Established businesses have always had to worry about the power of technological change to generate fresh competition. But the question managers will have to ask themselves if they want to survive the current explosion in digital commerce is more gut-wrenching than ever before, warn technology consultants Larry Downes and Chunka Mui. What if a company suddenly appeared that could offer the same products or services as yours, at lower prices, in a way that's more convenient for customers-and at far less cost to itself? In other words, what if the new "killer app" came along and you were the prey?

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