Wow.
That is a strong statement.
Filed under 'Competitive Strategy' the article does a comparison between Apple's moves with the music industry a decade ago and its moves today with payments.
https://hbr.org/2015/04/apple-pay-is-just-a-big-giveaway-to-credit-card-companies
Here is a snippet from that piece:
It’s easy to assume Apple Pay is one in a long line of disruptive innovations from the master of serial disruption. But this time that’s not the case. Apple isn’t behaving as a disruptor here; it’s acting as a reseller.
This seems like an easy distinction to spot, but that’s not always so. Like disruptors, resellers can enter an industry with a different business model and target customers unattractive to established firms. But they extend an industry’s distribution structure rather than disrupt it. So for instance, independent insurance agents (who, unlike an insurance company’s own agents, can direct customers to a wide variety of insurers in search of the best deal), act as an additional sales channel for the industry, particularly at the price-conscious margins, not as an disruptive alternative. They would be disruptive if they were selling insurance from a company new to the industry using an independent, low-cost distribution channel, such as direct to the customer, either by phone or online.
I wonder how the article's author would look at the likes of CurrentC in the realm of disruptive forces?
Happy Reading,
J.W. Gant
This seems like an easy distinction to spot, but that’s not always so. Like disruptors, resellers can enter an industry with a different business model and target customers unattractive to established firms. But they extend an industry’s distribution structure rather than disrupt it. So for instance, independent insurance agents (who, unlike an insurance company’s own agents, can direct customers to a wide variety of insurers in search of the best deal), act as an additional sales channel for the industry, particularly at the price-conscious margins, not as an disruptive alternative. They would be disruptive if they were selling insurance from a company new to the industry using an independent, low-cost distribution channel, such as direct to the customer, either by phone or online.
I wonder how the article's author would look at the likes of CurrentC in the realm of disruptive forces?
Happy Reading,
J.W. Gant
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