Each Of These Disrupters Created A New Value Chain

Each of these disruptors created a new value chain and usually worked with new customers, rather than the incumbents.This has been true through-out history, ie transport. In the 18th century, the development of canals resulted in a monumental change in transporting goods. Previously goods traveled overland by road by horse and dray; this transport method of necessarily limited quantities was very slow and dangerous, ie rough roads limited the types of goods that could be transported effectively; the goods need to be unbreakable. The use of canals, however, resulted in larger quantities of goods being transported more quickly, with less breakage risk. It is estimated (Simon Winchester, 2001) that transport costs were halved by using canals This was followed by the introduction of railways. The railway network has all the benefits of the canals, was quicker and able to carry larger quantities. Thus the effectiveness advantages of canals disappeared. Now they are tourist attractions.

 

 

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