Chains Raise The Quality of Whole Industries

This is a great article about the value of substitutes in different industries.  As a product manager you should always thinking about what products are a substitute or a compliment to your product.  Even if the primary substitute is non-consumption, how do you have to build your product to get people off their couch and to make them take an action.

It is worth remembering that many unfashionable large businesses create value in ways that are often under-appreciated. No one will ever write gushingly about McDonald’s or Starbucks or PremierLodgeExpress. But what these large chains do is valuable, even if you never use them. They effectively raise what I call the ‘threshold of crappiness’ in the sectors in which they operate. To operate successfully as a coffee shop or a sandwich bar or hotel (or a minicab firm), you have to be at least as good as a chain or else you fail. This raises the bar for everyone. You can get better coffee in a truckstop now than at Claridge’s in 1990.

Spectator

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Author: Jay Fisher

I'm a product guy focused on building great consumer experiences. Gathering quick feedback and building internal consensus by iteratively improving on minimally viable products. My background is in consumer products and finance, I greatly enjoy tackling the challenges involved in financial services and technical product management I love making new professional acquaintances. Reach out (public@jayfisher.info) if you want to talk technology, business, product management, or agile.

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