Posted by Daan de Koning on November 11, 1999 at 07:22:39:

In Reply to: New Economy and strategies. posted by Kees de Vos on November 09, 1999 at 10:11:49:

Kees,

assumes (and recommends) choice

With Mass Customization, a product or service is decomposed into its STANDARD elementary components (e.g. insurance and other financial services).
With Mass Customization an organization is able to deliver products & service at lowest price (based on economies of scale and efficiency in the production and delivery of standard components)
it is able to differentiate (new combinations of standard components = new product)
and focus / customer intimacy is realized because only at the actual delivery of the product or service it is assembled ACCORDING TO CUSTOMER NEEDS.

Downside:
one can see in the financial services industry that this has happened. With Mass Customization a bank is able to target the 'greatest common denominator' in the market. All 'main stream' financial services providers have been doing that, and one can observe severe competition, take-overs, mergers, all the symptoms of an end-stage game in a mature industry.

"real" innovation is the emerging 'financial portals' on the internet. But these do not have a large market share (yet), but are perceived as a real threat.

So, at this moment, one can see both new rules in a new economy, old rules in an old economy, new rules in an old economy, and old rules in a new economy, in which strategic framework does and does not apply

Daan

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Follow Ups:

• MORE Re: New Economy and strategies. Daan de Koning 07:23:26 11/11/99 (1)
  • Re: MORE Re: New Economy and strategies. Kees de Vos 09:17:22 11/11/99 (0)

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