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Reimagining Industry Boundaries

New business ecosystems are emerging as sector borders dissolve. What will it take to succeed in the new economy? So . . . What is Amazon Exactly? Amazon is the largest internet based retailer in the world, with an annual revenue at $136B last year. Beyond retail, it also produces consumer electronics; Kindle e-readers, Fire tablets, Fire TV, Echo and cloud infrastructure services. If that wasn’t enough, it is also making big moves in AI, and it recently acquired Whole Foods to mark its foray into the grocery business. So what does this make Amazon in today’s business nomenclature...Retailer? Grocery store? Electronics manufacturer? Infrastructure as a Service Provider? This is more than a long-run effort to vertically integrate and it is revolutionizing the way we conduct and understand business.

Redefining the New Normal Amazon is changing the way we traditionally think about companies belonging to a specific industry; similar to the likes of Alibaba and Apple. Alibaba engages in e-commerce, electronic payment services and data centric cloud computing services, while Apple is present in the personal computers, consumer electronics, music and TV industries. Organizations are longer confined or defined by one industry; the concept of standalone industries serving a single market is evolving.

EMBRACING THE “PULL” ECONOMY There are about 70 industries in the S&P 500 Index. Going forward, based on trends in digitization and customer expectations, about 9-10 ecosystems could emerge and diverse industries could be a part of one ecosystem.

© Market Strategy Group, 2017

November 2017 www.

What is Driving this Change? Digital innovation is driving a shift toward business ecosystems that leverage increased connectivity to one another and large pools of data to transform the traditional business models. These ecosystems offer unprecedented access to the capabilities, resources and talent on a global scale that sets the stage for rapid innovation.



The Supply-Side Economy, “build it and they will come,” is no longer the way for incumbents to do business. Instead, it’s all about the pull from the customer. The new age consumer has access to more information and has more options than ever before. Expectations are also higher for specialty and customized products that signal a unique experience or value to buyers.

AI and Machine Learning are changing the way companies operate. Digitization is bridging the gap between industry boundaries by fitting together disconnected businesses; mobile phone, smart watch, television, music and video content in the cloud work together to create a seamless experience.

OUTCOMES Redefined Ecosystems

Shift In Competitors

The lines are no longer clear between industries and sectors, products and services, the physical and digital, developed and emerging economies.

Navigating the New Normal

Companies that dominated within traditional industry lines will have to compete against companies never previously considered.

Reimagine Alliances Companies will have to find complementary or non traditional partners who can help establish a commanding position and advantage; this may be difficult to do if companies continue to work in silos

Leverage Data Effectively It will be imperative for companies to develop capabilities for collecting, storing, analyzing and using data for actionable business insights

Build Strong Customer Ties Customers will need to be engaged in new and multi-channel approaches; partnerships and the typical customer-buyer relationships will be redefined

About Market Strategy Group Market Strategy Group sees business differently. To us, winning isn't about going from Point A to Point B. It's about aligning three distinct dimensions — business direction, people & process, and markets & customers — to drive growth. Getting this right is critical to your bottom line. And it’s more than an operational challenge, it is often a strategic issue. We help organizations get to an answer customized to address your unique needs. We should chat if this is a challenge: Alex Kruzel (

© Market Strategy Group, 2018

February 2018 www.

Reimagining Industry Boundaries  

Organizations are longer confined or defined by one industry; today's major growth companies are vertically and horizontally integrating. Th...

Reimagining Industry Boundaries  

Organizations are longer confined or defined by one industry; today's major growth companies are vertically and horizontally integrating. Th...