Sunday, October 31, 2010

Management Strategy:Free Plus Premium=Freemium Strategy, Part-II

In the change management concepts we come across many new basic fundamentals of Freemium.

This particular strategy has been very up coming strategy which can be used in new product position, branding, customer acquisition, up selling ,cross selling and of course the customer loyalty.

Many a time customers are skeptical about the new product and services, rather un aware about the usages of the new product and services.

1. The unique strategy is to give away some of your good product and services as a FREE to your new customers or even existing customers.

2. This strategy is a deliberate strategy by which you advertiser about your services or products. The new prospects/customers get a feel and gang about your products and services. They can give a feed back after the usage of the product and services of the new product or services.

3. The change strategy is about creating awareness in the mind of the customers. It’s a Use-Feel-Get Happy strategic business model for change management for the firms.

4. This can also be a strategy for crowed sourcing; you make a feel good proposition to all your customers for the services and the products that you innovate.

5. Particularly in many Blue Ocean start ups these sort of freemium strategy can be used.

6. In my point no 3, I talked about feel good factor, this is easier said than done. As usual customers now days are very well aware and informed about the availability, features, pricing of the products and services and value it can add to them. Playing with customers sentiments rather physiological selling are part and parcel of modern business strategy.

7. In today’s highly competitive business world and technological innovation happening rapidly coupled with globalization, you need to have new customers across the world, rather we all looking for new customers around the world to get in to the scalability of our business model. Freemium can work wonders in these cases.

8. “Inside-Out” it’s all about a me-too products, freemium works very successfully and if you have any bugs you can fix them and go for “Outside-In” products and services.

9. If a tiny fraction of the customers buy’s my “PREMIUM “product at a premium price, the strategic business model is through.

10. So my business model has to be such that low break even points must be kept in mind.

Hope you enjoy reading about the freemium business model strategy. In the contemporary management concepts many firms are adopting these concepts. In one my earlier post I have written about this concept. There will be another post on this Freemium concept..

Thursday, October 28, 2010

Dr. Kenichi Ohmea’s New Concept Of “CYBER LEADERSHIP” In Strategic Change Management.

Dr. Ohmae is famous for his “3C Strategic Business Model” and many firms adopted this practice and found it very useful and it’s widely acclaimed.

His thinking and analytical process has been widely accepted by many industries around the world.

Dr. Ohmae for twenty-three years was a senior partner in McKinsey & Co, Japan. the internationally famous management consulting firm.

As a co-founder of it’s strategic management practice, he served companies in a wide spectrum of industries, including industrial and consumer electronics, finance, telecommunications, food and chemicals.

Recently in an interview with HMS America he came out with a new idea of CYBER LEADERSHIP.

As we are moving in the cyberspace at an exponential speed and Business
Leadership is an ever evolving topic as there are tremendous
“Business Leadership Bankruptcy” problem round the world.

Cyber Leadership can be wonderful concepts, as with the help of high speed communication and internet bandwidth availability, with economies of scales setting in with the massive penetration of internet and netizen round the world.

With borderless world concepts CYBER LEADERSHIP can provide wide applications round the world.

It’s basically the human intellect, knowledge, and capability and capacity which matters to be an effective leader. This can be found at any part of the world and can be widely propagated to fill up the “Global Leadership Bankruptcy” problem.

All firms looking forward towards strategic change management. This can only be possible from effective leadership drive and management initiatives.

Cyber Leadership can help in boosting the Change Management process.

Tele presence, VoIP, and with latest technologies at an affordable cost can really change the modern management space.

I think the change management consulting firm, may be the “Big Five or the Big Three”, charges exorbitant fees can take these Cyber Leadership concept and move ahead.

I’m sure cost will come down drastically and so called the “Leadership Bankruptcy” which is an acute problem can be easily eradicated.

His interview with HMS America.

Wednesday, October 27, 2010

Unique And Executional Strategist :Tony Hsieh The CEO Of Zappos.

Love the interview, hope you will enjoy it too.

Friend + Enemy = Frenemy. Frenemy Concept Should Be Used Strategically Must Be Used To Reap The Maximum Benefits.

1. Very commonly it’s used in the geopolitical and business world. As competition and business cartel is part and parcel of the professional business world.

2. Cartel formations are sometimes made with your know enemy who are basically your silent and known enemy, but you have too befriend them.

