Arm reminds me of the story of Honda.
Honda began making small engines, back in the 60’s. They were the
best small engine specialist, and they climbed up the value chain
moving into cars later on. Look at them now.
Honda began making small engines, back in the 60’s. They were the
best small engine specialist, and they climbed up the value chain
moving into cars later on. Look at them now.
Arm specialized in small processors for
modems, cell phones, and small electronics. Now they are the most
used processors since consumer electronics heavily depends on their
size and niche.
modems, cell phones, and small electronics. Now they are the most
used processors since consumer electronics heavily depends on their
size and niche.
If you ask yourself, could
establish giants go backwards the value chain? Then you hit upon a
TON of cognitive bias and very strong current working against you. In
Finance: don’t fix whats broken, focus on core competence, specialize
specialize specialize (because it makes money, squeeze it for all its
worth). Finance actually dictates strategy when you start making a
lot of money. The more money, the more tunnel vision a company can
get.
It takes a dictator and almost a cult
of personality to change the tide in a company to focus on things
nobody wants to realize. So companies who’s lost their “Dictator”,
like Jobs or Gates, can’t swim against the current if there are clues
to where the market will be next.
of personality to change the tide in a company to focus on things
nobody wants to realize. So companies who’s lost their “Dictator”,
like Jobs or Gates, can’t swim against the current if there are clues
to where the market will be next.
This is not bad, even for the board
members BTW. It allows for innovation, and stake owners/holders are
always free to cash in their stake and jump on the next “big
thing”, before it becomes big. The more efficiencly a large body of
workers and individuals do this, the “softer” the landing when
there is a transition.
members BTW. It allows for innovation, and stake owners/holders are
always free to cash in their stake and jump on the next “big
thing”, before it becomes big. The more efficiencly a large body of
workers and individuals do this, the “softer” the landing when
there is a transition.
If the tech giants focused on transition to the next wave of tech, it will be a soft landing for
that company as well and a softer landing for the
stakeowners/holders.
that company as well and a softer landing for the
stakeowners/holders.
Going back to Value Chain Climbing, I
realize there is a LOT of data to be had in the bottom of the value
chain. As a Logistics company for BPOs, there are TONS of data to
mine. Its funny that the data we get is something most leaders tend
to spend good money on. Of course, unlike these larger companies, we don’t have money to spend or risk on taking advantage of these leads.
realize there is a LOT of data to be had in the bottom of the value
chain. As a Logistics company for BPOs, there are TONS of data to
mine. Its funny that the data we get is something most leaders tend
to spend good money on. Of course, unlike these larger companies, we don’t have money to spend or risk on taking advantage of these leads.
We have an “experiment” going on right now, and it seems to be paying off. The market we are in is really screwed up by the education demographics. I foresee other will catch on, and copy the method. By that time, we should be in the next tier or having invested on capital that allow our unorthodox methodology to be very competitively cost effective no one without propriety data can replicate. Sucks to have taken over after the two previous management nearly ruined the company 🙁 still paying for their mistakes (and having nightmares having to deal with this people).
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