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Part Three – How to Build Success out of Commoditisation

Tuesday, 22. March 2011 20:37

Beware The Vortex of Doom!

Competition is heating up, your suppliers exerting upward pressure, your customers are exerting downward pressure, your products and strategies are being imitated.

Sooner or later no matter how successful your product based business is, you will hit a wall unless you are very lucky.

So how did Apple beat this game?  Lets look at the smartphone market.

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Category:marketing, Nokia, Pricing, Strategy | Comments (4) | Author:

Products to Services – Part Two – Why??

Thursday, 18. November 2010 21:50

In my previous article I discussed the concept of value and how important it discard old ways of thinking in terms of products and costs, to re-focus around the consumer.

In this article, I will further the case for considering services in your business by distinguishing products from services.

Part Three, will look at the success of the Apple Strategy and some real examples of real profit margins including from the sector spread Woolworths enterprise.

So Why Services?

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Category:Economy, Market, Pricing, Strategy | Comment (0) | Author:

Transforming Your Business to a Services Business – Part One

Wednesday, 20. October 2010 21:41

I have received a number of inquires from clients and readers about services based business models and how to implement one.  In response to this interest, I have developed a few strategies and illustrations to help you.

In this multipart series, I will take you through what services are, and how you can build a services based business or transform your existing product based business, in to a services based business.

So what are services?

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Category:Pricing, Strategy | Comments (1) | Author:

Targeted Advertising – Utopia or Dystopia?

Thursday, 8. July 2010 9:19

From across the Tasman Sea comes word that that Apple is ramping up its targeted advertising platform.  This will be the great battleground for the next decade, as the likes of Google, Apple and even supermarkets and airlines with loyalty schemes battle it out for supremacy in the customer profile market.  Think what happens every time you use a fuel docket, every time you pay for groceries and leave a footprint with your loyalty card.  Make no doubt, Big Brother is watching you.

Apple uses customer profiles to target mobile phone adverts – Business – NZ Herald News.

But is this necessarily a bad thing?  I am not convinced it is.  For years we have been giving up our most sensitive information to anonymous government and private entities who then decide if we should have security clearances, credit cards, welfare, tax refunds or be pursued for an unpaid parking fine.  Citizen tracking has long been an integral part of civilisation, and at times used for bad.  However, if used wisely, and if citizens retain control and remain informed of how their data is being used, it could be a tool for enormous good.

And by good I refer to realisation of the dreams of capitalism – the most efficient allocation of limited resources for the good of humanity – driven by needs and wants to provide resources to provide the greatest value.  No longer will we be harangued with irrelevant advertising, no longer will companies produce mountains of products to be pushed on to the market often with colossal waste when those products prove to be failure.

Sophisticated customer profiling will democratise capitalism by putting the consumer firmly in control.  Companies will move from slow cumbersome push driven to dynamic rapidly responding pull driven production.  Businesses that fail to embrace the new consumer driven world will ultimately fail as they will be unable to compete with dynamic responsive businesses.  Smaller entrepreneurial companies will be empowered to identify small profitable market niches previously regarded as unprofitable by traditional large push driven businesses.  This will lead to a flourishing of diverse markets and a more colourful society to live in contrast to push driven conformity.

Companies will be forced to bow down and serve the consumer and adapt to their ever changing whims and needs to survive.  Those that do will be amply rewarded.  The consumer will be the winner.

This is a far cry from the bleak dystopian warnings repeated almost daily in the media and films such as Minority Report where the consumer is portrayed in an omniscient automated society intent on entrapping innocent victims in its web of seduction, lies and corruption.  This world is technologically possible, George Orwell warned of this.  Aldus Huxley, inspired by bold 19th century industrial progress, even espoused it before Hitler popularised industrialised eugenics and Aldus Huxley turned away in horror.

Radio National recently ran an excellent podcast analysing both sides of the story, even interviewing some of those involved in the very act of tracking how we feel.

The dystopian vison would only eventuate if we consciously sought this world and allowed it to be created.  I do not believe this is possible.  It is possible that the very act of having this discussion averts this possibility just as the penning of George Orwell’s 1984 in 1948 raised awareness sufficiently to prevent his nightmarish vision.

I am more optimistic and foresee a natural evolution toward a consumer centric demand driven capitalist society where consumers, and even the environment, benefit from a more responsive and resource efficient productive society.

As long as our democratic institutions remain strong, and we remain intolerant of corruption in all collective endeavours, the future will remain bright.

Category:Advertising, marketing, Online, Social Media, Strategy | Comment (0) | Author:

Google Plans Music Service

Thursday, 24. June 2010 8:56

The Wall Street Journal is speculating that Google is planning a music download service.

Google is renowned for shaking up established business models, sending game changing earthquakes through established markets.  It is too early to determine if this will be a good or a bad thing, but it will surely up the ante in Apple’s fight against Google.

Google Plans Music Service Tied to Search Engine – WSJ.com.

Category:Delivery | Comment (0) | Author:

Google increases Australian search lead

Friday, 16. April 2010 9:23

Experian Hitwise highlights the rise of social media and the relative maturity of the search market.  Watch this space and get your marketing strategies ready!

Google increases Australian search lead – Digital Media.

Category:Search, Social Media | Comment (0) | Author:

New model for legal music downloads

Friday, 16. April 2010 8:36

Advertising is the Next Big Thing – in the coming transition from mass media spam based advertising to relationship based advertising, where companies will seek to forge lasting relationships with loyal customers.  This will fragment the market, and some will look back upon the Golden Age of Advertising that united society.  Others will look upon this day as heralding the beginning of consumer and economic liberation.  Every business from the humble corner shop to large multinationals will have access to the most appropriate relationship building tools for their needs, based upon the social media model.

Analysis: Guvera’s new model for legal music downloads – Strategy – Business – News – iTnews.com.au.

Category:Online, Strategy | Comment (0) | Author:

The iPad won’t save newspapers

Monday, 12. April 2010 13:41

This article sees the end of printed journalism and a collapse in paid journalism if the push to online delivery continues – primarily due to the decreased attractiveness to advertisers while other costs remain very similar to the publisher.

What do you think?

Beecher: the iPad won’t save newspapers – Crikey.

Category:Delivery, Publishing | Comment (0) | Author:

Amazon caves on book pricing – Software – Technology – News – iTnews.com.au

Wednesday, 7. April 2010 21:32

Lets hope Amazon are not under-estimating price elasticity (sensitivity)!  I see another business model crushed by the unstoppable might of Apple’s sexiness..

Amazon caves on book pricing – Software – Technology – News – iTnews.com.au.

Category:Pricing | Comment (0) | Author:

iTWire – 10.6 million Australians watched 934 million online videos in January

Monday, 5. April 2010 15:09

iTWire – 10.6 million Australians watched 934 million online videos in January.

Australia is a rapidly growing market for online video distribution.  What will this mean to traditional bricks and mortar distribution models?

Category:Delivery, Distribution, marketing, Online | Comment (0) | Author: