The reason is simple—but not simple enough apparently for most managers in most global companies to comprehend. Apple and Amazon have created disruptive platform innovations that change the game for consumers. And they have done it within a price range ($300 to $400) that reduces the cost and risks to people even in a recession.
Let’s take this strategy apart. First, a game-changing BIG innovation—a platform innovation. Second, a price for consumers that is low enough to entice them to take the leap into the new, disruptive innovation. Third, a multitude of applications and “stuff” (products, services, experiences) on the platform that provide value (information, insight,entertainment) to people.
via businessweek.com
