Archive for April 2013
Top 6 – April 2013
“Selling a product at a loss for market share is not a good business decision.” Jeff Fettig, Chief Executive, Whirlpool Costs and market share are easily measured. What about value? Creative Destruction Continues to Avoid Itself Businesses fail, businesses succeed. Should you flippantly accept this reality or actively participate in creating the future in which…
Read MoreProcter & Gamble Trumps Church & Dwight: An Example of the Customer Orientation Overtaking a Medieval Business Strategy
CEOs Robert McDonald of P&G and James Craigie of Church & Dwight are facing off in the laundry soap business, and one of them is slinging mud. Recent executive comments and division performance reports highlight that the battle in the soap aisle isn’t just about soap, it’s about the fundamental purpose of businesses in competitive markets.
Read MoreJ.C. Penney’s Demise Recalls Other Major Modern Retail Failures
Ron Johnson’s flawed strategy and his subsequent ouster as CEO of J.C. Penney recalls other major retail failures due to fatal marketing, strategy, and operational mistakes. Consider E.J. Korvette, F.W. Woolworth, or W.T. Grant.
Read MoreIs Amazon No Longer a Low-Price Ecommerce Leader?
Economic Price Optimization through A/B Tests: Limited Applicability, Part 4 in our Series
Which is a better price: $15.99 or $16.49? To answer this question, we have A/B testing and price optimization, but this approach doesn’t work all the time.
Read MoreWhy J.C. Penney’s New Strategy Won’t Work
A few months ago I reported on a visit to J.C. Penney and commented on my disappointment with the look and feel of the store. What I saw was CEO Ron Johnson’s new strategy. The basis of this strategy is a return to the roots of the company through its “Fair and Square Every Day” philosophy. The problem with this strategy is that it is, in the words of Wharton Professor George S. Day, an “inside-out” strategy instead of an “outside-in” approach.
Read MoreJ.C. Penney – Love the Vision But You Chose the Rocky Path
JC Penney’s CEO Ron Johnson has had a tough go at it. Stock valuation is down roughly 40% since the time Johnson took over. Customer sales are down 20% from last year. Some are calling for his resignation. But before we chant “off with his head” with the Twitterati, let’s see if we can’t help him find a way out of his quandary.
Read MoreRealizing Dramatic ROI Using Greenfield Analysis
To achieve results in business transformation, it is imperative to bring together subject-matter experts (SMEs) from different parts of your company who become your change leaders. Challenge them to use a clean-sheet-of-paper approach, or a so-called ‘green field’ approach, to develop a ‘genius’ solution. Read case studies of how.
Read MoreEconomic Price Optimization Part 3 – Mental Models Matter
In Freshman Land, economic price optimization can be done with simple models and equations. But Freshman Land doesn’t reflect reality, and hence we have to move to the next level. We have to have the right mental model of demand.
Read MoreTop 6 – March 2013
“If there is a Volkswagen Way, it is to be determined, diligent and attentive to detail, with a glint of ruthlessness.” VW conquers the world, The Economist (July 7, 2012). Every firm has different goals and needs. Don’t try to emulate Google’s strategy; create a better one. There is no one silver-bullet fix for every…
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