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“Salesforce will still appeal to big businesses with annual sales of $300 million or more since it has more sophisticated tools” I question how much Salesforce
by prng2021 2y ago
“Salesforce will still appeal to big businesses with annual sales of $300 million or more since it has more sophisticated tools”
I question how much Salesforce cares about these smaller businesses. They might have let Shopify take this segment of the market to focus on bigger companies.
- bhouston 2y agoThis is the classic disruption strategy though. Each time Salesforce may be like, yeah I can retreat from that territory, it wasn't that profitable anyhow compared to what I will keep. But in disruptive strategies, this repeats over and over again, until there is no territory left that is safe. <quote> Incumbent businesses innovate and develop their products or services in order to appeal to their most demanding and/or profitable customers, ignoring the needs of those downmarket. Entrants target this ignored market segment and gain traction by meeting their needs at a reduced cost compared to what is offered by the incumbent. Incumbents don’t respond to the new entrant, continuing to focus on their more profitable segments. Entrants eventually move upmarket by offering solutions that appeal to the incumbent’s “mainstream” customers. Once the new entrant has begun to attract the incumbent business’s mainstream customers en masse, disruption has occurred. </quote> https://online.hbs.edu/blog/post/4-keys-to-understanding-clayton-christensens-theory-of-disruptive-innovation https://online.hbs.edu/blog/post/4-keys-to-understanding-cla...
- pwillia7 2y agohttps://public-media.interaction-design.org/images/encyclopedia/disruptive_innovation/fig_1_the_disruptive_innovation_model.jpg https://public-media.interaction-design.org/images/encyclope...
- dehrmann 2y agoOn the other end, some of the largest customers might bring more of the tooling in-house.