Article – Who is your tomorrow’s competitor

Thanks to my friend Ashish Srivastava who forwarded email with the following article to me. Totally worth spending 5 minutes reading it.


Who is your tomorrow's competitor?? – article by IIMB Professor Y. L. R Moorthi

Who sells the largest number of cameras in India?

Your guess is likely to be Sony, Canon or Nikon. Answer is none of the above. The winner is Nokia whose main line of business in India is not cameras but cell phones.

Reason being cameras bundled with cellphones are outselling stand alone cameras. Now, what prevents the cellphone from replacing the camera outright? Nothing at all. One can only hope the Sonys and Canons are taking note.

Try this. Who is the biggest in music business in India? You think it is HMV Sa-Re-Ga-Ma? Sorry. The answer is Airtel. By selling caller tunes (that play for 30 seconds) Airtel makes more than what music companies make by selling music albums (that run for hours).

Incidentally Airtel is not in music business. It is the mobile service provider with the largest subscriber base in India. That sort of competitor is difficult to detect, even more difficult to beat (by the time you have identified him he has already gone past you). But if you imagine that Nokia and Bharti (Airtel's parent) are breathing easy you can't be farther from truth.

Nokia confessed that they all but missed the smartphone bus. They admit that Apple's Iphone and Google's Android can make life difficult in future. But you never thought Google was a mobile company, did you? If these illustrations mean anything, there is a bigger game unfolding. It is not so much about mobile or music or camera or emails?

The "Mahabharat" (the great Indian epic battle) is about "what is tomorrow's personal digital device"? Will it be a souped up mobile or a palmtop with a telephone? All these are little wars that add up to that big battle. Hiding behind all these wars is a gem of a question – "who is my competitor?"

Once in a while, to intrigue my students I toss a question at them. It says "What Apple did to Sony, Sony did to Kodak, explain?" The smart ones get the answer almost immediately. Sony defined its market as audio (music from the walkman). They never expected an IT company like Apple to encroach into their audio domain. Come to think of it, is it really surprising? Apple as a computer maker has both audio and video capabilities. So what made Sony think he won't compete on pure audio? "Elementary Watson". So also Kodak defined its business as film cameras, Sony defines its businesses as "digital."

In digital camera the two markets perfectly meshed. Kodak was torn between going digital and sacrificing money on camera film or staying with films and getting left behind in digital technology. Left undecided it lost in both.

It had to. It did not ask the question "who is my competitor for tomorrow?"

The same was true for IBM whose mainframe revenue prevented it from seeing the PC. The same was true of Bill Gates who declared "internet is a fad!"

and then turned around to bundle the browser with windows to bury Netscape.

The point is not who is today's competitor. Today's competitor is obvious.

Tomorrow's is not.

In 2008, who was the toughest competitor to British Airways in India?

Singapore airlines? Better still, Indian airlines? Maybe, but there are better answers. There are competitors that can hurt all these airlines and others not mentioned. The answer is videoconferencing and telepresence services of HP and Cisco. Travel dropped due to recession. Senior IT executives in India and abroad were compelled by their head quarters to use videoconferencing to shrink travel budget. So much so, that the mad scramble for American visas from Indian techies was nowhere in sight in 2008. (India has a quota of something like 65,000 visas to the U.S. They were going a-begging. Blame it on recession!). So far so good. But to think that the airlines will be back in business post recession is something I would not bet on. In short term yes. In long term a resounding no. Remember, if there is one place where Newton's law of gravity is applicable besides physics it is in electronic hardware. Between 1977 and 1991 the prices of the now dead VCR (parent of Blue-Ray disc player) crashed to one-third of its original level in India. PC's price dropped from hundreds of thousands of rupees to tens of thousands. If this trend repeats then telepresence prices will also crash. Imagine the fate of airlines then. As it is not many are making money. Then it will surely be RIP!

India has two passions. Films and cricket. The two markets were distinctly different. So were the icons. The cricket gods were Sachin and Sehwag. The filmi gods were the Khans (Aamir Khan, Shah Rukh Khan and the other Khans who followed suit). That was, when cricket was fundamentally test cricket or at best 50 over cricket. Then came IPL and the two markets collapsed into one. IPL brought cricket down to 20 overs. Suddenly an IPL match was reduced to the length of a 3 hour movie. Cricket became film's competitor. On the eve of IPL matches movie halls ran empty. Desperate multiplex owners requisitioned the rights for screening IPL matches at movie halls to hang on to the audience. If IPL were to become the mainstay of cricket, as it is likely to be, films have to sequence their releases so as not clash with IPL matches. As far as the audience is concerned both are what in India are called 3 hour "tamasha" (entertainment). Cricket season might push films out of the market.

Look at the products that vanished from India in the last 20 years. When did you last see a black and white movie? When did you last use a fountain pen?

When did you last type on a typewriter? The answer for all the above is "I don't remember!" For some time there was a mild substitute for the typewriter called electronic typewriter that had limited memory. Then came the computer and mowed them all. Today most technologically challenged guys like me use the computer as an upgraded typewriter. Typewriters per se are nowhere to be seen.

One last illustration. 20 years back what were Indians using to wake them up in the morning? The answer is "alarm clock." The alarm clock was a monster made of mechanical springs. It had to be physically keyed every day to keep it running. It made so much noise by way of alarm, that it woke you up and the rest of the colony. Then came quartz clocks which were sleeker. They were much more gentle though still quaintly called "alarms." What do we use today for waking up in the morning? Cellphone! An entire industry of clocks disappeared without warning thanks to cell phones. Big watch companies like Titan were the losers. You never know in which bush your competitor is hiding!

