Two of the competitive dynamics models that businesses use to grow their company are DYB (Destroy Your Business) strategy and the GYB (Grow Your Business) strategy both strategies has advantages and disadvantages, but both have the same goal, purpose and end state; and that is to grow and improve the business.
The Destroy Your Business (DYB) strategy forces a company to internally examine the organization and the products and services it provides. The company will assess and evaluate the processes, products and services; it will take the evaluation and dissect the strengths and weakness of the company and determine how its competitors can expose its weakness and eliminate the competitive advantage that the company has established. To eliminate …show more content…
The GYB process can use the feedback from DYB or other assessments to determine how the company can improve its current products, services or increase ways to expand its current product and service offerings to new customers. It looks to grow its competitive advantage by increasing and improving current offerings, not by examining its weakness.
A third strategy is the Cannibalization strategy; it is similar to DYB because it does negatively impact the business. “Market cannibalization is the negative impact of a company's new product on the sales performance of its existing and related products. It refers to a situation where a new product "eats" up the sales and demand of an existing product, potentially reducing overall sales, even if sales of the new product are increasing. This can negatively affect both the sales volume and market share of the existing product.” …show more content…
With the rapid changes in technology (internet access and internet speed) the company realized that it must leverage and grow with technology, the only way to do this was to cannibalize its current business model of delivering DVD’s through mail delivery. This service did not immediately show return on investment, “the result was tumultuous and triggered a free fall in its share price. It slipped from $137 to $69 (March 2010)” (foundingfuel). Netflix cannibalized and destroyed its DVD business so it could leverage technology to improve and increase its competitive advantage by offering streaming services. The risk payed off as Netflix stock has increased drastically from 2010 when it was $137 to today as its stock price is 199.97. (market
The Destroy Your Business (DYB) strategy forces a company to internally examine the organization and the products and services it provides. The company will assess and evaluate the processes, products and services; it will take the evaluation and dissect the strengths and weakness of the company and determine how its competitors can expose its weakness and eliminate the competitive advantage that the company has established. To eliminate …show more content…
The GYB process can use the feedback from DYB or other assessments to determine how the company can improve its current products, services or increase ways to expand its current product and service offerings to new customers. It looks to grow its competitive advantage by increasing and improving current offerings, not by examining its weakness.
A third strategy is the Cannibalization strategy; it is similar to DYB because it does negatively impact the business. “Market cannibalization is the negative impact of a company's new product on the sales performance of its existing and related products. It refers to a situation where a new product "eats" up the sales and demand of an existing product, potentially reducing overall sales, even if sales of the new product are increasing. This can negatively affect both the sales volume and market share of the existing product.” …show more content…
With the rapid changes in technology (internet access and internet speed) the company realized that it must leverage and grow with technology, the only way to do this was to cannibalize its current business model of delivering DVD’s through mail delivery. This service did not immediately show return on investment, “the result was tumultuous and triggered a free fall in its share price. It slipped from $137 to $69 (March 2010)” (foundingfuel). Netflix cannibalized and destroyed its DVD business so it could leverage technology to improve and increase its competitive advantage by offering streaming services. The risk payed off as Netflix stock has increased drastically from 2010 when it was $137 to today as its stock price is 199.97. (market