7. Change : Product to Customer Solution
• What is our “offering” – Product / Service or a Customer Solution ?
• Watch – is it used to tell time?
• It’s a status symbol or a piece of jewellery!
• Mobile service
• Started with “talk anywhere”
• Message anywhere
• Email anywhere
• Now – BANK or SHOP anywhere!!
• Are bicycles :
• Commuting mode
• Fun & Recreation gizmos
• Fitness equipment
8. Change : Price to Customer Cost
• How does customer pay ? What does she pay ? In relation to what ?
• Shampoo sachet
• Micro Finance
• Computer Printers
• Maruti : Complete “cost of ownership” – Cost of Acquisiton, Usage and
finally, disposal
9. Change : Place to Convenience
• Nearby dukhan – kirana store
• Large format stores – a shopping experience, weekend outing,
entertainment centre
• Internet shopping
10. Change : Promotion to Communication
• Schemes : Inefficient way of delivering higher sales
• Dramatic rise of Internet Advertising
• Social media – very well used by Firefox and….Hero too for MTB Himachal
• Amazon and other e-commerce sites : “suggested products”
11. Change : who or what is competition ?
• Who or what is the biggest competitor to Canon ?
• Apple or Samsung!
• Which is biggest competitor for Kids bikes ?
• Computer / Video games!
• Who or What is biggest competition to Standards ?
• Motorbikes or…………Metro!
12. Change : Corporate Performance & Capital
• Traditional :
• Sales Turnover, Profits, Growth
• How do we explain :
• Turnover of around 40 mill $ per annum – “VALUATION” of $ 21,800 million
• Amazon – P/E ratio of 550 (compared to Google 29, eBay 25, Walmart 2)
• Examples of new metrics
• Customer Acquisition (WhatsApp)
• Business model (Flipkart, Snapdeal)
• Value capture (Uber)
• Entrepreneurial innovation (SpotHero)
• Capital chasing Ideas
13. When the rate of change in the External
environment exceeds the rate of change
Internally, the end is near – Jack Welch
