Britannica's new free Web site may turn into a good business, but by hesitating and trying to preserve its old business, the company lost valuable time. A new generation of Internet-savvy kids can choose from dozens of portals and other sites aimed at serving their needs. The authors of Blown to Bits contend that the new economics of information give insurgents an advantage over incumbents. In the past, established companies could play a defensive game. These days, playing defence is poor strategy, the authors say.
Information is the glue that holds together the bits and pieces of competitive advantage.
The Internet is melting that glue, they say. In the old world, companies could plan ahead with some confidence that most of their business as well as the competitive landscape would look pretty much the same five years down the road. Not any more. However, some of the old tricks still work. But the authors urge managers to look beyond the obvious examples and imagine how their industry could change.