How Ecosystems Can Defend Against Technological Disruption

Technological disruption versus incumbent firms explained for fundamental investors in 2017 and CEOs of dominant brands by Bryan Hong

• “With today’s unprecedented rate oftechnological disruption, here’s one way that today’s technology giants are defending against being disrupted themselves
• The rise of ecosystems throughout the world’s economies such as those created by Alibaba, Amazon, Facebook and Google create competitive advantages that help these firms to shield against the threat of technological disruption
• As these ecosystems continue to grow and become more valuable to consumers, new entrants with disruptive innovations will be more likely to sell to incumbent firms controlling the ecosystem instead of competing directly with them over the long run, increasing the chances that these incumbent firms will maintain their dominant...