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Aug 20
Today's Other News
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on Read/Write Web:
Enterprise 2.0: The Nature of the Firm
The break-up of behemoth, vertically integrated enterprises commenced in the 1970's, got
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on TechCrunch:
eBay Moving Away From Aution Model
Can anything put the wind back in eBay's sails? The once-iconic auction
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on Ubergizmo:
Xplore Technologies iX104C4 Tablet PC
Do you live a tough life or work in a harsh environment?
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on Mashable:
Private Browsing Coming to IE?
Private browsing is browsing the Web without leaving any traces of
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on OhGizmo!:
Tamiya Wind Powered Electric Toy Car
While this electric toy car/windmill model kit is recommended as an educational
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on Ars Technica:
Fire Eagle Ignites Geo-Aware Applications
Last week, Yahoo!'s Brickhouse launched Fire Eagle to the public. Fire Eagle
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on Gadgetopia:
Video: Lifelike animation heralds new era for computer games: Wow. This is
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on Alarm: Clock:
SocNet Ad Network Lotame Raises $13M
Lotame has has raised $13M in Series B led byEmergence Capital Partners
Recent Posts from Fractals of Change
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YOU Needs More Upload Capacity
“YOU”, as you know, is the Time Magazine Person of the Year.
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2007: Local Warming
The blogosphere is full of self-congratulation this week; Time Magazine has recognized
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Reader Comment on Settlement Charges and Thoughts on Swaps
Ted Weitz is a very smart guy who was Chief Counsel
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Voice Over WiFi – The Change Function Test
In his usual talk-from-experience style, Om Malik points out all of
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Price – Why Not Just Bill and Keep?
Back in the old days when telephony was the province of
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Published on Fractals of Change at 9:06 AM
Price – Toppling an Incumbent
The bigger they are, the harder they fall. The proverb applies to incumbents with huge market share (aka former monopolies) as well as to trees and schoolyard bullies. An enormous customer base paying comfortable margins makes it nearly impossible for an incumbent to fight a disruptor in the marketplace.
Disruptive technologies which provide new and better ways of doing things are all the rage. As an entrepreneur, I loved seeing the opportunities created by the PC, the graphical user interface, and the Internet – particularly the World Wide Web. But a necessary condition for all of these breakthroughs was a sharp drop in price. The PC revolution needed cheap MIPs (computer processing power); GUI needed even cheaper MIPs to do all the graphic processing; and the popular Internet needed the PCs, the GUI, AND cheaper communication at broader bandwidths.
This post is about price – not features. It is about how price alone can be used to bring down an incumbent and why the incumbent won’t fight back IN THE MARKETPLACE until it’s too late...
Published on Fractals of Change at 9:06 AM
