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Money as the only differentiator

“We have to pay so high salaries otherwise we don’t get the right people” is often heard from firms even in the crisis.  Particularly the failed banking industry was very good in this salary death spiral. Salary was seen in this market as the only differentiators with great results. I always wondered why the so highly paid managers could not…

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Changing strategy reality

This video shows extremely well why companies just not need to do more of the same (MOTS) since it leads to more clutter. More clutter in features, more clutter in products, more clutter in advertising, more clutter in PR messages, more clutter of everything. In this strange world of more of everything simplicity and clarity in your business model helps…

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Amazon’s Kindle and new business models

Amazon recently introduced the new Kindle 2, a wireless reading device for books or an e-reader. While the German publishing industry at best sees the Kindle as a new distribution channel [update: link no longer available] for its current content and some even complain about the high cost of ebooks the Americans start thinking about what new things you can do…

Business Model Innovation and the Red Queen Effect

The blog is about business model innovation or innovation in strategy, some name it strategic innovation. The point is very simple. Most companies try to differentiate themselves from their competitors by better products or improved processes leading to a better cost structure. The problem is that their competitors do the same thing at the same time so after a firework…