On a lighter vein, who are the competitors for authors? Joke spewing machines? (Steve Wozniak, the co-founder of Apple, himself a Pole, tagged a Polish joke telling machine to a telephone much to the mirth of Silicon Valley). Or will the competition be story telling robots? Future is scary!

The boss of an IT company once said something interesting about the animal called competition. He said "Have breakfast …or…. be breakfast"! That sums it up rather neatly.

—Dr. Y. L. R. Moorthi is a professor at the Indian Institute of Management Bangalore. He is an M.Tech from Indian Institute of Technology, Madras and a post graduate in management from IIM, Bangalore.

 

Hard Sell Vs. Selling a solution

Here's the thing about selling. Nobody wants to be sold to. What people do want are solutions.

Do you take the time to show customers to show a solution to their problem or even a fact that your product is successfully solving problems for a particular problems other customers are having? Selling a product is lot easy when a solution is attached to it. Hard selling is lot harder and you are depending on your sales skills more than the strength of your product or understanding of customer needs. People like to feel that they are in control when dealing with sales consultant and not the other way, so are you doing all it takes to understand your customer's need and selling them a solution?

Deals are On at SoftwareAndTools.com

 

We have launched SoftwareAndTools.com on 1 September, 2010. This post is to summarize what SoftwareAndTools.com is and to highlight the recent deals and the value it brings to various people.

 

What is SoftwareAndTools.com?

 

SoftwareAndTools.com is a site providing value added software and web product deals at exceptional prices while bringing more market exposure and sales to the product vendors. The deals will be for a set time and can either be individual products or bundle of few products together.

 

Using campaign-oriented marketing, we will take the deals to the right customers thus bringing value to both Customers and Vendors. 

 

Recent Deals

 

We launched the site with 4 products. Two of the products are Aimersoft’s Video Converter and the rest are logo and stationery design deals.

 

Aimersoft Video Converter

We capture videos on various recording devices these days. From our fancy smart phones or HD recorders. We buy audio and video in various formats or we have a DRM protected DVD which we want to be convert in a different format. Some of us want the capability to play our captured videos in multiple formats so that we can watch them from a place and device of our choice. Some of us might want to remove DRM on those Audible audio formats or from DVD’s which we want to watch on our latest iPhone4. No problems, Aimersoft’s powerful and fast Video Converter are at the rescue. 

 

Aimersoft’s Video converter software are available for Mac & Windows version. With nearly 100 predefined settings for various formats and devices, the software is easy to use and can create user-defined video conversion profiles. While both software provides the functionality to rip DVD’s, Windows version of the software offers the functionality to remove DRM protection from audio and video. Both software provide the functionality to edit, trim, watermark videos. Use this tool to convert videos for your mobile player or make them web ready.

 

This software is idle for anybody wanting to convert audio and videos into various formats. Bloggers and professional writers can take their existing recorded videos, edit them, add watermark and upload them on their own website or sites such as Youtube. There is 41% off on this software and available for only $29.

 

Logo & Stationery Design Deals

Logos becomes part of our identity. They become part of our branding strategy. To have a logo that conveys your brand message is very important.

 

When a business, blog, startup, website is just starting out, budgets are tight and we want to see how we spent our money. Before we start designing the website or a business card, first thing we have to design is a branded logo. Not everyone is creative nor a designer and hence we have to outsource the designing to someone else. If you are web savvy, you can go to 99 Designs or similar websites to get your logos designed or ask a designer friend to do it for you. 

 

Doing market research and from our own experiences we found that getting a logo designed was an expensive affair. So, what did we do? We got you deals for logo design deals. Get professional logo designed for as less as $60 to getting a logo designed with unlimited revision and customized stationery for $150. It can’t get better than this! [of course if it’s free – it can]

 

 

These deals are not for me!

No problems. Not everything is meant to be for everyone. You can always forward these deals on to someone else who can possibly benefit from it.

 

We are working with vendors to bring you Windows, Mac, Web based services and products in the future. You can follow us by subscribing to our newsletter, Twitter, subscribe to our blog or Facebook. Alternatively you can contact us at info @ softwareandtools.com or vendors @ softwareandtools.com.

 

This weekend belongs to Dyson

I come to my knees when it comes to Customer Service and Customer Experience and I experienced both when dealing with Dyson this weekend.

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image credit : – srboisvert

In Australia, I haven't come across many service providers and manufacturers which are as good as Apple in terms of their Customer Service. Now I have to add Dyson next to them. I have a three year old vacuum and the bearing in the turbine head has gone bad. I called up Dyson to get a new replacement and happily pay them ~$130 for it. Guess what, not only I got hints and tips to improve the performance of my vacuum cleaner by a pleasant customer service rep, but before I knew it she had organised a replacement turbine to be sent to me for free!

What got me to love Dyson? It was not the free stuff, it was the customer reps politeness and willingness to listen to me and help me out and provide me more than I asked me. She even wanted me to call them again if I had other problems. This is something that not many companies are doing this days. She surprised me!

The result, made my day,  * * * * * stars for Dyson, I knew they had a great product, now I know they have a great team as well. Now the little salesman in me is going to tell this story to ~100 people and even if 1 person buys a Dyson product because of my story, it will all be worth my time.