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New Economy and strategies.


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Posted by Kees de Vos on November 09, 1999 at 10:11:49:

In Reply to: Re: The business link to this dichotomy posted by Daan de Koning on November 08, 1999 at 11:28:25:

Daan,

thinking things through there might even be a NRftNE product that follows both of strategies.

Think of it as a service carrier. You give the carrier away for free, as replication will minimize cost per product; however the standardized carrier also allows for cost efficient execution of mass customized services. E.g. Multimediaplayers -> Internet Radio -> Advertisements.

So both cost leadership and differentiation are at work. But are they strategies of the same company? They might be, and will the company be stuck in the middle then?

So I am not sure if it goes against the strategies of Porter. My intuition tells me it still can go either way.

What's your view on this subject?

Regards,

Kees.


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