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I was speaking with the owner of an auto shop a few months back and he made an interesting point I hadn’t heard re Ford: whereas Tesla is eating new customers,
by scop 3y ago
I was speaking with the owner of an auto shop a few months back and he made an interesting point I hadn’t heard re Ford: whereas Tesla is eating new customers, Ford and other legacy automakers are having to eat their own customers…which can lead to some serious business complexity!
- SamuelAdams 3y agoIn the business world we call this cannibalizing sales. https://en.wikipedia.org/wiki/Cannibalization_(marketing)?wprov=sfti1 https://en.wikipedia.org/wiki/Cannibalization_(marketing)?wp...
- deleted 3y ago[deleted]
- CharlesW 3y agoThe Innovator's Dilemma is a classic book on this, well worth a read: https://claytonchristensen.com/books/the-innovators-dilemma/ https://claytonchristensen.com/books/the-innovators-dilemma/
- jandrese 3y agoYep, and there is always a business case for trying to suppress/ignore the new technology and stick with what you know and what has been profitable for many years. This is how once mighty businesses fail. Look at Sears, who was Amazon before anybody knew what the Internet was, but then the Internet appeared and they couldn't move on because they had invested too much in their old business model. Moving a catalog mail order business online should be an incredibly easy transition, but decade after decade they dawdled until it was too late because it would have hurt the stores and the quarterly profits.