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October 02, 2007


1800 phone words


In fact, today's market leaders, from Google, to Apple, to Nintendo, are revolutionary for different reason altogether. Conversely, companies and investors focused on business models are simply applying yesterday's obsolete logic to today's novel problems.


1800..., I don't agree. Specific business models become obsolete, but the idea of being in business is not going away and certainly each of your examples is succeeding because they have a viable business model.

Google had significantly better search technology and a better UI, but their success came from their Adwords auctions business model. Similarly, the iPhone represents a significant step forward in mobile UI, but a major part of their success has been in wrenching control from the mobile operators and shifting it to their application store. Indeed, they've made the mobile operators vulnerable and Android, Nokia, Microsoft, etc. are scrambling to participate in the new model. Nintendo has a revolutionary UI which has allowed them to take market share under the an existing game console business model.

All your example companies have business models and 2 of 3 are succeeding due to radically new business models.

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