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In this insightful article, Kara Swisher notes that one big reason that Instagram’s co-founders, Kevin Systrom and Mike Krieger, decided to leave was that the popular site was pulling users away from the “big blue” platform that is the core Facebook product.  Clanging sounds of early warnings of early-stage fading of advantage!

Leaders can respond two ways when one of their businesses threatens to outshine another.  They can be curious as to why customers are finding one offering more attractive than another and take those lessons to heart (hello, iPhone, bye bye iPod).  Or they can try to build a moat around the older business, essentially hoping to keep customers hostage.  Hostages may stay with you for a very long time, but eventually someone will show them the escape hatch and they will flee.

An even bigger issue with this situation is another motif that plays out in competitive dynamics.  By losing those now-wealthy Instagram founders, Facebook has just unleashed two demonstrably capable and social-network savvy entrepreneurs into the wild.  They’re young.  They’re disappointed with their treatment at the hands of their former employer.  They know the business.  And they are highly likely to become tomorrow’s most relevant Facebook competitor, particularly now that the negatives of Facebook’s “we sell ads” business model are growing in the eyes of the public.

Why do I think so?  Well, the history of Marc Lore, Amazon and Wal-Mart is illustrative.  Lore co-founded a company, Quidsi (famous for its diapers.com brand) that Amazon eventually bought for some $550 million.  After an acrimonious couple of  years under Jeff Bezos’ thumb (sound familiar?), Lore went out on his own with a new startup, Jet.com, motivated, some observers say, by a thirst for revenge.

Today, Lore is gunning for his ex-employer, big-time, with some reported success.

I won’t be the least bit surprised if the next big thing in social media is introduced by Systrom and Krieger.

Leverage
Point
“8Ps” of StrategyOpportunity
for Disruption
Recommended Leverage Points
Position- The farmers, individual and corporate, that you are targeting.

- The need of the agricultural industry that you seek to fill.
3- What technologies do you control that can help you tap into market
segments that you previously thought unreachable?

- What are the potential business alliances you could think about with key players in the segment to serve your customers with integrated solutions? (Serving customers with more integrated solutions example: serving farmers with fertilizers, crop protection and other).
Product- The products you offer, and the characteristics that affect their value to customers.

- The technology you develop for producing those products.
8- What moves are your organization taking to implement Big Data and analytics to your operations? What IoT and blockchain applications can you use?

- What tools and technology could you utilize or develop to improve food quality, traceability, and
production?

- How can you develop a more sustainable production model to accommodate constraints on arable
land?

- What is the future business model needed to serve new differentiated products to your customers?
Promotion- How you connect with farmers and consumers across a variety of locations and industries.
- How to make consumers, producers, and other stakeholders aware of your products and services.
8- How are you connecting your product with individual and corporate farms who could utilize it?
- How could you anticipate market and customer needs to make customers interested in accessing your differentiated products?
PriceHow consumers and other members of the agricultural supply chain pay for access to agricultural products.7- What elements of value comprise your pricing? How do each of those elements satisfy the varying needs of your customers?
Placement- How food products reach consumers. How the technologies, data, and services reach stakeholders in the supply chain.9- What new paths might exist for helping consumers access the food they desire?
- How are you adapting your operations and supply chain to accommodate consumers’ desire for proximity to the food they eat?
- How could you anticipate customer expectation to make products more
accessible to customers/agile supply chain?
- Have you considered urbanization as a part of your growth strategy?
Physical
Experience
- How your food satisfies the needs and desires of your customer.
- How the services you provide to agribusiness fulfill their needs.
9- Where does your food rate on a taste, appearance, and freshness
scale?
- Could the services you provide to companies and farms in the agriculture industry be expanded to meet more needs?
- What senses does your food affect besides hunger? How does your
customer extract value from your food in addition to consumption?
Processes- Guiding your food production operations in a manner cognizant of social pressure.8- How can you manage the supply chain differently to improve traceability and reduce waste?
- How can you innovate systems in production, processing, storing, shipping, retailing, etc.?
- What are new capabilities to increase sustainability (impact on the environment, or ESG) components?
People- The choices you make regarding hiring, organizing, and incentivizing your people and your culture.- How are you leveraging the agricultural experience of your staff bottom-up to achieve your vision?
- How do you anticipate new organizational capabilities needed to perform your future strategy (innovation, exponential technologies needed, agile customer relationship, innovative supply chain)?
- How do you manage your talents to assure suitable development with exposure in the agrifood main challenges/allowing a more sustainable view of the opportunities/cross-sectors?
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