Growing Up

As many Americans prove daily, it is easier to grow wider than it is taller. Silicon Strategies Marketing is currently consulting with a company that has a fairly wide reach in their market, which is the foundational side of their industry. They serve companies at the middleman and retail level, and on a regional basis are fairly dominant, though they have both room for improvement and the option of growing geographically. Their other option is to go vertical, to begin competing with their existing customers and earn money they otherwise help their customers earn. The trade-off for companies in such positions is complex. To grow, a company needs to provide new value and by doing so attract new customers. Or they need to gather more customers of the type they currently serve, which typically involves taking them from competitors. The last option is to find ways of making money by … Continue reading

HP Handsets

Just keep reminding yourself that Compaq was an odd deal too. Today Hewlett Packard palmed Palm for whopping $1.2B, or about 1/10th of HP’s petty cash.  This was newsworthy for many reasons including the fact that Palm’s struggling handset line will now join HP’s struggling handset line (bet you forgot that HP makes cell phones — so did the rest of the market).  In a world where RIM owns the corporate market, Apple owns the consumer market, Microsoft hasn’t helped HP’s market, and Google/Android are changing the rules of the market, this marriage seems slightly more absurd than half of Hollywood hook-ups. The deal is not without upside.  First, the market for mobile is not yet saturated.  Especially on the low end, there is plenty of green field. As unlocked handsets become more prevalent and popular, HP can use its retail savvy to shove cell phones into public ears.  I … Continue reading