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According to Clayton Christensen, a professor at Harvard Business School, it wasn’t a lack of trying that took down DEC. It was the inflexibility of the business model they had so long relied upon:
“Digital Equipment Corp. had microprocessor technology, but its business model could not profitably sell a computer for less than $50,000. The technology trapped in a high-cost business model had no impact on the world, and in fact, the world ultimately killed Digital. But IBM Corp., with the very same processors at its disposal, set up a different business model in Florida that could make money at a $2,000 price point and 20% gross margins—and changed the world.”