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Dell and Perot: The end of a business model (innovation)

Patrick Stähler

Dell announced on September 21, 2009 that it will acquire Perot System for $3.9 billion. Dell was the poster child of business model innovation. It had “invented” the direct sales model for PCs. Instead of going via resellers Dell sold its computers directly via telephone or the Internet to its customers. Now, Dell is extending its traditional business into services….

Business Model Innovation and the Red Queen Effect

Patrick Stähler

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…