A broader investigation into how business can exploit online community underlines the importance of online information in driving purchase decisions, but the most influential information is beyond the direct control of companies selling products and services. Courting the small fraction of Internet users who write online reviews and comments is a very important task for many companies, but one they often neglect.
Many companies downplay the importance of online communities because only a few percent of all Internet users contribute to them heavily. What they don’t understand is that most other Internet users read those reviews and rely on them heavily when making purchase decisions. Taking good care of online communities can be a huge money-saver for companies trying to get more marketing impact from limited budgets.
Know Yourself
What is the essence of your character? Said differently, what matters to you? This isn’t just a touchy-feely question, it’s the bedrock that describes who you are. What is deeply …
Customers Love Beats Technology Innovation
Public statements notwithstanding, more business plans in Silicon Valley are built around technology than around customer relationships. It’s just the way it is; we’re talking about technology companies, right? The problem is that, given time, all technology either becomes obsolete or a commodity. With the increasing pace of technological change, this is happening sooner rather than later. The risk in building on technology rather than customer relationships is that you are never more than a wrong turn or two away from putting your business survival at risk. Customer relationships provide your business with more options, and strong relationships can be very forgiving of the occasional misstep, meaning your business is more resilient and your plans can be bolder. Further–and perhaps even more important–technology-centric business models limit your offerings and growth potential, so they are associated with lower valuations over the long term.
Lessons Learned
I constantly remind myself to learn. No matter what the experience, how tough or how painful, if I’ve learned something from it, I can live with it. If I pay …
When the Best Defense is Growth
If your business is targeted by a larger competitor, the natural response is to want to play defense — to squeeze pricing, take special care of the channel, maybe do some promotions and guerrilla marketing. We’d never advise you to take your eye off a competitor, but the defensive reaction isn’t always the best way to fight. A larger competitor will expect you to do these things, and will usually be well prepared for siege warfare. They’ll be ready to match your pricing and outspend you in the channel in order to drive you out of the market.
Hope is Not A Strategy
Executives at the helm of companies from small firms to large enterprises spend much of their time thinking about how to drive growth. But putting those thoughts into action can challenge even the most seasoned leader. Often executives focus on the “what” of strategy at the expense of the “how” — neglecting the “how” makes success a long shot.
Beyond Web 2.0
A popular sport in Silicon Valley is arguing about what exactly Web 2.0 is or is not. Is it about collaboration? Social networking? Custom services?
We think the argument misses the point. Web 2.0 is just an effect of a broader trend: the fundamental remaking of the software industry as a result of the Internet.
Difficulty is a Great Teacher
What I thought was torture when I worked at Apple – working with 23 different managers in seven years – I now see as an experience that refined by ability …
Avoiding Strategic Failure
I’ve watched strategy being developed within companies like Adobe, Apple, Autodesk, and Nokia. I’ve seen strategy created by individuals. I’ve seen the big suits of Bain and McKinsey at work. I’ve seen it done well, and occasionally I’ve seen it done poorly. Having read more than 100 books that define the best thinking on strategy, I’ve noticed that following the existing methods often doesn’t yield success.
It’s not just the methodology. Here are five reasons strategy fails in businesses:
- Culture & Leadership (146)
- Entrepreneurship (160)
- Featured (8)
- Market Power (216)
- onlyness (124)
- Social (80)
- Talks (29)
- Technology & Trends (78)
- The Personal Story (81)
- Uncategorized (195)
