greg & kevin on apps and business strategy
TRANSCRIPT
THE BIG EVILexcess capacity
In Porter’s 1985 landmark Competitive AdvantageBeyond the traditional five forcesIndustry profitability is shaped by EXCESS CAPACITY
Industries drain awayWhen supply and demand tipInto excess capacity
THE BIG EVILexcess capacity
EXCESS CAPACITYpricing
First profits go awayFull costing then moves to Costing At The Margin
To lossesTo industry rationalization
Matching supply & demand pain
NOW WE HAVE APPSUber for everythingApps for everything
More apps than we can countAccessible everywhereBy everyoneBuilt by anyone
WHEN TWO IS TOO MUCHexcess capacity
One app can service the world’s demandTwo apps doing the same thing is global industry excess capacityThen the rot sets inWTF
Deep funding | High riskFirst to growth with only one winnerPower of the Network Effect
Silicon Valley Approach
A FRAMEWORK | CORE COMPETENCIES
#1 variety of markets can be accessed#2 significant customer benefit
#3 difficult to imitate
Hamel & Prahalad
identify
#5 key steps | DIFFICULT TO IMITATEbeyond software development
embedding your brandaccess value chains and business
processesleverage data pools
alternative monetization streams