Innovation can deliver important benefits to competition

In the late 1880s Almon Strowger👨🏻‍💼 was THE ONLY UNDERTAKER IN TOWN 💀, so he ran quite a profitable business 🙊. Suddenly he noticed his work had dropped off considerably 📉 , and that there was a new undertaker in town 😳.
Curious as to why so many were going to this new undertaker instead of him 🤔. Strowger found out it was because the TELEPHONE OPERATOR ☎️ was married to this other undertaker‼️ When anyone called for Stowger’s business, she would direct them to her husband. (At that time when anyone placed a call they had to first call in an operator who would then connect them to their intended party).

So, Strowger decided to invest on R&D 👨🏻‍🔬. He worked to come up with an INVENTION that would allow callers TO CONTACT ONE ANOTHER DIRECTLY, without the need of a human intermediary 😠

In 1892 Strowger patented his automatic telephone exchange and left the undertaking business to mass-produce his new invention. Strowger soldhis patents in 1896 for $1,800 and sold his share in the Automatic Electric Company for $10,000 in 1898. Hispatents subsequently sold for $2.5 million in 1916.

Strowager’s invention would be the common system used by telephone companies in the U.S. for many years to come. He allowed for a REVOLUTION in telephone technology, and ensured that never again WOULD AN OPERATOR “MISDIRECT” 😜 PEOPLE.