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Reinventing Your Business Model [Download: PDF] [Digital]

Clayton M. Christensen , Mark W. Johnson , Henning Kagermann
5.0 out of 5 stars  See all reviews (1 customer review)

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5.0 out of 5 stars Good Information - December 19, 2009
Format:Digital
In three years the iPod/iTunes combination became a nearly $10 billion product line, accounting for almost 50% of Apple's revenue. Market capitalization jumped from around $1 billion in 2003 to over $150 billion by late 2007. Apple essentially gave away the low-margin iTunes music to lock in purchases of the high-margin iPod.

Retail discounters such as Target and Wal-Mart now account for 75% of the total valuation of the retail sector, low-cost U.S. airlines have gone from nothing to 55% of the market value of all carriers.

Breakthrough products rarely emerge from established businesses because a radically new product usually needs a new business model.

(Originally published in the December, 2008 HBR.)
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