Posts Tagged ‘milkshake’
Low-End Disruption in Consumer Markets | Tech-Thoughts by Sameer Singh
In the 1960s, General Motors held a ~50% share of the US automobile market and 80% of the industry’s profits. General Motors’ integrated value chain allowed it to dominate the industry in an era where products were still not “good enough” (with respect to performance and reliability). But as automobile performance improved, modular, “low-end” disruptors like Toyota attacked it from below and profits evaporated. Toyota did not succeed by immediately attacking the premium segment of the market. It started with the low-end Corona and “then moved up-market by introducing sequentially its Tercel, Corolla, Camry, Avalon and 4-Runner models, and ultimately its Lexus”. Honda and Nissan followed similar approaches to disrupt integrated incumbents like General Motors, Ford and Chrysler. Now, these disruptors are in turn facing low-end disruption from the likes of Kia and Hyundai.
Source: Low-End Disruption in Consumer Markets | Tech-Thoughts by Sameer Singh
Read MoreThe Innovator’s Solution by Clayton Christensen
Utilizing in-depth research of multiple companies and industries, the authors identify what actions and practices are essential for companies to embrace new disruptive innovations and avoid being disrupted themselves.
Source: The Innovator’s Solution by Clayton Christensen
Read MoreEpic Fail: How Blockbuster Could Have Owned Netflix | Variety
Barry McCarthy, Netflix’s former chief financial officer, said in an interview with the Unofficial Stanford blog in 2008, “I remembered getting on a plane, I think sometime in 2000, with Reed [Hastings] and [Netflix co-founder] Marc Randolph and flying down to Dallas, Texas and meeting with John Antioco. Reed had the chutzpah to propose to them that we run their brand online and that they run [our] brand in the stores and they just about laughed us out of their office. At least initially, they thought we were a very small niche business. Gradually over time, as we grew our market, his thinking evolved but initially they ignored us and that was much to our advantage.”
Source: Epic Fail: How Blockbuster Could Have Owned Netflix | Variety
Read MoreThe Innovator’s Dilemma by Clayton Christensen
Clay Christensen shows how most companies miss out on new waves of innovation. His answer is surprising and almost paradoxic: it is actually the same practices that lead the business to be successful in the first place that eventually can also result in their eventual demise.
Source: The Innovator’s Dilemma by Clayton Christensen
Read MoreClay Christensen’s Milkshake Marketing – HBS Working Knowledge – Harvard Business School
About 95 percent of new products fail. The problem: outdated thinking about marketing. Clayton Christensen argues it’s time for companies to look at products like customers do–as a way to get a job done.
Source: Clay Christensen’s Milkshake Marketing – HBS Working Knowledge – Harvard Business School
Read MoreIt’s the Purpose Brand, Stupid
Marriott followed this strategy in leveraging its brand across the jobs for which hotels might be hired. It built its hotel brand around full-service facilities that were good to hire for large meetings. When it extended its brand to other jobs for which hotels were hired, it adopted a two-word brand architecture, appending to the Marriott endorsement a purpose brand for the different jobs its new hotel chains were intended to do. Hence, individual business travelers who need to hire a quiet place to get work done can hire Courtyard by Marriott — the hotel designed by business travelers for business travelers. Longer-term travelers can hire Residence Inn by Marriott, and so on. Even though these disruptive hotels were not constructed and decorated to the same standard as full-service Marriott hotels, the new chains actually reinforce the endorser qualities of the Marriott brand because they do the jobs well that they are hired to do.
— Why has product innovation become a gamble with such low odds? By Clayton M. Christensen, Scott Cook and Taddy Hall
Source: It’s the Purpose Brand, Stupid
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