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Law of the jungle.(Economics And Regulation)

The American Enterprise

| June 01, 2004 | Lehrer, Eli | COPYRIGHT 2004 The American Enterprise, a national magazine of politics, business and culture (TEAmag.com). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Marco Iansiti and Roy Levien, "Strategy as Ecology," Harvard Business Review, March 2004 (hbr.org)

Microsoft and Wal-Mart, both great avatars of American capitalism, appear to utterly dominate their respective industries. Marco Iansiti, a Harvard Business School professor, and Roy Levien, a business consultant, attribute these companies' success not to their aggressive practices but to business strategies that take into account the health of the commercial "ecosystems" in which they operate.

Instead of trying to extract as much revenue as possible from other companies in the same industries, Microsoft and Wal-Mart follow business strategies that turn them into industry "keystones" that help other companies doing similar things. For example, in a diverse ecosystem of nearly 40,000 firms that sell, work with, or otherwise link to Microsoft's products, only five out of every 1,000 employees, and a roughly proportional share of profits, belong to Microsoft itself. By providing a platform--the Windows operating system and related development tools--Microsoft helps other companies perform specialized roles, like providing related software, or manufacturing the ...

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Source: HighBeam Research, Law of the jungle.(Economics And Regulation)

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