Tag: strategy

The original pivot – Oakley

Posted on by Steve Sammartino

There’s a lot of talk in startup circles about finding business models and the idea of making a ‘pivot’ to an alternative idea, model or technology. The pivot being taking part of what’s working and moving more pointedly in that direction. In the old school pre-tech startup days we used to call it a related diversification or a simple direction change. In many ways it’s far easier to do when we are in the information sector as we are only moving ones and zeros as opposed to factories, retail outlets and customer segments.

Recently I’ve embarked on a new project (a passion play with no intended financial outcome). The project is to build the BMX bike I wished I had when I was a kid. I did have one, but not the mac daddy version… So now that I can afford it, I’m going to find all the parts I need and build it piece by piece. My research on the topic currently lives here.

One of the parts I need want is a pair of Oakley 3 handle bar grips (seen below) Which as far as I can tell have been out of production for 20+ years.

It sent me on a bit of a search around the web, which gave me some nice insights into Oakley Inc – the company. They are a classic example of how to pivot. They seamlessly moved into new product arenas which spoke to the same type of consumer, using their core competency. While you probably know that they went onto make sport equipment including sunglasses, sports visors, and ski goggles , watches, clothing, shoes and even prescription eye wear…. they started with a mad scientist in his garage (James Jannard) trying to invent a better rubber / plastic to make better motorcycle and BMX grips with. He ended up developing a material known as ‘Unobtanium‘. Their first ever grip was made of it… as are the Oakley 3’s above. It is still used today in many of their products and eye wear.

The really cool part is that James could see 3 important things:

  1. How else the material could be used in his categories of interest (Motorcross & BMX)
  2. Which other sports (many had consumer cross over) had a cultural & product usage fit for brand extension (Skiing, cycling surfing)
  3. How to cross fertilise design ethic and brand cache by focusing on multiple niche markets.

It really is a modern example of entering passion categories, entrepreneurial endeavor, elbow grease and marketing smarts that resulted in a 40 years of innovation. I happened upon this video that explains a little more on the history of Oakley (and the pivots it took) which I think is worth a few minutes of your time.

Thanks for the lessons Jim!

[vimeo=http://vimeo.com/18760239]

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Posted on by Steve Sammartino

This was just so brilliant I had to re-post it here in its entirety. The 12 most powerful words in business from Ragans PR daily.

Office conference rooms, cubicles, corner offices, and common areas are crammed with business jargon that dulls imaginations and saps creativity.

Many powerful words for business have nary a thing to do, directly, with industry.

1. Why

Polite push back can temper groupthink. Ask why “things have always been done that way.” Or ask why it didn’t work the last time you tried it.

2. Show

People like proof. They want to see things with their own eyes. It’s human nature. In trying to reach and win customers, clients, colleagues, or management, show your ideas with examples. Draw an analogy, give an anecdote, paint a picture. Help them see what you see. Show them, and they’ll be more likely to get it and get on board.

3. Goof

Trying something that didn’t work, as long as it wasn’t impulsively foolish, dangerous, or illegal, can be regarded as the trial run or first draft.

4. Reflect

Breathe, pause and collect yourself before you send an email while angry, take criticism too personally, or speak when emotion is clouding your judgment. The repair work required after you lash out is wasteful, unproductive, and inefficient.

5. Do

Sure, market testing and focus groups have their place. But business success takes action and plenty of doing.

6. Listen

Hearing is a function. Listening is a skill. It takes practice. But it yields immeasurable dividends. Extra points if you listen, consider alternative options and critical feedback, and adjust course because of it.

7. Learn

The staggering pace of growth in social media shows how essential it is to learn all through life. Learning can mean formal training, of course. But learning also happens by staying nimble enough to act when opportunities appear.

8. Open

Being open-minded—open to change, open to being wrong, and open to new possibilities—can lead to new products, new clients, new markets, and entirely new ways of doing business.

9. Respect

Civility eases differences among humans. When I was an editorial writer, my colleagues and I would gather each morning to discuss the official position the Cleveland Plain Dealer would take on the most controversial topics of the day.

Politics, religion, social issues—you name it. It worked well largely because the group was civil and respectful. And our boss was an awesome leader who made sure the discussions stayed that way.

10. Lead

Leading is much more powerful than managing. Think about it: You manage problems. You manage bills. Or you manage just to cope. Leading, on the other hand, is nuanced, customized, and inspired.

11. Fail

Fear of failing keeps people from doing all sorts of things: Piping up at a meeting with an idea, starting a business, or taking other risks. Failing is really an inevitable part of taking risks. And taking risks is an inevitable part of a strong business.

12. Regroup

After failing, it’s important to learn what when wrong and how to do it better next time. This is the true secret of missteps. Through the lessons learned in the aftermath, greatness can emerge.

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Pricing relativity

Posted on by Steve Sammartino

When I buy something via iTunes it doesn’t feel like money. Especially when it is an app that is a few dollars at most. It’s easy to press a button which confirms a purchase at a value which is lower than anything you can buy in the real world. A coffee or coca-cola is $3.50 these days. it doesn’t end there though. When we get the bill on our credit card it’s the smallest number on the page.

Mobile phone plan $59

Restaurant XYZ $179

itunes $2.99

Again – the comparative spend makes it easy to ignore it as inconsequential expenditure. Yet, for some reasons we’ll switch brands at a supermarket to save 15 cents on the purchase of toothpaste.

There’s an important lesson for entrepreneurs here, and that is the selling environment and immediate comparison.

Relativity.

How can we sell our brand in place where it looks cheaper than everything else on offer, as the biggest barrier isn’t how much money it costs, but how much it costs relative to the things around it? It turns out that what the price is, is not nearly as important as where the price is.

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If money didn't exist

Posted on by Steve Sammartino

If money didn’t exist what would we do differently? Let me first remind us what this would mean.

In this imaginary moneyless it would mean: That we all had enough to eat. That we all had a place to live. That we all have equal access to healthcare and education. That we wouldn’t get paid for our work. That no-one gets paid for the work they do, in dollars at least.

It means that we do in during the day has an entirely different perspective. In this imaginary world it make sense that we choose our line of work carefully. The work itself, becomes the thing that matters.

It turns out that this is also the best approach for a world that does actually have money.

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Invest 5 minutes in glass

Posted on by Steve Sammartino

This is an amazing piece from Dow Corning on the future of glass in our lives. It really sets the tone on how they will through their products make our lives better. It makes me wonder why more startups and large brands are not creating films about the future, and how they will shape it in a positive sense.

[youtube=http://www.youtube.com/watch?v=6Cf7IL_eZ38]

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The worlds first disloyalty card

Posted on by Steve Sammartino

Prufrock coffee who created the worlds first disloyalty card.

The card to encourages their clients to sample the wares of quality coffee shops around their local region in London. Which is completely counter intuitive to sound business practice.

How does it work?

If a disloyalty member tries all 8 coffees on the above card , it will earn you a free coffee at your next visit to Prufrock Coffee. The interesting part is that it was conceived to keep ‘coffee customers’ out of the four walls of the ever encroaching Starbucks behemoth. The disloyalty card created a community of coffee lovers that could compete the ‘way of an artisan’. Something Starbucks could never do. It might just help keep them out.  In this instance the community matters more than the trader. This is the new collaborative world we are in transition towards. A community who vest their interests in each other.

What can your startup do to flip the rules and do what a bigger competitor never could?

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