Insights Blog

One of the central tenets of modern economic theory is that open competition is good for consumers and creates greater overall value. Our feature for this week, LG, has embraced this concept and as if competition in the cellphone market was not fierce enough, it has created and channeled forces of internal competition within its own walls. The article in the WSJ on July 21st, Korea's LG Dials Up Cellphone Growth, Gaining Market Share on Rivals, explains how LG appoints a Product Business Leader (PBL) who is responsible for every cellphone product from the moment it leaves the labs. Given that there are 50 product releases a year from LG, of which only a few succeed, the competition for success is intense. Fostering the individual responsibility and pride in bringing great products to market, has allowed LG to post impressive growth numbers with predicted growth of 10 to 12% in a market declining by about 10% and a gain in share while larger competitors such as Nokia and Samsung are either losing share or barely able to keep volume steady.

With so many stories about cutting back, laying off, hunkering down, riding out the storm and in general working to defend and preserve what they have vs. taking new ground, it was great to read an article about going on offense for a change.

Everyone agrees... we live in interesting times. But as we deal with a world gone topsy-turvy there are also opportunities. To capitalize on new trends, to gain share from weak competitors, to try something new.

The recent global financial crisis has affected many of us as business people and consumers. Some of the questions that come to mind are: 1) Exactly what are the changes in customer and consumer behavior that effect our business? and 2) How long will those changes last? Although many changes have not been identified or understood, I think most companies will discover long-lasting changes that will impact their marketing strategy.

The world seems to have suddenly discovered risk. It is natural in times of upheaval for people to question the continuity and predictability of the current state. During times of war or natural calamities, people come face-to-face with the fragility of their life assumptions. The fact that the current upheaval is the economic storm ripping through people’s lives across the world today makes it a disruption of unusual dimensions with uncertain effects.

Rapid Response in a Challenging Economy. Segmentation may not seem to you like a short term tool for rapid response to changing market conditions. But it can be. You should review your current consumer segmentation and refresh it or re-draw it right now.

Segmentation may not seem to you like a short term tool for rapid response to changing market conditions. But it can be. You should review your current consumer segmentation and refresh it or re-draw it right now.

The economy is in a recession, the financial markets are all over the place, and customers are hunkering down and pulling back on their spending. With the notable exception of Wal-Mart, Taco Bell and McDonald's, companies nationwide are struggling with sales. Decision making across the board is frozen because of the unpredictability of the market.