It might not be your competitors who steal your lunch

Who will eat your lunch? - Photo credit: D Sharon Pruitt via Flickr

In the software world, it might not be your competitors who steal your lunch. It might be a company who doesn’t even compete for the same customers and revenue, who provides a free product so you end up losing out.

 

Imagine you are a mapping company and which means you create, update and sell maps – like the Ordnance Survey.  But look out – see who is now eating your lunch and providing maps for free:

Bing provides maps for free – that’s because Microsoft makes its money on desktop software and increasingly enterprise software.

Google provides maps for free – that’s because its primary revenue model is ads on search results

TheAA provides maps for free – it’s primary revenue model is roadside assistance insurance.

So, wow, my old revenue model just got shot to pieces but not by direct competitors undercutting me, but by indirect competitors.

So, in the software market, where feature copying is rife, (check out this discussion on Playfish v Zynga) everybody who is not my friend… is my enemy?

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One thought on “It might not be your competitors who steal your lunch

  1. Dave Nattriss March 8, 2011 at 4:19 pm Reply

    So long as the consumer ends up winning, it’s all good 🙂

    People matter more than organisations!

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