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In any other election cycle, the predictable increase and decrease in uncertainty offers shrewd managers unique opportunities for operating, investment, and financing decisions. This year, however, is different.
When I ask business executives about their company's strategy — or about an apparent lack thereof — they often respond that they can't or won't do strategy because their operating environment is changing so much. There isn't enough certainty, they argue, to be able to do strategy effectively. In truth every company has a strategy.
This creates an environment in which successful companies must have operating models that are dramatically more dynamic and able to shift more readily to capitalize on growth opportunities (or to cost-effectively weather periods of decline). Innovation focused on first-moveradvantage, not price point.
They operate as lean organizations, using cloud and internet-based infrastructure, and launch and distribute products more quickly than did firms that competed with factories, warehouses, inventories, and suppliers. Emerging digital firms compete with knowledge, strategy, and expert human capital, attacking even the largest established firms.
Before long, despite all the firstmoveradvantages of Viagra, the competitors reduced Viagra's market share from over 90% to around 50%. Business model innovations are often embedded in the firm's DNA, they define its core operating logic and for the competition to change and adapt its business model is much harder.
And AI success stories are becoming more numerous and diverse, from Amazon reaping operational efficiencies using its AI-powered Kiva warehouse robots, to GE keeping its industrial equipment running by leveraging AI for predictive maintenance. Investment in AI is growing and is increasingly coming from organizations outside the tech space.
The Justice Department even tried to break it up in the late 1990s because it thought, and many agreed, that this was the only way to create competition in the operating systems market. The message is simple: beware of the siren song of network effects, winner-takes-all, and firstmoveradvantages.
By 2017 it was operating in over 190 countries, and today close to 73 million of its some 130 million subscribers are outside the U.S. In the second quarter of 2018, its international streaming revenues exceeded domestic streaming revenues for the first time. Fernando Trabanco Fotografía/Getty Images.
It operates in over 190 countries, and close to 73 million of its some 130 million subscribers are outside the U.S. In the second quarter of 2018, its international streaming revenues exceeded domestic streaming revenues for the first time. and Netflix has managed to make inroads into even those markets where Prime arrived first.
In this example, it shifts Amazon’s business model from shopping-then-shipping to shipping-then-shopping, generates the incentive to vertically integrate into operating a product-returns service (including a fleet of trucks), and accelerates the timing of investment due to first-moveradvantage from increasing returns.
In this environment, multinationals that are willing to accept some risk and invest in the country could benefit from first-moveradvantages – but only if the new administration follows through with much-needed economic reforms. billion a decade later. Now the country is at a crossroads. Years of economic mismanagement.
The mantra of “ first-moveradvantage ,” the idea that winners are the ones who are the first entrants in their markets, became the conventional wisdom in Silicon Valley. Startups wrote business plans, generated expansive five-year forecasts and executed (hired, spent, and built) to the plan.
Clearly there is a firstmoveradvantage in some cases: Chris Brogan developed a passionate following as an early blogger, and Guy Kawasaki jumped onboard Twitter and became a powerhouse there. But even anecdotally, you probably have some good operating theories.
The good news: By engaging this market segment and rebuilding trust, health care companies can have a first-moveradvantage. They must first develop gender smarts with customers and exhibit the behaviors women seek, as decision makers, to serve their needs.
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