Advantage from the edge

Most business have a core product or service that they focus on. But what separates the clever business from the ordinary one is its perspective on how the edge can support the center.

In more plain terms this means that while some companies abstain from pursuing new opportunities with a reference to focusing on the core, the ultimate winners identify how they - by including opportunities at the edge - can support their core business.

No platform is beater suited for edge exploitations than the web. It’s everywhere in (well almost) every thing, and the cost of developing and implementing a strategy in this area is rapidly decreasing. So not only can companies explore the edge using the internet - they can also do so with comparable little risk.

A great example is Wal-Mart. Wal-Mart’s core business is running supermarkets at huge profits. Then why do they launch classifieds site, Oodle? John Sviokla provides some thoughtful clues on Harvard Business Publishing:

…it allows Wal-Mart to better understand consumer demand. They already dominate all other retailers in their ability to spot trends, analyze data, and capture demand – from hurricane stock ups to college car washes they seem them coming.

My bet is that they have ramped up Oodle.com so that they can get access to a new frontier of insight, which will come as they analyze the used market, and demand for items they don’t carry. They can see the used price for things they sell, for things that complement things they sell, and for things they don’t sell but may be good indicators of consumer sentiment – like cars.

I think this is to the point. And it serves as a great example of using the web to include the edge into ultimately reinforcing ones core business. So what if Oodle in itself doesn’t become a huge profit center? Chances are that the data from monitoring the use of Oodle will be worth much more to Wal-Mart anyway.

How does your company use opportunities at the edge to support your core business?

Vad NU! is a consultancy company owned by Mads Kristensen and specialized in helping clients take advantage of the business opportunities created by new media. Click to learn how I can help you and your company.