An important aspect of understanding your business ecosystem is knowing your position within it (positioning), whether you hold a higher or lower (subordinate) role, and whether your offerings are substitutes or complements. Netflix started as a DVD rental service. With the rise of online streaming, Netflix saw it as a replacement for DVD rentals. Kimbap and Ramen are complementary goods, but Ramen and Udon are substitutes. This is why, even when setting up a snack bar, paying attention to the menu is crucial. Complementary goods increase sales, while substitutes are more likely to lead to no change or even a decline in sales. - Joseph’s “just my thoughts”
The Roman alphabet constructs words in a single direction by using ordered combinations of 26 distinct letters. DNA also reveals life by altering the sequence of the four bases in one direction: A, G, T, and C. The West has developed novel concepts by combining basic units, while the East has refined them based on relative relationships. For instance, in Asian scripts, Chinese characters can convey different meanings by altering the length or position of a single stroke within a character. These two approaches account for most methods of creating something new. - Joseph’s “just my thoughts”