Diminishing Lines in Businesses


Nokia's inability to predict the rise of Smartphones or Kodak's inability to predict the impact of Digital cameras on its conventional business and their subsequent downfall have become case studies in almost every business school. However, these are cases of the past. Such disruptions are taking place even in today's markets, which, if the related industries fail to comprehend and respond to, might prove fatal for their existence. For example, in the recent past the emergence of instant messaging apps like WhatsApp completely killed the SMS business and the rise of VOIP has affected the telecommunication businesses all across the world.

Currently, Google is working on developing smart contact lenses which will monitor blood glucose levels. This technology might hugely affect the
multi-billion dollar diabetes industry. The question that immediately follows is that why are such technologies not being researched by the traditional drugs and devices companies? Recently, Facebook bid for the streaming rights of Indian Cricket matches. Facebook has the reach and market to be the next YouTube and it's intentions to get into the business of streaming live sports should ring alarm bells to the traditional television broadcasters like Star and Sony.

The same is the case with OTT media services. Currently, in
India there is a large consumer base which is averse to the content shown on the Indian television. Over the years, this consumer segment has continuously grown and has gravitated towards western television shows which arguably have more substance and creativity than what is shown on the Indian television. The success of web series like "TVF Pitchers" and "Permanent roommates" etc. have proven that there is a market other than that of Saas-Bahu sagas in India. The recent success of "Sacred Games" - Netflix's first original from India just reaffirms the point. A good creation is a property which can fetch money for extended periods of time. For example, the 90's sitcom "Friends" continues to attract viewers. If the Indian television industry fails to respond to these changes by creating different and meaningful contents, they might very well become the next Nokia or Kodak.

In the west, during the 1980's and 1990's, the conglomerates divested from their other businesses and started focusing on their central business to develop their core competencies. Presently, the idea of a central business or core competency is being redefined. For example, one might argue whether developing a new medical device or streaming live sports matches is Google's or Facebook's core competency. We might very well see these tech giants encroaching into the market share of other industries like those in the healthcare and the telecommunication industries. The question is, are these other industries ready to diversify and face the potential challenge that these tech companies could potentially mount against them? Behold the future, for it holds all answers on who will catch and who will miss the bandwagon!

 

About the author:

This article has been written by Bashob Nandy, a student from PGP  Co '19