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Archive for April 6th, 2010

When to Quit and When to Stick

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Complements of the mind of Seth Godin…

“If you are not going to put in the effort to be the best possible choice, why bother?  Is, “Well, no one better showed up” a valid strategy for success?  Are you hoping to become a success because you’re the only one being considered?

The reason big companies almost always fail when they try to enter new markets is their willingness to compromise.  The figure that because they are big and powerful, they can settle, do less, stop improving something before it is truly remarkable.

They compromise to avoid offending other divisions or to minimize their exposure.  So, they fail.  They fail because they don’t know when to quit and when to refuse to settle.

What Jack Knew

When Jack Welch remade GE,  the most fabled decision he made was this: If we can’t be #1 or #2 in an industry, we must get out.

Why sell a billion dollar division that’s making a profit quite happily while ranking #4 in market share?  Easy.  Because it distracts management attention.  It sucks resources and capital and focus and energy.  And most of all, it teaches people in the organization that it’s Okay not to be the best in the world.”

Written by frrl

April 6, 2010 at 4:55 pm

Technology Adoption Curve

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Speaking of the Apple iPad – here is a typical technology adoption Life cycle

Here are the six stages to consider:

Early Market. When a disruptive innovation is first introduced, it initially attracts the attention of technology enthusiasts (who see it as cool) and visionaries (who see it as potentially disruptive). The category is given a name, but it is not yet clear if it will be just a flash in the pan.

The Chasm. Having now been in the marketplace for some time, the offer has lost its novelty; visionaries no longer see it as a source of dramatic competitive advantage and pursue disruptive opportunities elsewhere. As a result, the market stalls.

Crossing the Chasm. The only reliable way to exit the chasm is to target on the other side a niche market made up of pragmatists united by a common problem for which there is no known solution. These pragmatists are motivated to help the new technology cross the chasm if it is packaged as a complete solution to their problem.

Bowling Alley. In this phase, the technology has gained acceptance among pragmatists in multiple-niche markets where it enables genuine solutions to uncommon problems. Within adopting niches, the new paradigm builds a loyal following among those who see a market in the making. Outside the niches, it is becoming more widely accepted by the general public.

Tornado. The technology has proved its usefulness in niche markets and, in the process, a killer app has emerged — something that makes it both broadly applicable and highly attractive to a mass audience. Overnight it becomes perceived as necessary and standard.

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Written by frrl

April 6, 2010 at 4:53 pm

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