In our rapidly changing world, adaptability is essential. The strategies and decisions that yielded results yesterday might not be as effective today. By actively engaging with and updating our mental models, we position ourselves to adapt swiftly to evolving circumstances. This ensures our decisions remain timely and anchored in the present.
Yesterday I received a WhatsApp from a famous shoe company. A catalogue. The local store manager shared that with me and followed it up with a phone call to enquire if I have any footwear needs and assured that they will provide an immediate resolution. Although I appreciate the intent,…
The door to the magical realm is open! Are we awake? Traditional Pharma Business Model depended upon face to face visit of Medical Representatives to Health Care Practitioners (HCPs). Covid-19 pandemic makes it challenging to carry out the same. Therefore, like all other industries Pharma Marketers as well are in…
One of the many ways of influencing patients to adopt healthy habits is by improving healthcare communication. Traditional persuasion messages used in healthcare have a limited impact and are based on approaches using sanction and punishment (Carrot and stick model). Emerging evidence shows how emotions and immediate surroundings influence the…
Going digital is not about Social media or Omni channels. Is it about asking simple questions.
Best Buy is one of the largest electronic good retailers in USA. Few years ago Best Buy was threatened by what is now known as Showrooming effect. Basically customers would walk into its showrooms get benefitted by the advice of the salesperson, decide on the model and then go online to buy the product on Amazon because of low prices. Despite having one the best footfalls in the decade Best Buy recorded reduced profits. Although it did try to Price match Amazon they knew it was not a long-term solution because of its cost structure (Physical showrooms, salespeople etc). They couldn’t block the customers from checking price of product on Amazon. Future looked uncertain, everyone thought game over for Best Buy which was the case with many other retailing giants. No amount of investing new technology would have helped Best Buy .
Best Buy relearned how to make profits. Best Buy proposed to the manufacturers that they compensate Best Buy for exclusive showcasing of manufacturers new products. Manufacturers also could launch specific brand kiosks within Best Buy showroom for a fee. This new model which had zero investment for Best Buy dramatically increased its profitability.
Is this a ground breaking innovation? Of course NO. This has already been practiced in other industries but for the first time tried in Electronic good Retail. Best Buy realized apart from consumers it created lot of value for manufacturers therefore it captured the value lost from consumers from manufacturers.
What is my business? What is my business ecosystem? How do I currently make money? How changing one thing impacts my ecosystem? What are the options available?