Amazing Amazon.
Founder Jeff Bezos has much to answer for. Among the bouquets are countlessbrickbats. Numerically, financial failures have exceeded successes.
Few people have heard of the Fire phone. Even fewer bought one. Entry intothe highly competitive, sophisticated and dynamic mobile phone marketplace wasand is fraught. It was an expensive lesson for Amazon and Bezos – more than$US200 million. And yet there were no or few regrets. The lessons learnt wereinvaluable a unique KPI (key performance indicator).
Amazon has moved on from Fire phones.
Significantly, those involved in the design, manufacture, distribution,wholesaling and retailing of the failure were encouraged to keep thinking big.Risk tolerance was resilient. Risk aversion was discouraged.
This is an encouraging cultural value which persists in the midst ofcoronavirus. In such circumstances culture does eat strategy for breakfast.
BEYOND WORDS
Think big has been embraced by an Australian national radio station networkas its positioning statement. Upon reflection and on balance, question couldbe put to whether it is a projection of the belief of the broadcaster orexultation for, and to its listeners.
There is no consistent, universal evidence of programming and programs whichcharacterise the term Think Big.
Positioning statements should, indeed must, reflect core values.
Amazon’s abiding belief in, and adherence to, the Think Big philosophy isreflected in its commitments to the development of electric powered motorvehicles and space travel, to name just a few of its creative initiatives.
FAIL FAST
In commerce, failure is often a relative rather than an absolute measure.
Slower, inert management and leadership teams tend to be sensitive andreflective to even small scale and limited numbers of failures, and suboptimalperformance initiatives and endeavours. Consequential costs seem large in arestricted, relatively static portfolio.
Not a lot has changed over decades. Products and services powerhouse 3M prideditself in having at least 60% of its product/service range having beenintroduced to the marketplace within the previous five years, at all times.This was dynamism personified and was a key driving force, before “disruption”became fashionable and a mantra for entrepreneurs and start-up businessleaders.
Individual concept, product and service failures were deemed to be incidentaland stepping stones to bigger things in an ongoing journey, which dictated,that all and sundry moved on.
The same principles apply to small and medium sized enterprises. It’s simply amatter of scale. Significantly, scalability applies to growth, contraction andapplication. Lessons have relevance and benefits, regardless of size.
MOVE ON
Fast fashion has superseded many of the established philosophies and practicesof traditional ‘bricks ‘n’ mortar’ fashion retailers.
Stock-turns (a true and accurate measure of business performance based on therate of turnover of inventories) have accelerated.
Failures and underperformance of stock items and styles are registered,analysed and rapidly archived. The focus is on volume, velocity andproductivity.
The bottom-line is typically, profitable. Margins may be squeezed, but morethan compensated by appealing cash-flows.
GET EDGY
Playing at the edges is usually time-consuming. Doing lots of things does notensure substantive outcomes. There is enormous evidence of such at present. Incontrast, being edgy suggests agitation, provocation and assertiveness. Suchattitudes and actions attract attention, interest and interactions,particularly when alternative and competitive initiatives are sparse.
Risk need not, and seldom is a consideration. Promoting and packaging presenceare initial steps in business development initiatives.
Some sayings in commerce are ageless. Remember:
Fortune Favours the Brave
It is the translation of a Latin proverb, which has a long history of use inthe military, and throughout the Anglo-Saxon world, as a motto for familiesand clans. It recognises that fear is the most inhibiting of factors.
ON BALANCE
Upon reflection, the most prevalent and dominant constraints on the economicwell-being of businesses are established policies, practices and processes.
Innovative, creative and entrepreneurs have recognised that in the currentpandemic-affected environment and marketplace there are no rules. “Open-minds”accept that scenario as an open invitation to make one’s own rules. As such,value judgements and comparative analyses are somewhat meaningless.
The metrics which measure performance aligned to, think big, fail fast, moveon,
are hard to qualify.
So, “do your best, and try for better”.
You’re on your way.
Barry Urquhart
Managing Director
Marketing Focus
M: 041 983 5555
E: [email protected]
W: www.marketingfocus.net.au
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