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The excavator industry has much in common with the hard drive industry. The disruptive technology of hydraulics caused a radical shift in mechanical shovel manufacturers designs and made many companies fail. This radical change is also reflected in the hard drive industry where smaller size was the disruptive technology. However, it is not always evident that a disruptive technology will become a sustainable one. The result of a good company comes from good managerial decisions.
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Value networks don't necessarily imprison the companies within them. There is also considerable upward mobility into other networks. Managers can rarely build a case for downward mobility into less profitable markets. Resource allocation drives this mobility. Companies like Seagate were able to try less profitable markets while still having a foothold in their main market.
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