Comments on: Economics: More Competition Leads to Less Competition http://visionarymarketing.wordpress.com/2011/10/04/economics-more-competition-leeds-to-less-competition/ about marketing, strategy, innovation & social media Wed, 10 Apr 2013 23:37:15 +0000 hourly 1 http://wordpress.com/ By: Reynold http://visionarymarketing.wordpress.com/2011/10/04/economics-more-competition-leeds-to-less-competition/#comment-33 Mon, 11 Sep 2006 15:59:16 +0000 http://visionarymarketing.wordpress.com/2006/09/06/the-rule-of-three-do-most-markets-end-up-being-dominated-by-3-different-companies/#comment-33 Hi Yann,

I agree with Getz and Robinson. Hardly any firms are able to succeed with only “jackpot innovations” in their portfolio. A good example from the entertainment industry which I’ve recently written about is the Star Trek franchise. Of their two major innovations, “The Next Generation” (a sequel to the original TV series set one hundred years ahead) is an acclaimed success while “Enterprise” (a prequel to the original series) is an abysmal failure. Incremental innovations such as the movie sequels based on the original series and “The Next Generation” and successful spin-offs like “Voyager” and “Deep Space Nine” have kept the franchise alive and in good health for several decades now.

Cheers,

Reynold

]]> By: visionarymarketing http://visionarymarketing.wordpress.com/2011/10/04/economics-more-competition-leeds-to-less-competition/#comment-31 Mon, 11 Sep 2006 09:48:29 +0000 http://visionarymarketing.wordpress.com/2006/09/06/the-rule-of-three-do-most-markets-end-up-being-dominated-by-3-different-companies/#comment-31 Thanks Reynold, this is a very good point. You are right when you say that the order of things in ‘mature markets’ can be upset by an innovative newcomer. To a large extent, this is what Stelios did with Easyjet; he is also trying to replicate this method in every other market he wishes to dive into (cybercafés, hotels, rental cars, pizzas and even jobs I noticed on their http://www.easy.com/ website). Thanks for the comment on Chistensen’s book. I will add a few words about it. Please note that Chistensen’s book is also quoted by Getz and Robison in their excellent article entitled ‘innovate or die’ which was commented on this blog too: http://visionarymarketing.wordpress.com/?s=innovate+or+die

]]> By: Reynold http://visionarymarketing.wordpress.com/2011/10/04/economics-more-competition-leeds-to-less-competition/#comment-28 Sun, 10 Sep 2006 15:35:55 +0000 http://visionarymarketing.wordpress.com/2006/09/06/the-rule-of-three-do-most-markets-end-up-being-dominated-by-3-different-companies/#comment-28 Hi,

You pose an interesting question. I agree with you that industry consolidation is fairly inexorable (albeit with temporal variations depending upon the extent of market distortion). However, no competition is not the likely end-state. Clayton Christensen’s book ‘The Innovator’s Dilemma’ shows how upstart innovators have time and again disrupted so-called ‘mature markets’. At such times, the market is up for grabs once again and many players will emerge, innovate and fight for share until eventually the cycle of consolidation and innovation begins anew.

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