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Strategies for a discontinuous future.












Saturday, September 27, 2003
 


Strategic decay: the problems wireless susbscribers might face with single-number portability.

Every strategy decays. Entropy exists at the firm-level too. The obvious signal of such strategic decay is when your strategy is so far out of alignment with your market that your customers begin to not like you and switch in droves to your competitors. Then you try and impose all sorts of shady switching costs, which makes them not like you even more. Finally, your strategy falls apart, and your industry gets reshaped by somebody else - a radical innovator and risk-taker.

The old school telcos essentially helped build the wireless ones, by employing such customer-unfriendly tactics that there was no love lost when their market started to decay. If the wireless network operators or service providers can't see this, and use the same tactics to stall the provision of simple services customers want - like number portability - they are opening an even wider gap for VOIP visionaries like Skype to completely deconstruct their industries.

-- umair // 6:30 PM //


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