Wednesday, May 9, 2012

Inertia and Entropy II

...bankrupt Blockbuster because the latter could not, or would not, abandon its focus on retail stores.  

Successful strategies often owe a great deal to the inertia and inefficiency of rivals.  For example, Netflix pushed past the now bankrupt Blockbuster because the latter could not, or would not, abandon its focus on retail stores.  

Despite having a large early lead in mobile phone operating systems, Microsoft's slowness in improving this software provided a huge opening for competitors, an opening through which Apple and Google quickly moved.

ACTION POINT: Understanding the inertia of rivals may be just as vital as understanding your own strengths.

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