3. At times it’s difficult to do business with out your enemy. You can benefit from your enemy too. I think this the core concept of the frenemy strategy.

4. It’s not possible to kill the enemy in competitions, your enemy is too powerful to kill and unstoppable. That’s the time you compromise with your enemy without compromising your
specific advantages that you have got.

5. Frenemy concepts wonderfully work when you can identify your “Core Strength” and enemies “Core Weaknesses” compliment each other for mutual benefits.

6. Frenemy is an excellent strategy if it can be used properly, big firms gets rapid success with this concept .Google, Microsoft and many more at times “ the frenemy “ strategy .

7. Many big business opportunities are lost by firms as they don’t use “the frenemy “strategy properly.

8. Even the weakest competitor may have some strength which you don’t posses
“the frenemy” strategy can be used.

9. Mao said "Despise the enemy strategically, but take him seriously tactically.”
I think his political advice works wonderfully in the frenemy strategy.

10. People, firms, political parties do make mistakes in practicing the frenemy strategy. The hidden benefits of frenemy strategy is still unexplored.

Socially people are using this concept but you have to master this.
1. Don't make things worse. If your friend's nastiness only surfaces at certain times (for example, when she is stressed), try to avoid her at those times; you don't always have to make yourself available. When she antagonizes you, consider defending yourself, but tactfully so as to avoid adding fuel to the fire.
2. Keep a support system. "Make sure you have, or that you cultivate, other friends who are consistently positive and loving so you can remind yourself that a friendship doesn't have to be a love-hate relationship,"
3. Focus on the good. "If you really want to keep the love-hate friendship going, make sure you remind yourself of the traits about your friend that are loving and why you want to keep the friendship going, dwelling on the positive rather than the negative,"
4. It's your friend's problem. Even when confronting your friend, don't follow in her negative footsteps. Don't consider this situation to be your fault or let it lower your self esteem.
5. Don't let her get to you. Above all, don't let your friend drag you down. Instead, "maintain the positive, loving personality that you have despite her temporary or longstanding love-hate behavior,"
Courtesy: CNN/Life

Monday, October 25, 2010

FREE + PREMIUM=Freemium. Do Freemuim Strategy Works?

Do FREEMIUM Strategy works?

Yes it’s a debatable question, as we see lots of start ups coming up in recent times,

1.FREEMIUM is an important strategic tool for NEW Brand Building and New product perception building.

2. FREEMIUM is not at all new concept rather it is getting packaged in the new format.

3. FREEMIUM is very successful in the web business and the new cloud computing business or SaaS business models which are being generated today.

4. FREEMIUM is a short term habit formation for prospects.

5. FREEMIUM helps in relationship building.

6. FREEMIUM helps in long time relationship building.

7. FREEMIUM helps to cut down your advertisement cost and you can know your target customers accurately.

8. FREEMIUM can be used to co-create (Outside -In) a new product.

9. FREEMIUM can be considered as deferred revenue expenditure in other words active and involved advertisements.

10. FREEMIUM is an instrument for Push/Pull sale.

Again there are specific weaknesses of FREEMIUM. This particular strategy can not be used in all industry, especially in the Capital Expenditure industry.

If FREEMIUM can be properly used it can reap a handsome dividend for new start ups.

FREEMIUM is like David.

It’s like “David and the Goliath”.

Hoping to see lot of FREEMIUM strategy and very much will be used in the Change Management strategy.

Sunday, October 17, 2010

Zappos:This Is Really A Change Management Strategy.Using the Internet To The Hilt.

After DELL Computers , the real internet strategic
business has been Amazon.Amazon took over Zappos.

I only think about the brilliant supply chain
antilogarithm that they have developed in order
to do an incredibly successful B2C business.

If the buyer of the shoe is not satisfied he will
return back the shoe with no shipment cost to the
logistic company.

I think this can be the most Unique Strategy for Zappos.
Clicking an idea is the most important thing.

All Retailers must have a look, and so called Digital Marketing
should give a rethink.

I think Zappos is an UNIQUE case study, can it really
be replicated in other business ?

Monday, October 4, 2010

RAM CHARAN The Management Guru On Executions & Change.

Prof. Ram Charan is a mind blowing management guru
conducting a live Workshop on Change and Execution .
The CEO Inside You is an excellent piece of work. I really
liked the book.
His flow in teaching is very smooth and lucid, make all complex
things in management.