-
Strategies for a discontinuous future.





Consulting & advisory, research notes, in the press, about bubblegen,
next wednesdays.





Thursday, October 09, 2003
 


The Replication Economy:

According to Bill Gurley, digitization=commoditization=hypercompetition.

It does - but only for the players that want to enter this Red Queen race. Firms have another alternative: build resources for the future protected by isolating mechanisms.

What does this mean? It's pretty simple: if Apex sells a China-manufactured DVD player at Wal-Mart for 43 bucks and change, it's tough to compete - especially when China's manipulating it's exchange rate. But no one doubts that in ten years, Sony is going to own part of the home's networked hub - and Apex isn't. Why is this? Because Sony's evaded the replication economy neatly by platform thinking. Platform thinking protects resources and capabilities.

Sony also hasn't entered the massive BPO arms race either - so it's core competences aren't being rapidly eroded.

-- umair // 3:39 PM //


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