May 14, 2007

So what does an old company with a product that comprises 95% of one of its divisions do when faced with superior new technology and a lot of media exposure and supplier requests for it?

A smart company evaluates its place in the world, tweaks its strategy to address supply as demand creeps up, and hopes to stay ahead of the curve. A really smart company *cough*Phillips*cough* prepares to shift all its production away from its 95% gorilla to the new technology, integrates the shift with its overall strategy, and then lobbies to have the 95% gorilla outlawed, cutting similarly-placed but slower-moving competitors off at the knees.

Dumb companies amp up their ad budget, beg the President for subsidies, keep selling the gorilla, and get sold for $25B less than they were bought for a decade before.

0 Comments:

Post a Comment

<< Home