MANAGING in the

NEW WORLD

A lot of large sized companies fall under their own created traps of success. Due to their success, they get amplified from global trends, and suddenly when challenges occur they are unable to deal with it. Examples abound of big brands collapsing under their own weight but there are others which have fought off this trend.  Apple is one such example where the i-Phone literally disrupted its previously successful i-Pod. Facebook another as the company used a variety of offerings within its family to stay competitive even during downturns. Within its portfolio, exist Messenger, Instagram, Whatsapp and of course the mother brand itself. P&G similarly has cannibalized its own products by launching products that compete with one another. This business innovation of theirs ensures that their brands get cannibalized by their own upgrades rather than competitors’. A common failing of legacy brands is that they expect the audience to lap up any product they launch. They even think that customers’ tastes can be modified according to the product developed which they can monetize to best benefits. Such organizations suffer from creation of silos such as sales, marketing, finance or customer support all existing in their own spheres. This hinders development of ideas while individual team members focus more on themselves rather than the bigger picture. In addition to those mentioned, the likes of Amazon and Netflix have also done similar brand cannibalization. Others such as Dropbox, Line, Spotify and Snapchat will soon enter the phase where they need to diversify into a family of products.

Source:https://backchannel.com/how-companies-can-avoid-the-innovator-s-dilemma-3f980ae533a7#.fkj8oj4mg

 

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