Big Fish Eat Little Fish or Small Fish Eats Big Fish?
- Big Fish Eat Little Fish : IBM or Microsoft eating Little fish
- Little Fish Eat Big Fish : New entrants eating away Big Fish ( Read Facebook, Amazon, Google)
Without going on fishing for long, let us get into to another story (movie 1998 )
YOU’VE GOT MAIL (1998) – American Movie
Director: Nora Ephron ; Starring: Tom Hanks, Meg Ryan and Greg Kinnear.)
This is very beautiful movie, where girl meets boy on chatting. They fell in love. Incidentally girl is owner of small book store. Boy comes with bigger store, now keeping girl’s business out.
The gist of it, big book store like “Barns and Nobel /Borders” keeps smaller book store “out-of-business” . The competitor bulldozing the existing market players is the key here
Beautiful love saga and romance between two great actors is the fresh blood in love stories with a technology mix. I also loved Titanic, Perfect Storm and Message in the bottle movies in the same time zone.
Big/New/Innovative fish bulldozes exiting market players
- Amazon.com has supplied books via internet
- E-Books, Kindle came
- Because of this traditional book store’s market got collapsed
- This affected, other small players ; Player who are not migrated got declined or collapsed (into thin air.
So why organization(s) fail?
- Organizations compete in same market space and fight for the same cake like kids (fighting for the same toys ). It is “Red ocean strategy”
- Over bidding and underbidding, getting into malpractices
- They fight for existing market piece than moving into un-explored territories
- Taking over, bulldozing the existing market place.
Any tools to use to see and prevent?
Oh my god, do we have strategy to do and analyse?
Few tools, for
1. PEST Analysis :
- This is a useful tool for understanding the market growth or decline, and as such the positions and direction for business
- PEST is Political, Economical, Social and Technological factors
2. Michel Porters : Five Forces Model
It is a frame work to analyze the level of competition within the industry and business strategy development.
3. Value Chain :
It is set of activities that a firm operating from specific industry performs in order to deliver a valuable product or service.
Cost Advantage: Better understanding the costs and squeezing them out of value-adding activities
Differentiation : By focusing on those activities associated with core competencies to perform them better than competitors
Primary activities are related to manufacturing industry.
4. SWOT analysis
Hope this helps