strategy Archives - Page 13 of 28

Access vs ownership

Posted on February 2, 2008 by Steve Sammartino

We often have a default thinking that we must ‘own’ something to benefit from it. Particularly when it comes to assets. The truth is more like this…

we only need access, not ownership.

We don’t need to own a Boeing 747 to fly to Sydney, New York or London. We just need a seat on it – access to it. A lot of the time it doesn’t make any sense at all to own something.

It’s just as silly to think we need to have (own) all the technical skills our startup or business requires. And here’s an example which will makes us all very excited.

Yes Skype. The founders of Skype, Zennstrom and Friis, are not programmers. They outsourced all their technical requirements to a team of coders in Estonia. They wanted fresh eyes on the project. None of the coders had telecommunications experience either. They just told them what they wanted and made it happen.

No need to discuss what happened next.

Over reactions

Posted on January 31, 2008 by Steve Sammartino

Over reactions are omnipresent in humans. The best example is the sharemarket. It is rarely priced at ‘fair value’. The sharemarket sentiment is either overly optimistic or overly pessimistic.

it seems that managers tend to over react

it seems that employees tend to over react

it seems that VC’s tend to over react

it seems that suppliers tend to over react

it seems that customers tend to over react

The funny things is that over reactions never solve the problem, and often compound them.

Isn’t it refreshing when one of the above has a balanced and considered response to the inevitable issues which pop up in any start up business.

Be refreshing.

10 years from now

Posted on January 28, 2008 by Steve Sammartino

You’ll look back in way in which you can’t grasp how much opportunity lay before you.

You’ll consider the freedom of choice you really had which made anything possible.

You’ll see your business ideas, predictions and philosophies transformed into an abundant economic reality.

10 years from now you’ll be able to look back on your choices today.

In 10 years….

…don’t be the shoulda, coulda, woulda guy*.

*guy means person at startupblog in a 2008 kind of way!

Latest article

Posted on January 28, 2008 by Steve Sammartino

Here’s a link to my most recent ‘start ups’ article in Anthill Magazine – The Australian magazine for fast growth companies.

Click here.

It’s an extention of a recent blog entry. In future I’ll link all my magazine articles to start up blog, which tend to build on ideas in much greater depth. (I’ve been a bit lax)

I reckon you’ll digg it (as always, pun intended).

Maxjet bites the dust

Posted on January 25, 2008 by Steve Sammartino

Another business class only airline has bit the dust – Maxjet. You may remember our view on why Ozjet failed.

And on this occasion we have a similar theme, but not quite as extreme. Maxjet had some of their act together and survied 4 years. Like the right routes, nice inflight service and an airline lounge. But it still had a few key flaws which still leaves the question unanswered:

Is a business class only airline a viable business model?

Start up blog says: We won’t know until someone ticks all the following boxes:

A new and modern fleet (18 year old 767’s don’t cut it Maxjet)
A cabin which is world best practice business class (Flatbeds are now the benchmark Maxjet)
Linked to premier frequent flyer program which links to other airlines and allows code sharing (One World / Star alliance)
It has international & domestic coverage in it’s home market
Flights every hour / a large fleet
It has the right level of ground service (Airport lounges / chauffer service)
Credit Card linkages

Maybe the business class only model could only work as a sub brand of a larger network (which Lufthansa is doing). It will be interesting to see how the remaining players net out (Silver jet & Eos)

Insight?: Maybe people who regularly fly business class enjoy looking down on those in coach too much to leave their multi class carrier!

I’d strongly advice against starting an airline. But if you must, show your VC’s this blog entry first.

The experiment – Joseph Jaffe

Posted on January 23, 2008 by Steve Sammartino

JJ of Jaffe Juice is running an experiment to test the theory of his new book – Join the conversation. And it’s this:

Use new marketing to prove new marketing (or UNM2PNM for short)

The underlying thinking is that he use the approaches discussed in the book to promote it – hence providing a proof of concept.

So he’s given 150 books to bloggers and the like (me included) who’ll review it and ‘start the conversation’ – good bad or ugly. So when I get it, I’ll review it right here on start up blog.

It’ll be an interesting experiment to see how the book does in market.

‘Game changing’ – Nintendo Wii

Posted on January 22, 2008 by Steve Sammartino

If anyone ever needs proof that the market leader can be given lesson, Nintendo provides this.

From a brand which dominated the 1980’s with handheld games and fell into relative console obscurity during the 1990’s it’s comeback has been astounding as has the performance of the Wii.

And it’s all based on simple consumer insight:

“Games everyone can play”

A direct quote from their current advertising. Enough said.

They are clear console market leader now in Australia. Overtaking the previously thought ‘unbeatable’ Sony Playstation franchise. No incumbent is ever safe. This maxim will only increase in relevance over time.

Often we build complexity into things because the technology allows it. We are better off focusing on what makes sense for the end user, not what’s possible.

Chris Anderson of Long Tail fame has been espousing for a long time that the future of gaming is not in the console, but the controls. He’s obviously ahead of his time.

Start up lesson: The offer with the best user experience, always beats the offer with the best technology.