Winning the Profit/Market Share race

I love this graph and the effective way it communicates its message. Thought you may find it interesting too.

Market Share Growth Vs Profit Share Growth. (Source: Gizmodo.com)

The way I read it:

Apple has stolen the baton from Nokia. Nokia is discounting to survive

Second tier players – Samsung, Motorola have held their prices, but lost valuable influence they may never regain

Motorola’s board will be patting themselves on the back for not getting into a price war – but are knocking on the back door of the market (they’re dead)

Sony is the worst performing – losing market share and profit in perfect symmetry

It also shows features and add-ons to tired products are no substitute for fresh thinking and geniune new ideas!

 

 

I can touch you from anywhere

Image by the justified sinner via Flickr

The Boxer that can reach the furthest wins.
Technology wins wars.
Technology that extends your reach gives instant business advantage.

Using available technology in a new way wins battles.
Using technology in production to out produce the competition wins a war of attrition.
Americas capacity to make stuff won the second world war. They could make submarines and tanks faster than anyone else.
Surprisingly many people do not realise that the objective of most wars is to destroy enemies industrial base not just shoot at their foot soldiers.

So who’s winning in the new media world – you or your competition? Who’s using tech most effectively? Who’s planning your industries equivalent of a trojan horse, a Waterloo, a Pearl Harbor?

Are you launching – or waiting for a surprise attack where you expect it the least?

And it’s probably from someone on the other side of the world. I can touch you from anywhere.

How (NOT) To Stand Out From The Crowd

The Australian elections this weekend gave a sobering lesson in how (NOT) to stand out from the crowd.

Both major parties appeared to pedal similar policies and want the same things, (at least from an NZ perspective)

Result: A hung parliament – too close to call, and all power now vests with the tiny solo ‘independents’ and the one seat of the Greens. Its happening all over the western world as political parties bend over backwards so as not to offend anyone – and end up not standing for anything and annoying everyone.

The lesson applies to large business – if you are perceived to be similar to your major competition – then you will loose market share to some little startup sooner or later.

It could be argued Apple did just that when the phone market was full of me-too items

The lesson applies equally to small business – stand for something different – stand out – and you wont be trampled by the big guys – but you might just grab more market share than you expected – in a hurry – from people bored with the same old same old.

So – In what way is your business the same as your competition?

And how can you change that – and strengthen your customers perception of a business that is strong, vibrant, a leader – someone they want to do business with!

Prove it works is dead. Long live prove it pays

In the 80’s proving you could move data across town would have cinched the deal. If you tried to prove that now – your customer would be calling the guys with the little white jackets

Nobody doubts you can coobble together existing technology in some unique way that suits a very specific and useful business need.

Everyone is skeptical about translating that usefulness into value – and into money.

I have seen many people learn this the hard way – including me. Spend time and money getting something working, only to find that wasn’t the roadblock to success.

Imagine how dumb I felt standing there with a technical marvel, focussing for months to get it right and not once thinking about how I was going to get to that first paycheck. Like many others I felt the world would beat a path to my door. The money would happen like ‘magic’.

So next time you have a brainwave, and are about to hock the family car to build a proof of concept / prototype/ demo unit. STOP. Figure out how to sell the concept as-is to someone.

Even a “If I demonstrate my design will do xxxxxxx then you promise to pay $$$$$” is a big way forward.

And if you can’t – you saved time and money that would otherwise be wasted.

And if you are worried that if you tell someone they will take the idea and copy it – then your idea needs more work. Because that is exactly what WILL happen sooner or later

And if you find the idea is not quite what people want – relax – you are doing market research for the real world-changing idea!

So follow the money honey – how do you get from right here right now to that first sale?

Seth Godin on Choosing Customers

Seth has a way of succinctly saying things. And his post <here> on choosing customers ties in with my recent target market focusing.

In the age of hyper-niche marketing this is more important than it ever has been.

Could YOU charge $11,000 for a car wash?

Think your industry is price driven – think again. This enterprising chap charges up to $11,000 for a car wash and has no fancy premises – he works in his parents garage!

How can you apply this lesson to YOUR business?

If you went for nothing but the best in every tiny detail – what would someone pay – and if you are thinking “That doesn’t apply to me”, then you are not thinking hard enough, have already given up – or are in need of a creative session surrounded by can-do people.

For an Honest Opinion – ask your teenager

Want to know if an idea passes the cool test – or sucks? Ask your teenagers. Chances are – if you can explain it before you loose their attention span – AND get a reply – its a good-un. If they switch the iPod back on – well – you already knew the answer.

Not got a teenager – borrow one. Most parents will gladly lend you one of theirs if you’ll just feed them for an hour – or better yet – play taxi driver and take them wherever they want to get.