Leaders Light The Path

PODCAST EPISODE

Existential threats

How large businesses make business moves to protect themselves against existential threats.

Transcript
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In order to understand business moves of large corporations, it's a useful exercise

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to consider how they relate to existential threats to their business model.

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Why did Amazon build prime video?

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To protect itself from Netflix and other streaming platforms.

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It's not hard to imagine Netflix monetizing product placements by

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offering viewers the possibility to shop for the things they see in a show.

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Nowadays we're living in the attention economy.

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If somehow instead of the web, all of the attention went to Netflix or some other

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streaming platform, Amazon would be left without much attention and thus, without

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the possibility to sell you things.

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Why did Google build Chrome?

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To protect itself from any other browser dominating the web.

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The web is where Google makes its revenue.

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Therefore, if anyone, for example, Firefox or Safari, reached the position

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of a gatekeeper who can replace Google as the default search engine

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or, worse, block ads, it would mean an existential threat to Google.

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Similarly, why did Google buy and nurture Android?

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To protect itself from any mobile platform, dominating

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the access to the user.

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If anyone, for example, Apple with the iPhone, reached the position of

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a gatekeeper who can control what apps can be installed on most users’

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devices, it could potentially become an existential threat to Google.

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So what would be an existential threat to your business?

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And what do you need to build in order to protect yourself against it?

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Do you understand your customers well enough that you

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can identify those threats?

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