Competitive advantage is never permanent. After watching this video, you will be able to explain four types of disruption that can either threaten or be an opportunity for a company.
- One of the biggest mistakes that successful companies make … is to become fat, dumb and happy. … Look at the retailer Kmart. … Both Kmart and Walmart were founded in 1962. … 20 years later, Kmart was actually bigger than Walmart … yet by 2000 Walmart would far outdistance Kmart. … Since then the gap between the two … has actually widened rapidly. … As another example, look at Nokia in mobile phones. … As recently as 2008, Nokia was the global giant … with a nearly 40% share … of the worldwide mobile phone market. … Barely five years later, … facing an onslaught from Apple and Samsung, … Nokia was struggling to survive … and had to sell itself to a richer parent such as Microsoft. … The dire alternative was to keep withering away and die. … As the Kmart and Nokia examples vividly illustrate, … competitive advantage is never permanent. … Every company must always be on the lookout … for four types of disruption. … Each type of disruption can pose a potentially … serious threat to competitive advantage. …
Skill Level Intermediate
Q: This course was updated on 08/19/2015. What changed?
A: Due to member demand, we've added three movies to take you even further into competitive strategy: Competing through disruption, Managing complementors, and Understanding industry dynamics