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Strategies for a discontinuous future.












Saturday, August 21, 2004
 


Strategy Decay - Case Study

From 'Is VoIP Chump Change?':

"..."It's not going to, like, change my life," Dorman said. "This is going to be a couple-of-billion-dollars-a-year product. But you have to put that into the context of a $25 billion-a-year company."

Clearly, the question is not the size of the VoIP market - that will by definition be much smaller, since it is essentially a hypercommoditizing innovation. The question is how much of the $25 biliion VoIP will vaporize, or, if you like, how much it will shrink the pie (at least for AT&T).

These days, A $25 billion/yr company can become a $25 million/yr company with increasing speed. That's what hypercommoditization means. But to recognize all of this means stepping outside the usual frames of hidebound industry dynamics, and figuring out what's really going on. That's what decay is really all about.

-- umair // 11:12 PM //


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