Creative Destruction
Why the iPod is doomed
The more a company succeeds with a business model, the harder it is to anticipate its successor. And Apple has been reluctant to move its digital music franchise to 'the cloud.'
While I would certainly be happy at this, being the anti-computer corporation person that I am lol, it sparked another interest in me.
I went to a Super Computing Conference in Oklahoma a couple weeks ago and a topic lectured was Creative Destruction. It asks the question why the people who create something new, even inventing a new market, can almost never hold onto being the best or be the one to come out with the next greatest thing due to its own success.
The article is about the future fall of IPod if it does not look at the possibility of the "cloud" concept. Of course you need to take in account that the author is biased on the "cloud" as well. Pot calling the Kettle black lol. Apple currently holds most of the music player/music market at around 70%. Think Microsoft of the home computing market in comparison. Microsoft(2% with Zune) and media player companies hold the rest.
The way Creative Destruction works is:
1.) You have a company/product that holds the status quo, extremely successful
2.) You have inferior products or services that have a slow start and unfortunately are over shadowed by 1 or are produced to be different from 1 to offer different services, still inferior though.
So how does an inferior product take down the status quo?
Easy, just like the underdog boxer does to the champion. You take them down focusing on what makes you different from them and turn it into a weakness. This usually takes years of being a nobody, slowing growing a loyal fan base till that "difference" becomes HUGE and popular. Example, the divide between Photoshop and PaintShop Pro users. They both focus on a fan base - photo/images vs painting/drawing- and through the battle between them, collect consumers that aren't partial to either but are attracted due to popularity.
The more a company succeeds with a business model, the harder it is to anticipate its successor. And Apple has been reluctant to move its digital music franchise to 'the cloud.'
While I would certainly be happy at this, being the anti-computer corporation person that I am lol, it sparked another interest in me.
I went to a Super Computing Conference in Oklahoma a couple weeks ago and a topic lectured was Creative Destruction. It asks the question why the people who create something new, even inventing a new market, can almost never hold onto being the best or be the one to come out with the next greatest thing due to its own success.
The article is about the future fall of IPod if it does not look at the possibility of the "cloud" concept. Of course you need to take in account that the author is biased on the "cloud" as well. Pot calling the Kettle black lol. Apple currently holds most of the music player/music market at around 70%. Think Microsoft of the home computing market in comparison. Microsoft(2% with Zune) and media player companies hold the rest.
The way Creative Destruction works is:
1.) You have a company/product that holds the status quo, extremely successful
2.) You have inferior products or services that have a slow start and unfortunately are over shadowed by 1 or are produced to be different from 1 to offer different services, still inferior though.
So how does an inferior product take down the status quo?
Easy, just like the underdog boxer does to the champion. You take them down focusing on what makes you different from them and turn it into a weakness. This usually takes years of being a nobody, slowing growing a loyal fan base till that "difference" becomes HUGE and popular. Example, the divide between Photoshop and PaintShop Pro users. They both focus on a fan base - photo/images vs painting/drawing- and through the battle between them, collect consumers that aren't partial to either but are attracted due to popularity.