Saturday, March 21, 2009

The Genius of Schumpeter - Part II

Here's another one that'll rock your boat - it certainly made me think!

A firm comes into existence on the basis of an idea. It remains in existence until the idea is relevant. After that, it has to either find a new idea, or cease to exist.

Think about it - Coca-Cola's idea was (and is) to provide refreshing beverages.

It is not (it was) to provide fizzy, carbonated, sugar-full drinks . So when Coke figured out that this was not was being demanded, it changed it's idea. Leading to other, more healthy drinks.

Coke changed it's idea, and succeeded.

What's your idea? Is it relevant?

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