4/06/2006 05:50:00 PM|W|P|RAJESH SEGU|W|P|Leader can never remain leader forever. Here is a business case-study of Britannica (Encyclopedia).
The market leader was Britannica - with sales of approximately $650 Million, they were considered the gold standard of the encyclopedia market containing “over 44 million words” written by scholars and “more than 80 Nobel laureates”. World Book Encyclopedia was firmly ensconced in second place. Both Britannica and World Book sold hundreds of thousands of encyclopedia sets a year for over $1,000.
However, in 1993, the industry was permanently changed. That year Microsoft launched Encarta for $99. Encarta was initially nothing more than the poorly regarded Funk & Wagnall's Encyclopedia repackaged on a CD – but Microsoft recognized that changes in technology and production costs allowed them shift the competitive landscape. By 1996 Britannica’s sales had dropped to $325 million - about half their 1991 levels – and Britannica had laid off its famed door-to-door sales staff. And by 1996 the encyclopedia market had shrunk to less than $600M. In that year, Encarta’s US sales were estimated at $100M.
So in just three years, leveraging a disruptive technology (CD-ROM), cost infrastructure (licensed content versus in-house editorial teams), distribution model (retail in computer stores versus a field sales force) and pricing model ($99 versus $1000), the encyclopedia market was cut in half. More than half a billion dollars disappeared from the market. Microsoft turned something that Britannica considered an asset (a door-to-door salesforce) into a liability. While Microsoft made $100M it shrunk the market by over $600M. For every dollar of revenue Microsoft made, it took away six dollars of revenue from their competitors. Every dollar of Microsoft’s gain caused an asymmetrical amount of pain in the marketplace. They made money by shrinking the market.
[It is also interesting to note how distruptive business models have continued to impact the encyclopedia market - anyone care to guess what Google and Wikipedia have done to Encarta sales in the last few years?]
Courtesy: Shrink a Market
So, start thinking big, start executing and you will surely end up big.
Leader is not forever, you can be one!!!!!!!!
|W|P|114432658064668123|W|P|Leader - does not mean forever|W|P|rajesh.segu@gmail.com4/06/2006 09:56:00 AM|W|P|RAJESH SEGU|W|P|BarCamp is around the corner in Chennai. Its happening on April 8/9th with a big bang at Anna Univerisity Chennai. I am really excited to be a part of that un-conference where innovation and socialize is the name of the game. Hope this weekend will really be interesting..............
|W|P|114429783092968012|W|P|BarCamp WeekEnd.......|W|P|rajesh.segu@gmail.com4/05/2006 07:05:00 PM|W|P|RAJESH SEGU|W|P|
Web 2.0 wave has finally reached India in the form of Bar Camp. Its gaining momentum by spreading its wings in all the possible major cities in India. This time Chennai is ready to host this mega event at Anna University on April 8th and 9th this year.
BarCamp is an ad-hoc un-conference born from the desire for people to share and learn in an open environment. It is an intense event with discussions, demos, and interaction from attendees.It focuses on Web 2.0, Social Media and Next Generation Internet.
In general, latest technologies lags time to find its trace in India. Technologies enter this country after long cycles of proven history. Slowly things get adopted and we are always behind. This was true some years ago and today the story is entirely different.
Web 2.0 has found its traces very early in India in the form of Zoho, Taaza, 360in , ........ . If somebody wondering about Web 2.0 , it simply means "For the People, By the People and To the People", thus making web more powerful than ever. With this advent, entrepreneurs have grown largely in number bringing about a new ecosystem into the Indian IT industry. Who could guess which can become the next Google/ MS / Yahoo...
Hope BarCamp would become to medium for this ecosystem in India brining about transparency in innovation , ideas, technologies and community. I wish them "ALL THE BEST".
I did my part in spreading this word for a bright IT tomorrow, now you have your part left.
|W|P|114424725236764657|W|P|Bar Camp - Chennai is around the corner|W|P|rajesh.segu@gmail.com4/05/2006 06:57:00 PM|W|P|RAJESH SEGU|W|P|
Everyone talking about Web 2.0 around the world , so here's Browser 2.0 for you. More extensions than the browser area has become the new wave. But how many would use so many of them, surely he must be User 2.0 expecting and managing more.
So, If you find any xxxx 2.0 just let me know.
|W|P|114424404439486978|W|P|Browser 2.0|W|P|rajesh.segu@gmail.com