutions. It is very important to recognize the challenge and competition as well as to become capable of overcoming common pitfalls in order to continue for the growth, development and success. Generally a business starts with visions and missions of companies and their employees and as it expands it reaches the global market with its competitors or alone. Established business is normally referred to an incumbent and the businesses that works to gain its share and position by advancement and upgrading the services are referred to challengers in the business. Incumbents are large companies that is powerful and has the ability to gain large share in the market. It is generally referred to leaders in industries. For example, during the end of 2014, Apple would likely be regarded an incumbent based on its sale worldwide (Investopedia, 2018) . But there is a revolution going under the global business. The established incumbent companies are meeting their competitions the new Rapidly developing economies (RDE) based challengers. Challengers are the companies who works with strong motivation in order to obtain the market share of its competitor incumbent by providing large supplies of its products at a competitive price. This fast move start up challengers continues to disrupt incumbent companies. This is not a competition to stay or become a global leader, it is a competition for demands and supplies, suppliers and customers, quest for talent and innovation. But along with threats they bring opportunities as well which is important for both the incumbent and challenger companies to take and act accordingly. Since many challenger companies are entering the market via RDE, they establish their business on low-cost resources and very rapidly growing large markets (Aguiar; et al., 2006). Incumbents does have advantages but they are so potent yet very difficult to apply that a few companies use them. When it is time to face challengers the incumbents already has the information of all types of customer. It is very important to segment product needs not only by geographies and demand but also need-based on customers. This customer need-based segmentation makes it harder for the intruders (challengers) and increase their entry barriers. But since most of the incumbents acts sturdy on their strategies which provided them success before the challengers' intruding they often are very vulnerable to fall by the challengers (Macmillan; and Selden, 2008). Incumbents are the champions of the new innovations or technologies, they can characterize their longevity to different aspects such as original successful ideas of their own which they only brought to the market and exploit them to make profit and stable their financial condition even before the would-be competitors may start preparing to diversify. This stable financial stability will allow them to invest on innovation and development. As time goes by, the incumbents must also upgrade their digital system as it could be one of the important factors that helps the challengers to beat them. For example, due to digital technology advancement, the challenger companies such as Airbnb and Uber has been winning over the hotels and taxi business respectively. This is because the challenger companies reduce their tangible assets and does most of the business using technology which is less costly (Trapp, 2017). The challenger business are actually started with a singular determination to disrupt and already established incumbent or other challengers. They have a razor sharp vision and cannot be easily daunted by their detractors. This is necessary as they are motivated to obtain the share of an already established business which cannot be done timidly. And to beat the incumbent they don't just set up for staying in the market only, instead they emphasize and stay subtle towards their competition against the incumbent business. In other words, they don't agree on copying the incumbent business, they stand out in the market by adding and customizing with their own innovation in order to avoid becoming the incumbents shadow (Scrimgeour, 2015). The challengers mostly exhibits the core characters that happen to played the key role for their development in the global business along with providing them the early access to establish themselves in the business. This gradually allows them to general access of the solid platform of growth. The vision of ambitious owners and founders perfects the performance of these challengers with excellence in pursuit of global leadership by taking up huge risks. They reach out successfully even outside their territory and adapt their model accordingly. In order to win the heated competition between them and the challenger companies always exercise their advantages in order to stay advance even before the incumbent might actually considering them a threat or competition in business. Unless the incumbents are vigilant enough to sustain and enhance their opportunities and advantages against the competitive threat from the challengers, they can easily be beaten (Aguiar et al., 2009). There are various reasons for an incumbent to get beaten by a challenger and one of the most factual one is considered the failure to innovation. And it is a matter of discontent that not only the incumbents might fail to innovate but also to fall behind by not keeping updates and relevancy to other's innovation. They often might consider that since one fail can be a major career destroyer, it is smart to stay on the safe course that is to avoid taking initial risks in their business and technology. But the fact is neglected that mostly huge payoffs are the results of risks taken. For example, the challenger company in business, both Federal and Amazon has taken sacrificial risks for very low profit in order to get the final successful payoff. The incumbent firms also has some difficulty to focus in the future upgrading of their services. For example, "Blackberry" came up with a smart phone with its own innovative features but failed to keep them updated and got beaten by the other challengers. But Apple who came up with iPhone proved them wrong by keeping their products and services more advance. There is also some lacking in the incumbent firms in addition to innovation which is their lacking in empowering innovation champions and fostering innovation competitions (Aaker, 2013). Since the competition has gotten heated up and the incumbents are studying and researching for their development and in other words to stay or win back their positions as leaders the challengers has taken up various opportunities. These opportunities has made a way for them to establish themselves and also to beat up any competition from the incumbents. An exceptional one is the opportunity that is available in the form of partnership with other incumbents which might lead the challenger companies not only to establish themselves but also to reach out beyond their home countries by leveraging their partnered incumbents who has experience already. They are eager to fill any gaps and they are entering the global market faster because of not facing any entry hurdles. Challengers has much higher risk tolerance than the incumbents which proves to a greater advantage for them. Not only they take opportunities to partner with the incumbents and other challengers to obtain a foothold in the global market but also work with outside partners such as private-equity firms. The strategy here is to overcome any negative challenges and relations might result in success for the both companies. But partnerships that constitute of the relation where both the companies has to perform their best, which normally results in advantage for their setting up in global market can be referred as a win- win situation (Aguiar et al., 2009). Another strategy is that the challengers always look for optimizing their supply chain to reduce costs and risk of disruption, whereas the incumbents are often a victim of risk disruption in case for innovation. In addition to this reason for disruption, most incumbent companies are not eager to provide incentives that would make the employees work harder for innovation. They are more likely satisfied with their current profit and customers. As a result of no incentives, there is a lack of innovative ideas and presumably no competition among the employees to work and spend time on innovative ideas, which is considered a well enough reason for the challengers to beat the incumbents (Majamaki and Akpinar, 2014). Though their financial strategies of the incumbents are getting better to overcome the slow and lengthy process. The companies are now adopting technologies in which they can eliminate the middleman but still transfer money to overseas. Research and evidence say that the challenger companies were normally prone to utilize the "PayPal" service and so was some incumbents. This is a progress for them but not enough to not getting beaten by the challengers (Faktor, 2016). If the example of "Blackberry" is illustrated, the history of mobile phones shows that at one point the ultimate Smartphone was none other than Blackberry, the first android prototype. The story of "blackberry" is known as "An incumbent business being disrupted by sprightlier newcomers". After Blackberry was launched the other challengers started to improvise their Smartphone while keeping them Android and started making them large and more user friendly (Savov, 2016). A worthy challenger to Blackberry can be considered the Samsung galaxy series. They not only targeted the business users but also covered up every potential market segment of customers. While challenging the Blackberry's sale, Samsung kept its other products in line, increased its sale by only launching the Galaxy series. And it did not stop there, when the other challengers came to the market Samsung kept updating its product by investing in innovation or upgrading the ideas and further released the Samsung Galaxy Pro and other Galaxy tabs (Shaer, 2011). To overcome this Blackberry should have been started to make their future Smartphone as supreme as