Aus, very interesting insights. I keep asking myself whether this theory has exceptions, and like many good theories, it does. Another model that could have operated here would be the famous innovator model. Thus, a company like Sony has an enormous advantage. People already know the name and respect its quality and innovative products. They are drawn to almost any product that carries the Sony name. Similarly, when IBM came out with a PC, it immediately captured the lead from a host of companies, such as Apple and Radio Shack, that knew how to sell to home users.
When Apple introduced the Macintosh, it was years ahead of anything IBM had and could easily have become the leading personal computer but for one mistake. It was not an open system. You couldn't even open the case without voiding the warranty. No other companies were licensed to sell the product. It quickly was overwhelmed by an inferior product that, because of flexibility from each manufacturer pushing certain key performance features, could better meet individual needs in business and the home. Contrast what Apple did with what SanDisk has done -- creating an open standard, licensing the technology to anyone interested. While it is true that a market leader emerges quite spontaneously, in my opinion it is the quality of management that ALWAYS makes this outcome a reality.
Art |
