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Are You Willing to Cannabilize Your Own Revenues to Innovate?

This is a classic question for big companies, and usually the answer is no!

Look at the graph in the attached link carefully and you can see how the introduction of the iPhone hurt the iPod, but look at what a MONSTER business it grew for them. This is a classic GREAT move that most big companies have trouble making.
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Heather Morse's profile photoJason Suss's profile photoBen Anderson's profile photoDiran Afarian's profile photo
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iPhone hurt the iPod? What's an iPod - just kidding - I think of the iPhone as the iPod 2.0 (and that includes all the MP3 flavors of the iPod) - I think there is the potential for a iPod 3.0 that's not an iPhone that has WIFI and Music Syncing - so lets go Apple!

We got a new iPod Nano and my favorite feature - the FM Tuner which the Zune had for years (what's a Zune? you say - its on a shelf with Microsoft Bob).
 
Actually, the answer tends to be "yes" but it rarely gets done...
 
You could likely see something similar over at Amazon with their huge investment in Kindle. They took the chance of sacrificing their bread and butter (print media) for the chance that the future was digital media. It was an educated guess but it also tore away at their base product. Their move actually forced changes across the market that could conceivably be the cause of Border's closing their doors.
 
Isn't that true for most products? Coke's biggest competitor is not Pepsi, but other Coca-Cola products. Coke Zero challenges Diet Coke. They all compete for the same shelf space. Why would it be any different for the Apple products? Create the BRAND loyalty, not so much the product loyalty.
 
This could be a reason for the decline of Nokia. Too afraid to rock their boat?
 
Exactly +Rob Bergin, if Apple is not thinking in kill the iPod line, they must go WiFi to synch with iCloud. It will revamp the product line, but they will remain as a niche product, since iPhone & iPad are the solid leading products for the masses.
 
Microsoft Bob! I just watched a YouTube video of Bob and the memories came flooding back. I was 15 and just becoming sophisticated enough with a computer that Bob was quaint.
 
talk about a serial innovator......
 
It also tells another interesting story..Each new product introduction created a new market for them before eating into the existing markets.
 
Only if the innovation will serve the needs of the many which outweigh the needs of the few.
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