Why Winner-Takes-All Thinking Doesn’t Apply to Silicon Valley

Harvard Business

Given that news, it seems that businesses that have dominated their markets are learning that the magic elixir of network effects and winner-takes-all advantages are about as reliable as cures for baldness. In turn, the first mover experiences explosive growth and assumes a dominant market position while earning wonderful profits. And even if it did make that bet, the winner-takes-all business could credibly threaten to drop its prices at the first sight of competition.

Why We Shouldn’t Worry About the Declining Number of Public Companies

Harvard Business

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. Such acquisitions become more lucrative with rising first-mover advantages, pace of technological development, and network externality. westend61/Getty Images.

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A Survey of 3,000 Executives Reveals How Businesses Succeed with AI

Harvard Business

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. Long-term: Work with academia or a third party to solve a high-impact use case (augmented human decision making in a key knowledge worker role, for example) with bleeding-edge AI technology to potentially capture a sizable first-mover advantage.

How AI Will Change Strategy: A Thought Experiment

Harvard Business

First, the convenience of predictive shipping makes it much less likely that you purchase the items from a competing retailer as the products are conveniently delivered to your home before you buy them elsewhere. First, they must invest in developing a better understanding of how fast and how far the dial on their prediction machines will turn for their sector and applications. How will AI change strategy?

NewTV Is the Antithesis of a Lean Startup. Can It Work?

Harvard Business

The mantra of “ first-mover advantage ,” the idea that winners are the ones who are the first entrants in their markets, became the conventional wisdom in Silicon Valley. First movers didn’t understand customer problems or the product features that solved those problems (what we now call product-market fit). CSA Images/Colin McPherson/Getty Images. NewTV, a new company focused on short-form video, just raised $1 billion dollars.

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How Netflix Expanded to 190 Countries in 7 Years

Harvard Business

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. In France and India, for example, homegrown leaders offer local-language video content, thus depriving Netflix of first-mover advantage. Fernando Trabanco Fotografía/Getty Images.

How Netflix Expanded to 190 Countries in 8 Years

Harvard Business

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. In France and India, for example, homegrown leaders offer local-language video content, thus depriving Netflix of first-mover advantage. Fernando Trabanco Fotografía/Getty Images.

Strategy and The Uncertainty Excuse

Harvard Business Review

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. They may be strategizing their way to first mover advantages and positions that leave few if any attractive options in the market.

It's Time to Cut Back on Social Media

Harvard Business Review

Clearly there is a first mover advantage 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. I recently got back from the New Media Expo in Las Vegas.

Growing, or Not, in an Age of Permanent Volatility

Harvard Business Review

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-mover advantage, not price point. The need to deploy more dynamic operating models, while maintaining short-term economic commitments, is clear.

The Health Care Industry Needs to Start Taking Women Seriously

Harvard Business Review

The good news: By engaging this market segment and rebuilding trust, health care companies can have a first-mover advantage. They must first develop gender smarts with customers and exhibit the behaviors women seek, as decision makers, to serve their needs. What is the greatest impediment preventing Americans from getting good health care? Surprisingly, it’s not the cost of care.

Business Model Innovation is the Gift that Keeps on Giving

Harvard Business Review

Within the first 5 years of its founding, Amancio Ortega, the founder of Zara figured out the responsiveness and speed were key to dominance in apparel retail as opposed to costs so Zara produced in expensive locations and used expensive shipping modes to react to trends faster. Before long, despite all the first mover advantages of Viagra, the competitors reduced Viagra's market share from over 90% to around 50%.