How would a company maintain an appropriate balance between exploration and exploitation?

How would a company maintain an appropriate balance between exploration and exploitation?.

I’m working on a Management exercise and need support.

Consider any real-world business, large or small: a restaurant in your community, a barber shop, a health club, a large manufacturer like General Motors, a large retailer like Wal Mart, and so forth.

• Explain how that company would maintain an appropriate balance between exploration and exploitation.
• Describe briefly the place of that company in the industry it is in and then answer one or more of the following questions:

Does it capture the value it creates?

Who are its competitors?

Does it have entry and incumbency advantages?

Who has vertical (buyer or supplier) power: the company or someone else?

How would a company maintain an appropriate balance between exploration and exploitation?