Tuesday, August 21, 2007

Game Changing

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Creating, or disrupting informational asymmetry (one party knows something important that the other does not) in the marketplace is a game changing strategy. Pick one.

Creating:
Some businesses withhold the details on purpose. A good example of an important detail "the price". They force the customer to take the next step which usually means establishing a more isolated exchange; away from immediate comparison or the opportunity for competitive rebuttal. This is clearly an advantage for the seller. Without any interference, this works quite nicely.

Disrupting:
When the standard strategy for any business / industry is based on the seller's withholding of details, finding a way to provide the details can undo the sellers advantage. If the change in the process and the easy access to information matters (to the customer) enough, the game changes. The Internet looms large here.

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