Select Page
May 28, 2021
Ecosystems

A common strategy is to build out a product ecosystem.

Printers to go with computers.

Chips to go in phones.

That doesn’t mean there’s no shared resource they pull from.

 

From a business perspective, it makes sense because it allows for maximum control over the product experience.

From a customer retention standpoint, it’s effective to an extent because of the cost to exit.

  • New dongles.
  • Time to learn a new system.
  • Access to new charging ports.
  • Green bubbles.
  • Changing an aspect of one’s identity.

Once people are bought into an ecosystem, they’re likely to go along with whatever changes the company makes.

They’ll make some people mad with the direction they choose, but most will stick around because it’s part of who they are.

It’s driven by advancement in competition.

We’ll make something great, and then someone else will make something better, and so we better stay at the cutting edge.

 

The alternative is advancement in cooperation.

Shared resources, understanding, and mission to make things better.

Interoperability – plays nice with others.

Incompatibility – doesn’t.