Wondering what would happen if a company recognizes their core product is no longer a business differentiator. What if it decides to spin out the common pieces

Wondering what would happen if a company recognizes their core product is no longer a business differentiator. What if it decides to spin out the common pieces to vendors and spins up a skunkworks team to build a similar, competing product? Team A analyzes SaaS solutions and tries to replace existing systems with turnkey services. Team B makes a cleanroom implementation mirroring the original product. This could confuse sales, though. Team C is the skeleton crew that fixes bugs and still delivers new features, but at a reduced pace. Would this be too costly? Too much duplicated work? Maybe even having to choose only one team is an executive decision and determines the rest of the roadmap for the whole company. Each team would need a vertical slice of each department, from marketing to QA. But there would be cross-pollination, because each business sponsor fields requests from different aspects of the same thing. Some observations from other domains. The military has special forces, airborne, and frontline soldiers. Another is F1 technologies being adapted in consumer vehicles (if one car company manages the whole stack).