Theme: Institution

https://en.wikipedia.org/wiki/The_Innovator’s_DilemmaMajor points:

All companies that scale eventually become entrapped in (a) empirical measurements of revenue to satisfy investors rather than consumers (b) all follow-on-founders forget the SME’s who drive long term revenues. (c) all companies develop an organizing mythos that is no longer true when the market they exploited matures, (c) all companies fall into the innovator’s dilemma.

( see: https://en.wikipedia.org/wiki/The_Innovator’s_Dilemma )

IBM > DEC/WANG > MSFT > APPLE > SAMSUNG?

In other words, the innovator’s dilemma is only one quarter of the problem that causes a failure of leadership and eventual fall.

In Tech, thee producers think their products and services matter, when it is the elite content creators that matter. Tech HW/sw either captures elite content creators and elite content users that drive constant innovation, or they temporarily capture consumers on price.

Apple’s ipod was just a nice status signaling method of reselling music. BestBuy’s rise to dominance was funded in large part by the accumulated inventory of movies and music. Apple’s iPhone was funded in large part by the existing hw/sw, which they enabled by the much easier touch screen that didn’t require so much memorization by users. Apple’s attempt to repeat the itunes/ipod victory with news media and print using the iPad failed, but they instead cannibalized the laptop and desktop market, plus opened the market for pure consumers who create nothing.

Apple’s revenue is not entrenched by the network effect like IBM and ORACLE and Microsoft. And almost all their revenue comes from the iphone. The Iphone is now inferior to the Samsung except for its integration with the laptop/ipad/itunes/app store ecosystem.

Microsoft’s hardware and Operating system are inferior to the apple operating system – and at least until this month, the macbook pro was the best machine you could buy.

Microsoft’s Office apps are superior to Apple’s office apps, requring apple to sell microsoft office to its users.

Oracle, IBM, and Open Source platforms are superior to microsoft’s Developer and Platform Stacks.

So you see, everyone has malinvested. And the industry is RIPE for a catastrophic change.

I’ve been writing for years that the best opportunity for all CONSUMERS is for apple to pivot to the microsoft office user space when the iphone sales decline, as their only known option to prevent stock price collapse.

Apple lacks the culture and management to do this, not the market opportunity.

Samsung is unfortunately Asian at its heart and they cannot produce quality software.

Google has already tried the pivot and failed for reasons I could go into later, but it’s that their dominant cultural mythos is false.