Page 98 - MYM 2016

Marketing Secrets of Industry Disruptors
add More value by de ning new ecosystems
e next key element in disrupting an industry and solving customer headaches is to create new ecosystems. Again, Apple was a pioneer in this area. In 2013, Apple CEO Tim Cook said at a Goldman Sachs Technology and Internet conference that Apple can be distinguished from other companies due to its expertise in so ware, hardware, and ser- vices. On the so-called vertical integration that the company has followed for the last few decades, he reportedly said, “Apple has the ability in all three
of these spheres to innovate like crazy and cause magic” (USA Today, 2013).
Other companies are trying desperately to catch up, but it is not easy. Google, Microso , and Amazon have entered the fray by setting up their own ecosystems, which include devices, books, games, music, media, and storage services. Each company has its own distinct strength and has been trying to grab market share from Apple. Amazon leads in e-commerce, while Google dominates in online search and advertising. Apple had a head start in music with its iPod and iTunes, but its recent Apple Music streaming service was under- whelming and it may be losing ground in the music area. Who will come out on top? Only time will tell.
cut costs
Finally, one of the de ning traits of disruptors has been to drastically cut costs for consumers. You know your book from Amazon is probably con- siderably cheaper than it would be from your local bookstore and your ride with Uber will set you back less than a taxi fare. In Paris, I recently discovered great quality eyeglasses for $9.99 delivered in less than an hour from a company called “Lunettes Pour Tous” (lunettespourtous.com). Needless to say, I bought more than one pair.
One of the principles of lowering costs for con- sumers is using the internet and other technology to cut out the old middleman, who, from what we can see today, was perhaps funneling too much value his own way. e jobs market will adjust in time, but not without some pain.
Another principle is scale. anks to its sheer size, Alibaba can o er services for next to nothing but still make a pro t due to the colossal numbers of transactions made.
Understanding these ve principles is a good way to get ready to disrupt – for start-ups and established companies alike. is is the new way of doing business and it is not going to change any time soon. ■
Dominique Turpin holds a PhD from Sophia University, Japan. He is the Nestlé Chaired Professor and President of IMD Business School, Switzerland.
RefeRences:
Bouquet, C. (May 22, 2015). Presentation at IMD Business School.
Cordón, C. (April 19, 2016). Presentation to the IMD UK Alumni Club.
Harvard Business Review. (Oct. 2006). What Business Are You In?: Classic Advice from eodore Levitt. Retrieved from https://hbr.org/2006/10/what-business-are-you-in-classic- advice-from-theodore-levitt
Martin, S. USA Today. (Feb. 13, 2013). Tim Cook: ‘bullish on innovation of Apple.” Retrieved from http://www. usatoday.com/story/money/2013/02/12/apple-ipad- iphone-goldman-sachs-google-microso -surface-tim- cook/1912951/
Rogers, B., & Kumar, N. (2000). Case Study: easyJet: e Web’s Favourite Airline.
Vlaskovits, P. Harvard Business Review. (Aug. 29, 2011). Henry Ford, Innovation, and at “Faster Horse” Quote. Retrieved from https://hbr.org/2011/08/henry-ford-never- said-the-fast
98 | MINd YOUr MarkETING OCTOBEr 2016