This is “Chapter Summary”, section 6.6 from the book Competitive Strategies for Growth (v. 1.0).
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Let us summarize the chapter’s key concepts by returning to the Kindle example from Chapter 5 "Sorting Value". What are the implications of the growth strategy framework for Kindle’s possible outlets for growth? We can get some initial speculative insight—subject, of course, to the need for additional research.
There are hundreds of medium-sized (or smaller) publishers available within and outside of the United States. Amazon wisely is going after the smaller guys, too, with its recent royalty (and rights!) heavy contract option appealing to self-publishers, a group Apple didn’t acknowledge (during a keynote address).
The development of reading-related applications and more extensive study, which allowed the sizing of benefit and interest segments in the reading market, could be important vehicles for reaching readers more effectively than Apple does.
The importance of the 3-Circle framework is that it allows a systematic walk-through of the dimensions of value currently available on the market and a rigorous review of growth strategy questions with emphasis on all the important value dimensions in the market (but current, known dimensions and those not so well known). The goal is to stay focused on how our organization might build a unique position by developing important value for customers that competitors cannot match. A critical issue in this is the notion of capability—once we develop ideas for building growth strategy, how do we execute them? Capabilities, resources, and assets are the focus of the next chapter.