"Build a moat, create switching costs, leverage access to high costs of entry, own distribution channels, and it would be difficult for startups to compete for your markets. But the forces of disruption operate by different rules, systematically destroying the very foundations of pricing power by making the previously difficult and expensive suddenly easy and cheap. The basis of competition changes, from excellence along well understood dimensions of merit to "good enough.""
"E-readers lack the tactile satisfaction of turning pages, the smell of paper, and the aesthetic appeal of a beautifully bound book, not to mention the satisfaction of having an author personally sign your copy (if the latter doesn't matter to you, please don't break my heart and tell me). Yet e-books offer instant delivery, the ability to carry thousands of books in one device, adjustable fonts, built-in dictionaries, and search functionality. For many readers, that's good enough."
Traditional barriers to entry such as moats, switching costs, high capital requirements, and exclusive distribution historically preserved premium pricing and made startup competition difficult. Technological disruption systematically removes those barriers by turning previously hard, expensive capabilities into cheap, accessible ones and shifting competitive criteria from exceptional quality to "good enough." Customers increasingly accept lower-cost alternatives that meet core needs, eroding incumbents' pricing power. Examples include e-readers offering instant delivery, massive portability, adjustable fonts, search, and near-zero marginal cost pricing on bestsellers, and digital games enabling remote play despite losing tactile social rituals.
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]