The Death of Competition

"Competition as most of us have routinely thought of it is dead."

"Many executives rightly recognize that innovation is the only way to move forward."

"The new paradigm requires thinking in terms of whole systems, that is, seeing your business as part of a wider economic ecosystem and environment."

"The presumption that there are distinct, immutable businesses within which players scramble for supremacy is a tired idea whose time is past."

"The term 'business ecosystem' circumscribes the microeconomics of intense coevolution coalescing around innovative ideas."

"Most prevailing ideas on strategy today begin with the wrongheaded assumption that competition is bounded by clearly defined industries."

"The conditions and challenges prevalent in the fastest-moving sectors of the global economy are spreading inexorably to all the others."

"In an age of imagination, the ultimate struggle among companies is for the souls of customers and the hearts of vast communities of suppliers and other associated companies."

"Business ecosystem. An economic community supported by a foundation of interacting organizations and individuals—the organisms of the business world."

"There are one or more core capabilities that can become the basis for providing great value to end customers."

"The lesson of the business ecosystem is that you must have value, economies of scale, and continuing innovation, and you must invest in an expanding community of allies."

"As the old powers wait and wonder, vast new fortunes are rising on foundations built by swarms of entrepreneurs jostling to apply the integration of technologies and market creation that brings wealth."

"Competitive advantage in the new world stems from knowing when and how to build ecosystems, and from being able to steer them to lasting growth and continuous improvement."

"The old ways of defending your turf just don't work anymore. With metronome regularity, established businesses competing in standard ways will continue to be gnawed at by potent new rivals."

"It has become a truism that companies often fail by being 'too early' with particular innovative contributions."

"A central challenge facing business strategists in maturing ecosystems is how to maintain their authority and the uniqueness of their contribution to the community while also encouraging communitywide innovation and coevolution."

"In business ecosystems, there is a tremendous premium on inspiration and passion to carry the pioneers through inevitable failures, and on imagination and learning to suggest creative solutions and allow improvement based on analysis and experiment."

"To be able to effectively pick the brains of customers, you really need a situation that is conducive to learning."

"What are the naturally occurring markets and market boundaries within which we might operate?"

"In business ecosystems, there is also an advantage to diversity of people, organizations, and ideas."

"Innovation touches off races between alternative implementations."

"In the best cases, the ecosystem becomes so attractive that resources self-identify and seek out the leaders, asking to join up."

"Boundary-making is a form of competitive advantage that requires moves in at least three aspects of the business ecosystem."

"A striking difference between biological and business ecosystems is that the agitation from late arrivals is far more pronounced in business."

"From the standpoint of the leaders, or potential leaders, competition within the ecosystem becomes as important as the competition at a higher level."

"Companies retreat into their core competencies as new entrants outdo the leaders in certain functions and market segments."

"Margins had collapsed for innumerable players, including IBM. It had left undeveloped the three major potential sources of bargaining power."

"A successful trajectory requires intense management focus and dedication of resources."

"Coping well with the threat of obsolescence is the ultimate challenge for a dominant company."

"The true breakthroughs come through investing in the collection of information and the generation of knowledge and insight that sit conceptually above any of the paradigms."