The blogosphere is aflutter with talk on Apple’s recent customer satisfaction issues linked to the new iPhone 4’s antenna design. A quiet whisper turned into thunderous noise once Consumer Reports decided to not recommend the phone because calls are dropped if the antenna is covered while in use (for example, by the user’s hand holding the phone). Much of the on-line conversation centers on public relations lessons and a debate about the sensitivity issues of the iPhone versus competitive products. (For a good assessment of the PR lessons for Apple, see The Leadership Playlist blog.) There is more to this lesson than public relations. I think in terms of business model and strategic leadership, and I believe Jobs ignored Apple’s business model in resolving an internal debate about the antenna, a product design decision that I’m confident Jobs now regrets. Apple’s value promise…
Reflections from Austria
I am spending two weeks, mostly in Austria, exploring the Eastern Alps and biking along the Donau (Danube) River, before seeing Wein (Vienna) and Prague in The Czech Republic. Austria is exquisite. The majestic views here make Wisconsin’s landscapes look like a table model for the real thing. (And I love Wisconsin’s land.) In Saltzburg, an imposing castle stands atop the city. (The photo is an IPhone shot I took in Salzburg.) Indeed in most significant Austrian cities there are castles or grand churches hundreds of years old, each so stately it defines the character of the community. I can’t help but wonder how the imposing presence of the past impacts those who live in Austria today. Unlike the US which grew steadily, the Austrian-Hungarian empire significantly shrunk following World Wars. How does this affect the cultural norms passed from generation to generation?…
Business Model Innovation Successful for Finfrock Enterprises
I spoke with Robert Finfrock this week. His company, Finfrock Enterprises, is featured in the introduction to my book, Beyond Price, for how it escaped the ruthless construction industry competition. Bob transformed what had become a commoditized business into a one-of-a-kind business selling its services at a premium. The financial and enjoyment returns have been remarkable and enviable. Years after his business model innovation, Bob’s firm finds itself in the toughest macro conditions of its lifetime. (Bob’s firm serves real estate developers and building owners in Orlando, Florida–a market very hard hit by the recent recession). Yet his company is still making money. What about Bob’s industry peers? About 10% of the 275 US plants in his industry have already shut down, unlikely to ever open again. Furthermore, Bob and his team have stayed out of the nasty bid market in which contractors…
Business Model Innovation That’s Good for Kids
The best products and businesses solve problems otherwise left unaddressed. Customers and owners win as a result. Vidalias onions provide this week’s example of a business model innovation with the potential to solve an important problem. Any mother can speak eloquently about the challenges of getting her child to eat healthy foods, with vegetables the most daunting. Yet, sales of Vidalias onions are way ahead of last year’s numbers – because of kids. A savvy campaign involving Shrek, a beloved ogre staring in Dreamworks’ films of the same name, deserves the credit. The onions are displayed with pictures and a giant blow-up of Shrek in the grocery store, complete with recipes like Swampy Joes. Kids, according to the June 28, 2010 Wall Street Journal, are clamoring for Moms to buy Vidalias onions and cook the meals that Shrek and his friends enjoy. What’s…