Wednesday, September 5, 2007

Kill Goliath in the cradle

In strategy today we discussed network effects and how early entrants to an industry generally come out the winners, but first entrants generally do not. This topic prompted several good quotes from my strategic management prof today: "The first entrant just tenderizes the steak, the other early entrants come along and eat the steak." This was later followed by an analogy about David and Goliath relating to a case on eBay we were discussing. He ended class with the recommendation that actually, Goliath would crush David like a bug, grind him into the ground and really you want to kill Goliath in the cradle.
Point made.

On the opposite end of the bouncing around the room perspective, my organizational behavior professor stood in front of our class for five minutes silently, just looking around the room. After about two minutes the class was settled and silent and staring back. I checked my email, then the clock and at five minutes I raised my hand, was called upon, and asked if we were going to start the class. And he did. When he does this exercise every year there is always some delay. The average delay is 7 minutes, the longest a class has gone is 12. He used it to transition into a discussion on norms and company values.

I attended the first Georgetown Women in Business club meeting during lunch today (free lunch, always good) and started to fill up my calendar with events. Busy bee I am!


m@ said...

Interestingly enough, we discussed the low-cost airline carrier market today in our strat class, yet the first market entrant is still going strong (Southwest). Hmmm. :)

HairTwirler said...

Well, can the low cost airlines really be considered a separate market from the legacies?
Low cost airlines seem to be a strategy standard these days!

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