Tags: business

Can’t Win Them All and That’s Just Fine

Wired.com recently published an article entitled Why the Japanese Hate the iPhone.  The article explores the reasons behind the low adoption rate of iPhones in Japan, whereas the iPhone has found success in many other countries. One primary issue is that  the iPhone simply doesn’t have the feature-set the Japanese market expects:

Besides cultural opposition, Japanese citizens possess high, complex standards when it comes to cellphones. The country is famous for being ahead of its time when it comes to technology, and the iPhone just doesn’t cut it. For example, Japanese handset users are extremely into video and photos — and the iPhone has neither a video camera nor multimedia text messaging. And a highlight feature many in Japan enjoy on their handset is a TV tuner, according to Kuittinen.

The article makes a good case with its 20/20 hindsight analysis for what it’s worth.  What’s more interesting to me is that another way this article could have been written is “How Apple Ignored the Japanese Market and Created a Product Loved by Millions Worldwide.” 

If Apple tried to satisfy the advanced requirements of the Japanese market, the iPhone would not be available today, and when if/when it came out, it’d also likely have a harder time being adopted by most people around the globe.

Similarly, in our world of web application development, we focus on developing for the markets we know.  We don’t spend time worrying that our online time tracking software is not perfect for lawyers, for example.  If we get the experience right for the markets we are in, that’s already a big first step in where we want to be.

Tags: business
Execute the basics, flawlessly.

How McDonald’s (yes, that McDonald’s) has rebounded its business and posted earnings higher than expected.  You might not like their food, but you gotta respect the way they handled their business. The NY Times article on McD is excellent and well worth the time.

The quote above by Bob Goldin, executive vice president at Technomic, a food industry consulting firm.

Tags: business

Rivendell Bicycle Works and their “not a secret business”

Quickly becoming a favorite here at the Watercooler (a few of us have a thing for bicycles if you haven’t noticed), Rivendell Bicycle’s frank and transparent write-up of the company’s history puts a smile on our faces:

I was 40, and started Rivendell with $89,000, a mix of retirement money, savings, loans, and money raised by selling stock to friends.
We’ve been profitable two of the past twelve years, but cash flow is neutral. Sales are about $2.2 million dollars per year. We’re just breaking even, there are no top-heavy salaries, and we fret a lot during slow weeks (and months). I do, at least.
If you’d like to know more, just ask. It’s not a secret business we have here. -Grant

(hat tip to Ken for pointing it out)

Tags: business
Worksman Cycles, founded in 1898, makes heavy duty bikes and trikes.  The family-run business sells its bikes to food vendors, pizzerias in need of delivery bikes, and Fortune 500 companies’ factory floors.  As manufacturing businesses seek to save fuel costs, the industrial bikes provide a perfect solution for moving around heavy tools and parts.  And next time you see a hot dog vendor on the street, don’t be surprised if it’s a Worksman Cycles trike.
Listen to the story: Nation’s Oldest Existing Bike Maker Keeps On Rolling on NPR
(via Matthew)

Worksman Cycles, founded in 1898, makes heavy duty bikes and trikes.  The family-run business sells its bikes to food vendors, pizzerias in need of delivery bikes, and Fortune 500 companies’ factory floors.  As manufacturing businesses seek to save fuel costs, the industrial bikes provide a perfect solution for moving around heavy tools and parts.  And next time you see a hot dog vendor on the street, don’t be surprised if it’s a Worksman Cycles trike.

Listen to the story: Nation’s Oldest Existing Bike Maker Keeps On Rolling on NPR

(via Matthew)

Tags: business

Enough of innovation, how about the basics?

Lately I’ve read, watched and listened to some very smart people talking about innovation.  Innovation is important, and innovation is sexy.  Business people love it, you love it, the media loves it, and I love it.  But why are we talking about innovation when we can’t even get the basics right?

Take the airline industries for example: I don’t need a new word for flying, nor do I need mood lighting.  I need the basics: get me from one place to another safely and try to be on time.  The flight itself should be painless (let’s not even talk about a “good experience”): the seats should be clean and roomy, and the food, if you serve them, should at least not induce vomit.

Look, trying to reach for innovation when your business does not have your basics covered is like trying to dunk like Vince Carter when you can’t even dribble.  And if all your competitors are trying to innovate and they are neglecting their basics, then there is no better time to stick by your guns and work on your fundamentals.

Tags: business

Trying out the Harvard Idea Cast podcast.  Heard a couple of dry ones, and one good episode: #107, Singapore Airlines’ Winning Strategy (they don’t provide a page for the episode, so the best I can do is to link to the MP3 file - about 10 minutes long). Towards the end of the episode, Professor Rohit Deshpande talked about three lessons that we can all learn from Singapore Airlines:

  1. Marketing should be treated as an investment, and not as an expense. This is a particularly important thing to remember as our economy gets worse, as marketing budget is usually the first thing to get cut.  Prof Deshpande thinks that if we can change our point of view and see marketing as an investment, we’d make better decisions during good or bad times.
  2. Focus needs to be on the customer - rather than on the product or the service.  There’s a big difference between serving your customer and having the best product.  And the professor believes that if your business is “customer-centric” and you’re giving what the customer need - you can ride through the tough times because your customers will stay with you.
  3. Getting the customers involved in all aspects of your business - and have them involved in helping you solve problems.  I agree with this to a certain extent…  Customers are obviously important, but I think the opinions of your customers are often formed by the very few vocal ones, and they may not represent the majority.

About the airline industry - it seems that most airlines are providing great service and attention to their business and first class customers.  For us normal folks who cannot afford business class, we are treated like cattle.  I think it’s strange to split up your customers into the very rich and the extreme price-conscious.  What about the folks in the middle, who are willing to pay extra but cannot make the jump to business class?  Maybe there’s something I don’t know about the airline industries, but it seems to make sense to create a middle class, that I can pay extra for a bit extra legroom, humane service and decent food.  Is that too much to ask for?