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ontract research anizations Contract mfrs PBMs JVs/ licensing ELECTRIC UTILITIES COMPUTER INDUSTRY ATT, MCI and Sprint … fragmented radically Microprocessors, integrated circuits, memory chips Computers Operating systems Applications software Marketing, sales, and distribution Common standards Time based petition 1995 Intel Motorola AMD Cyrix Compaq Dell Apple Packard Bell IBM DOS and Windows UNIX Mac OS OS/2 Microsoft Office WordPerfect Others Retail Superstores Online Mail order NeXt IBM , Digital 1997 Primary fuel Power generation Trading Distribution Backward integration to reduce risk Forward integration to open supply channels Scale through focusing on huge power plants Synergy through bundling capabilities of general trading and energy business New services for the customer Ruhrkohle Mobil BP Shell National Power (UK) Electrobel (Belgium) RWE (Germany) Norsk Kraftmegling (Norway) Enron United Utilities (UK) South ern Water Eastern Electricity (UK) Stadt werke Munch en (Ger many) 1990 1995 1985 1990 Statkraft (Norway) Oslo Energi (Norway) EVO (Germany) IVO (Finland) MANY INDUSTRIES EXPERIENCING A REDEFINITION OF COMPETITIVE BOUNDARIES MASSIVE REDISTRIBUTION OF THE MARGIN POOL IS OCCURING Digital Photography Example Camera Film Equipment Paper, chemicals Photofinisher Reprint/ enlarge Store/ display Share with others Processing Analog value chain – Kodak and Fuji domi