…."IPhone is the number one smartphone in the world and continues to be number one in customer satisfaction," an Apple spokeswoman said in response to questions about the competition. As for the Kindle Fire, she noted others have introduced tablets with seven-inch screens and a limited number of apps, and "none of them have gained significant traction against iPad's incredible momentum."....
...Amazon and Google pose particular problems for Apple because of their sharply different (Value Capture) strategies. Apple makes most of its money from hardware. Google gives away its software in hopes of reaping profits from search advertising. Amazon expects to benefit from sales of digital content; its chief, Jeff Bezos, even characterized the Kindle Fire as more of a service than a device….
Monday, October 31, 2011
Apple Fights On Without Its Muse
In our work with MDG, we define the Business Design as:
Most companies tend to spend most of their time on deciding who the target customers are and what Value Propositions they want to create for these customers to establish competitive separation. Companies tend to spend less time on defining how they capture value as a competitive tool.
The essence of this article is understanding the potential power of clearly defining how you capture value on the impact on establishing competitive separation.
Monday, October 24, 2011
This is a must watch video on innovation. Steve Jobs and his work at Apple are synonymous with innovation. Here is an example of innovation at the other extreme of the technology spectrum.
It would be great to share with us your learning’s from this video on what innovation means.
Tuesday, October 11, 2011
This is a great summary of the banking industry consolidation over the past 20 years. It is a classic example of inorganic growth for the banks that were the consolidators. Four key questions:
1. Was the overall size of the market/pie increased by this activity?
2. Was the competitive separation of the consolidating banks increased by their actions?
3. If the answer to 2 was no, how can the short term growth in earnings from the consolidation be sustained?
4. Is this overall strategy sustainable?
Monday, October 03, 2011
Old Ketchup Packet Heads for Trash
Heinz 'Dip and Squeeze' Container Aims to Conquer a Major Frustration of Chowing Down in Transi
This is a simple but a potentially powerful outcome from gaining a deep customer insight from observing the user which we believe is the essential starting point in offering development
Some people rip off the corner of the packet with their teeth. Others, while driving, squirt the ketchup directly into their mouth, then add fries. Some forgo fries at the drive-through all together to keep from creating a mess in the car.After observing these and other "compensating behaviors," H. J. Heinz Co. says it spent three years developing a better ketchup packet....
...As the name promises, "Dip and Squeeze" ketchup can be squeezed out through one end or the lid can be peeled back for dipping. The red, bottle-shaped packets hold three times the ketchup as traditional packets. The new containers are more expensive than the old sleeves, but Heinz hopes customers learn not to grab more than one or two.......Heinz believes traditional ketchup packets are so annoying that they stop people from ordering fries at drive-thrus. "Fry inclusion orders" at drive-thrus "have been going down for years," says John Bennett, vice president of food-service ketchup, condiments and sauces for Heinz.