The Collapse of the Middle

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+ Muder Chiba

Transcript of The Collapse of the Middle

Page 1: The Collapse of the Middle

+ Muder Chiba

Page 2: The Collapse of the Middle

+The Middle

Environmental forces shape the pressures that come to bear

on an industry

Players originally migrate to the middle in pursuit of a

superior ‘value’ proposition and an eventual ambition to move

to the top of the value chain.

But the middle becomes over-crowded as it is the

most attractive space in the short term. With the

lowest entry barriers.

Muder Chiba

Outcomes and Causal factors

intertwine to create the vortex

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+The Players’ Dilemma

Market Players contribute to the collapse by :

Staying too long in the middle

Outsourcing away the craft skills

Pipe-dreaming the High Value-end

Chasing short-term profit humps

Commoditizing their brands

Mis-reading value migration pathways

Muder Chiba

Playing the Current whilst creating a

Playbook for the Future

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Essential Question for MR Players

Where is your Value Arbitrage ?

Muder Chiba

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Muder Chiba

Wisdom

Efficiency

Where is your Value Arbitrage ?

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Muder Chiba

Creative Thinking

Critical Thinking

Where is your Value Arbitrage ?

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Muder Chiba

Value

Volume

Where is your Value Arbitrage ?

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Design

Engineering

Where is your Value Arbitrage ?

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Multiplicative Thinking

Additive Thinking

Where is your Value Arbitrage ?

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Craft

Assembly

Where is your Value Arbitrage ?

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Muder Chiba

“ For new corporate giants—such as

Google and Facebook—a concern with

steering value their way seems to have

underpinned their strategies. These firms

do not compete in a sector; they

work on a sector, they shape their sector.

They do not offer a value proposition; they

push value to their part of the ecosystem.”

https://hbr.org/2013/07/how-to-drive-value-your-way

Shape the Future

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Muder Chiba

Shape the Future

I skate to where the puck is

going to be, not where it has

been.- Wayne Gretzky

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Action

1.Map your Value

2.Visualise Future

Value flows

3.Arbitrage specific

Positions

Muder Chiba

Where is your Value Arbitrage ?

Shape the Future

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[email protected]

http://www.slideshare.net/MuderChiba/market-

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Shape the Future