Israeli Kindergarten. Dual-income couples often arrived late to pick up their children. As a result, the kindergarten implemented a rule that parents would face a fine if they were late; however, even though this introduced a penalty system, it also led to more delays in pickup times. By replacing feelings of guilt with money, paying a fee for being late became the new norm. After recognizing the mistake and removing the fine system, what happened? More parents started arriving late. When money becomes involved, the exchange of value fundamentally changes the nature of the relationship. And once that change occurs, it doesn’t revert. - Joseph’s “just my thoughts”
Netflix initially started as a DVD rental service and grew, but it soon encountered a crisis with video streaming technology. Nevertheless, it wasn’t feasible to abruptly abandon the existing business and transition to a digital distribution model, highlighting the significant conflict involved! Video streaming technology is not a complementary service to DVD rental; rather, it serves as an alternative. When expanding or improving a business, it’s crucial to clearly understand the defining attributes of the target product or service. Burgers and French fries complement each other, while burgers and chicken sandwiches are substitutes. - Joseph’s “just my thoughts”