Competing on Analytics

By Dr. Amit Bhadra, Dean-WSB

As companies achieve parity with their competitors on products, technologies and services, analytics is emerging as the new arena of the war to gain competitive advantage.

Using analytics, companies now know what products their customers want, what prices they will pay, what will motivate them to buy more, how much each employee contributes to the bottom line and how salary levels relate to an individual’s performance. Analytics permitted Amazon to be instrumental in turning in a profit inspite of making huge investments in infrastructure and customer acquisition.

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Disruptive Innovation

By Dr. Amit Bhadra, Dean-WSB

Disruptive innovation is any situation in which new entrants using different business model win over customers of previously successful incumbents. Right? Not necessarily.Disruptive innovation is a process where a smaller company successfully challenges a bigger incumbent but not by targeting the most attractive customers of the incumbent. The entrant targets less attractive foothold markets. These are of two types. i) Under served customers who have lower expectations and lower willingness to pay a high price. Like the market for small cars in the US in the 1970s. ii) Non-users of a category. Like non users of personal computers in the 1980s and non users of radio in the 1960s. These segments proved to be the major markets for desktop computers and transistor radios.Read More

The Platform: A Radically New Way Of Doing Business

In 2007 a weak Apple with less than 4% market share in desktop operating systems and none in mobile phones was surrounded by five 800 pound gorillas – Nokia, Samsung, Motorola, Sony Ericsson and LG. These corporations controlled 90% of the industry’s global profits. The iPhone was introduced in 2007. By 2015, the iPhone singlehandedly generated 92% of global profits, while all but one of the former incumbents made no profit at all.

Apple, along with Google’s competing android system decimated the competition by exploiting the power of platforms and leveraging the new rules of strategy.

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