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”
Frugality and efficiency are complementary and must be balanced. Emphasizing savings can reduce efficiency, while emphasizing efficiency can lead to waste. In the world, when you emphasize one aspect, unintended side effects often occur in unexpected areas. Although they are invisible, various elements of the world are closely interconnected, and there are many situations in which humans do not understand these relationships. Achieving a balance among all elements at the proper level is a significant challenge. Leaders are those who undertake this difficult work. - Joseph’s “just my thoughts”