Category Archives: Business Strategy

Muddy Models

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To dominate or not to dominate. That is the non-rhetorical question. Being a former IT guru, I hang-out virtually with some of my former peers in forums where we argue about everything from driver code to global warming. Many years ago I announced to that cabal that Android would dominate the smart phone market due to its business model. iPhone fanbois who littered this clan insinuated I had lost my mind – that Apple’s elegance, simplicity and market lead would forever overwhelm Android’s then 3% market share. This week Gartner announced Android makes up 75% of all new smart phone sales. My prognostication was based on market mechanics while my techie chums were enamored by Apples early technology differentiation. But like Microsoft before them on the desktop, Google decided to use the ecosystem to spread an operating system, which is a good way to get a lot of companies to … Continue reading →

Lavish Leadership

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“Maybe Microsoft suffers from too much leadership.” That surprising statement came from an industry analyst with one of the major groups. We were recently splitting lunch and enjoying some obscenely great Silicon Valley weather, discussing the tech industry as a whole and wondering if Microsoft might soon be known only as “The Xbox Company.” We mutually marveled at how seemingly inept Microsoft has become, with one market disaster after another. Since we both had experience with start-ups and big vendors alike, the discussion focused keenly on leadership and ossification. You never want to be the leader for the former. Microsoft has two primary problems when it comes to innovation, the first of which is that they remain consumed by former glories and the old ways of thinking. This same analyst told me that – at least until recently – Microsoft sized their markets based on the number of PCs in … Continue reading →

Managing Market Movement

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You have to go through Step-B before reaching Step-C … or Step-Z. Try telling that to a start-up CEO and you’ll earn some nasty looks. One of the greatest errors of leaders, political or business, is to move too fast. Many militarists believe Hitler could have ruled Europe had he taken his time and not rushed to open fronts everywhere at once. Great products have vanished because CEOs aggressively tried to push it into every segment simultaneously. Make too many changes while delivering too little value and you’ll have too few customers. This topic gurgled forth because J.C. Penny, a company born over 100 years ago and thus slightly older than my jokes, ditched their CEO. His overhaul spiraled the once legendary retailer nearly into ruin and its share price was cut in third. Nothing nice has been said about CEO Ron Johnson’s re-rigging, but a common complaint was that … Continue reading →

Invisible Competitors

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Want to see me cringe? Be a start-up founder and tell me you don’t have any competition. Every company and every product has competitors. They may not have offices, there may not be a product, and your prospects may not know they are using your competition. But everyone has competition and it can come from very unexpected sources. Even Google has tangent barriers. Google’s Android mobile operating system is the most popular on the planet, especially in China where they appear on 90% of smartphones. The competition is not the hodge podge of OSs in the other 10%. Nor is it the gaggle of Chinese knock-off companies that wish Google would release the source code to new Android versions more quickly so they could create near-real-time Android clones. The new competitive threat is the Chinese government. Mao’s mavens are not entering the smartphone market. These control freaks simply don’t like … Continue reading →

Not Satisfied?

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Not knowing if your customers are satisfied should make you unsatisfied. One of the oldest and yet more ignored market research activities is customer satisfaction surveying. Since customers are the source of buzz – both positive and negative – knowing what your paying customers think and feel is critical to seeing potentially fatal problems and capitalizing on stunning capabilities. It also can uncover where you think what you offer is important but actually disinterests the market. It’s almost as good as surveying lost sales an activity which is very valuable and equally rare. The key objectives of every customer satisfaction survey are to know where a company excels (for promotional purposes), where it lags (for improvement) and where there are opportunities for profitable change. I once ran a customer satisfaction survey that included a pricing sensitivity measure and discovered that my client was undercharging for their product. They received a … Continue reading →

Outsourcing Savvy

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Happily, outsourcing marketing strategy works for everyone. Last year I got a call from a global conglomerate that rakes in over $20 billion each year. They were launching a new product from within one of their divisions. Savvy as they were, they needed help in new product go-to-market messaging.  In the division of that giant corporation, the native knowledge was unavailable. Sadly, this doesn’t happen all the time. Nobody is universally competent. In large companies, even specialists with necessary knowledge are not portable between organization boundaries. Smart marketing executives inventory their talent and outsource as needed to assure everything that needs to be done is done, and is done well. Companies that don’t fail. Early in my consulting career I was hired to help with the pivot of all pivots, changing an entire post-IPO enterprise from a hardware company into a software vendor. The company was successful at what they … Continue reading →

Don’t Survey

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I have talked clients out of broad market research studies. Doing so doesn’t help my bottom line. We at Silicon Strategies Marketing do quite a bit of market research work, both qualitative and quantitative. Surveys have become one of my favorite projects because divining numerical answers from complex situations engages my inner geek. Our clients have a tendency to want to know everything today. They envision surveying their broad markets with dense surveys that measure everything, right down to if respondents were or were not bottle babies. I talk nearly every one of them out of this. Your market is divided into segments, for which there are a small handful of magical requirements. Yet all segments are not created equal – some are more interesting and profitable than others. After developing your segmentation model, your next step is to scorecard potential segments and quickly decide which are most viable– for … Continue reading →