I love the ease with which marketing-guru Seth Godin communicates vital concepts. In a recent blog A Paradox of Expectations he writes: Better than expected might be the level of quality that’s necessary to succeed. Of course, once that becomes the standard, the expectation is reset. The basis of competition has shifted to business models because features and benefits of individual products and services have become so easy to copy. But even business model value promises are subject to the Paradox of Expectations. So how does a leader stay ahead of the commoditization curve? Follow my Ten Commandments for staying out of commodity market quicksand. They form the epilogue of my book about business model innovation, Beyond Price: Differentiate Your Company in Ways that Really Matter. Practice these behaviors in the next year and you’ll better fulfill your unique and highest value role…
AT&T’s business model Achilles Heel
Protected markets are great things, while they last. But when they end, the protected companies pay a huge price. Do you remember when the US car industry lost its near-monopoly position with the entry of Honda and Toyota, who demonstrated that high quality was affordable? When a consumer discovers there is something better after having had no choice, he feels ripped off by the monopoly-like provider. And that ah-ha is disastrous for companies when markets open as customer loyalty is essential to retaining market share. No wonder US consumers waited a decade to recognize that US car quality has improved dramatically. The company that’s going to pay a heavy price for a monopoly-no-longer position is AT&T, the exclusive Apple IPhone network since the to-die-for phone’s introduction. With Apple likely to add other providers in 2011, one would think that AT&T would be working…
Lifestyle company business model strategy
The table lacked butter and olive oil, purposefully. So began my meal Saturday night in Orlando Florida at Seasons 52, a fresh dining concept from Darden Restaurants, parent company to Olive Garden and other restaurant chains. Nothing on the Seasons 52 menu has over 475 calories, a requirement that leads to guiltless mini-desserts. The upscale menu changes every three months (I ate from the Fall menu), and includes weekly specials that capture a food in its best season. Brussels sprouts – a rare restaurant find except in gourmet restaurants – caught my eye. Attractive presentation, brick ovens and a terrific wine list (including wines “soon to be famous”) added to the dining experience. An inviting stone and wood décor complete with a fireplace and a welcoming piano bar will draw repeat visitors for sure. I’m writing about Seasons 52 as it contains the…
Business model strategy strengthened by a unique strategic role
Dane County, Wisconsin likely has more organizations focused on environmental improvement per square foot of geography than any other county in the USA. An early member of the “green community” was Sustain Dane. Like many non-profits, Sustain Dane grew out of the values of founders who shared a drive to make the world a better place. In 1998, attendees from a half-day session on The Natural Step with Torbjorn Lahti, the father of the Swedish eco-municipality movement, began meeting regularly. They established Sustain Dane to move Lahti’s eco-municipality concept forward locally. Like many new non-profits, Sustain Dane’s business model was defined by projects a working board and single staff member wanted to take on. One notable project was development of the rain barrel, RainReserve™, used to divert rainwater from gutters into a water reserve for grass and garden. Over 2000 rain barrels were…
Milwaukee Aerotropolis is a winning business model innovation
Milwaukee Gateway Aerotropolis Corporation demonstrates a great example of inter-governmental and government-business cooperation. It also provides an important example of how government can help to advance job creation. The Airport Gateway Business Association, the City of Milwaukee and seven other municipalities, Milwaukee County, General Mitchell International Airport and The Port of Milwaukee are key stakeholders and founders of Gateway to Milwaukee. Their shared aim is create a vibrant economy centered around the Milwaukee airport and the other transportation modes to which it connects. These include Interstate Highway 94, two Class 1 railroad lines, the airport Amtrack station and the Milwaukee Port. University of North Carolina’s Kenan-Flagler Business School Professor John Kasarda works to advance these “aerotropolis” and there are notable examples around the globe. “Airports are now effectively a part of global production systems,” Kasarda says, “and without that connectivity, you’re out of…