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03 May 2013

The Pathology of Revolution

Revolution are seldom made by insiders. A few exceptions prove the point that business revolutions are mad by outsiders. Typically also they are made not by successful giants but by small generally under capitalized and inexperienced outsiders.

One of the most remarkable recent examples is ocean cargo containerization. This revolution, which is still only in its infancy, did not emanate from the shipping giants American Export Isbrandtsen Lines, or United States Lines, or Grace Line, or Cunard, or Matson, or Moore McCormack. It was launched and led by Malcolm Mclean, then president of McLean Trucking Co. He had none of the constipating sentimentality that leads one to refer to a ship as a "she". He viewed ships as a giant bridge for his trucks. So in 1956, with four old tankers, he launched Sea/ Land, now the leader in ocean cargo containerization.

Other examples of big new industries and big new ways of doing things that emanated from the small beginnings of outsiders are almost endless : tape recorders and magnetic tape, motels, paperback books, television program production, frozen foods, vinyl tile, auto rentals, polarized glass, aluminum die casting, affinity group flying, helicopters, all purpose credit cards, supermarkets, plastic bearings, single handle faucets, rockets, chemical hair setters, hair coloring, "instant" photo developing, fast service gasoline stations, paper "cans," electronic copying. For the hopeful men of large corporations who annually approve large R % D budgets, large test market budgets, and large new business budgets, the list is too long for comfort.

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