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1、FALL2013VOL.55NO.1StrategicChoicesinConvergingIndustriesByFredrikHacklin,BorisBattistiniandGeorgvonKroghREPRINTNUMBER55116STRATEGYCompaniessuchasApple,GoogleandSamsunghaveincreasinglydominatedthesmartphonemarketandappeartobeshapingitsfuture.StrategicChoicesinConvergingIndustriesA
2、sindustriesconvergeandseeminglyunrelatedbusinessessuddenlybecomerivals,managersmustunderstandthenewTHELEADINGchallengesandthelong-termimplications.QUESTIONBYFREDRIKHACKLIN,BORISBATTISTINIANDGEORGVONKROGHHowcancompaniesprotectthem-selveswhenindustriesINTHERELENTLESSEVOLUTIONoftech
3、nologyandmarkets,manyindustriesareintheconverge?midstof,orareapproaching,majorreconfigurationsoftheirfundamentalarchitecturesandtheFINDINGSwaycompaniescapturevalue.1Thechangesarewellunderwayinbiopharma,nutritionproducts,Understandthehealthcareandenergy,wheretechnologiesanddistinc
4、tknowledgebasesarechangingandconverg-factorsdrivingconvergence.ing.PerhapsthemostdramaticexampleofsuchconvergenceistakingplaceintheboomingspaceSelectyourstrategicoftelecommunications,informationtechnology,mediaandentertainment,whichmanypeoplepath:technologypioneer,marketnowrefert
5、oasasinglefield,the“TIME”industries.2TheTIMEindustriesarecharacterizednotattacker,ecosystemaggregatororonlybythevarietyofnewtechnologicalproductsandservicesbeinglaunchedatanever-increasingbusinessremodeler.pacebutalsobythesurgingcomplexityoftheirmarketsandhowcompanieswin.Assomeco
6、mpa-Strategicchoicesnieshaveexpandedtheirscope,othershavebeenforcedtorethinkandretooltheirstrategies.inconvergingindustriesarenotInmanyways,theTIMEexampleoffersausefulmodelformanagersinotherindustrieswhereetchedinstone.COURTESYOFGOOGLE,APPLE,SAMSUNGFALL2013MITSLOANMANAGEMENTREVIE
7、W65STRATEGYconvergenceislessobvious.(See“IsConvergencenewwaytodesigntheuserinterface—beginningHappeninginYourIndustry?”)withApple’siOS,followedbyGoogle’sAndroid—Theamountofchangethatthetelecommunica-everythingelsebecameoutdated.Consumerstionsandrelatedindustrieshaveseeninrecentye
8、arspreferredecosystemsbasedonmarket-driv