Monday, February 12, 2007 6:29 AM
Michael Urlocker at The Disruption Group wrote a great post recently entitled Spend 3 Minutes To Become More Competitive Than Sony. The post offered "a crash course in competition, as illustrated by Sony and Nintendo in the electronic game console market." Specifically, how Nintendo has emerged with a disruptive business model, centered around its Wii system, that is changing that entire marketplace.
In reading Mr. Urlocker's post, and especially its conclusions, I was struck by its transferability to other industries and verticals. Read the conclusions/lessons below from his post:
Six Disruption lessons from Nintendo's Wii:
- Nintendo's market disruption is not about better technology;
- Disruption is not about incremental improvements;
- Disruption is about understanding where the customer experience is not good enough;
- Disruption is about making a product more accessible;
- Disruption is about changing the basis of competition;
- Disruption is about a new business model.
Why Disrupt?
- New revenue growth
- New high-value customers
- Sustainable, high return on equity
- More cohesive strategy and management teams
Replace "Nintendo" with a business name you know. Then replace the words/brand "product" and "Wii" with "service." Reread the conclusions/lessons. See what I mean? What works for one business may well work for another competing in a wholly different industry. Not every bullet point, of course, but many of them.
I wonder if future disruptive forces in the legal industry will include some lessons from what worked for Nintendo and Wii in their business plans?
Good stuff.
p.s. Here is that post again, Spend 3 Minutes To Become More Competitive Than Sony.