The Gist: In order to stay competitive and protect profit, companies must continually innovate and do so strategically. Strategic innovation means identifying what differentiates a company from its competitors (what Moore calls a company's "Core") and focus company efforts and resources accordingly. Too often, however, companies focus too heavily on the basic points of competition (what Moore calls "Context"), committing resources to activities that are expected and necessary but have a low return on investment. Continued focus on Context at the expense of Core leads to commoditization of services and the erosion of profit.
Ebook Implications: As new competition enters the publishing market attempting to change the industry's business model, incumbents must identify what truly differentiates its services and make smart, strong investments.
