Business Strategy

A Cautionary Tale of Failing to Continually Innovate

September 2, 2011September 14, 2011 by Chris Banescu

Motorola RAZR phone
In the global phone handset market Motorola went from the market leader to market laggard in just six years. Its earnings fell from US$4bn to $0.6bn and its share price from $180 to $46 over this time. Theirs is a cautionary tale of what can happen when you fail to recognize the changes occurring in the wider market and how quickly customer expectations can change.

How could the company that first invented the mobile phone 35 years ago and then hold the No. 1 market position for most of the next three decades make such a bad error in judgment?

Motorola’s demise actually stemmed from its greatest success – the RAZR handset. Launched in 2003 the ultra-thin handset with the clam shell appearance sold a staggering 110 million units over the next four years. Its impact was so extraordinary that the industry magazine PC World rated it #12 in The Greatest Gadgets of the last 50 years. Buoyed by this success the company introduced nine separate versions of the RAZR in quick succession. [Read more…]

7 Steps to a Culture of Innovation

July 25, 2011January 17, 2021 by Chris Banescu

7 Steps to a Culture of Innovation by Josh Linkner –
Hyper-growth companies often credit a culture of innovation as their primary driver of success. They deploy creative thinking to attack problems big and small. Here’s how you can too.

We live in a business world accelerating at a dizzying speed and teeming with ruthless competition. As most of the tangible advantages of the past have become commoditized, creativity has become the currency of success. A 2010 study of 1,500 CEOs indicated that leaders rank creativity as No. 1 leadership attribute needed for prosperity. It’s the one thing that can’t be outsourced; the one thing that’s the lifeblood of sustainable competitive advantage.

Unfortunately, most companies fail to unleash their most valuable resources: human creativity, imagination, and original thinking. They lack a systematic approach to building a culture of innovation, and then wonder why they keep getting beaten to the punch. [Read more…]

Building Online Trust: 7 Tips for Being Authentic Online

April 21, 2011April 29, 2011 by Chris Banescu

Being Authentic Online by Alice Hansen –
How can you make sure your brand inspires trust online? These tips will help your company feel more real—and build real relationships—through transparency and honesty.

A client working on her social media strategy asked me a couple of days ago for guidance on gauging the credibility of industry bloggers. She wants to cultivate mutually beneficial relationships with opinion-leading peers in her market space. Without actually meeting these people, how can one tell a legitimate, trusted expert source from a self-proclaimed one?

That question of whom to trust is the same for all of us when evaluating a business online. We look for basic data points to validate legitimacy. [Read more…]

Five Things You Should Never Say While Negotiating

February 28, 2011March 16, 2011 by Chris Banescu

by Mike Hofman –
Every entrepreneur spends some time haggling, whether it is with customers, suppliers, investors, or would-be employees. Most business owners are street smart, and seem to naturally perform well in negotiations. You probably have a trick or two—some magic phrases to say, perhaps—that can help you gain the upperhand. But, often, the moment you get into trouble in a negotiation is when something careless just slips out. If you are new to negotiation, or feel it is an area where you can improve, check out these tips on precisely what not to say. [Read more…]

Intel CEO Otellini on Successful Company Culture

February 16, 2011March 4, 2011 by Chris Banescu

by Rich Karlgaard –
(Note: Last week I sat down with Intel’s Paul Otellini to talk about technology in the 2-to-5-year future. Can Moore’s Law continue? What will smartphones, tablets and PCs look like in two years? I will publish our conversation in the March 14 issue of Forbes magazine. Meanwhile, enjoy Otellini’s riff on Intel’s amazing 43-year-old corporate culture. Steve Jobs may be the iconic entrepreneur/CEO of Silicon Valley, but Intel, I would argue, is the iconic culture.)

Name a Silicon Valley giant that has managed CEO succession well. HP hasn’t. Sun blew it. Advanced Micro Devices never adequately replaced Jerry Sanders. Apple dropped the baton repeatedly its first incarnation – Steve Jobs to John Sculley, Michael Spindler and Gil Amelio — and it’s too early to tell if Tim Cook can replace Jobs this time around. Larry Ellison still runs Oracle, and Cisco is only on its second CEO, John Chambers. Google has gone back to its founders, and Facebook is not even yet public.

Among large companies, only Intel has mastered CEO succession multiple times. [Read more…]

How to Turn Disaster Into Gold

February 5, 2011March 4, 2011 by Chris Banescu

by Jason Fried –
When one of our products malfunctioned, thousands of stranded customers erupted in fury. Yet we came out of the crisis more credible than ever. Here’s what we did.

It was a really lousy week.

One of 37signals’s key products is Campfire, a real-time chat tool for small businesses. For about a week in mid-December, Campfire, which users access via the Web, kept bouncing on- and offline. This was the first major problem we have had with Campfire since it launched in 2006. For a product that needs to be as reliable as the dial tone on your phone, things couldn’t have been worse.

Thousands of companies rely on Campfire. At 37signals, we use Campfire to run our business. Because we have employees in a dozen cities around the world, Campfire is our lifeline. It’s how we communicate with one another in real time. Campfire is where we make decisions, share designs, debate ideas, broadcast companywide announcements, and keep up to date on what everyone’s working on. [Read more…]

Eight Ideas for Small Business Success

October 6, 2010October 6, 2010 by Chris Banescu

10/5/2010 – Drew Neisser –
How petite Privé Products succeeded where giant P&G couldn’t.

Before I could even get in my first question, my hands were already covered with a soft liquid that transformed into a foamy shampoo. An excited Jackie Applebaum, the CEO of, exclaimed that “this is an unbelievable shampoo and never before has this been done in a can.” And before my hands were dry, she had me trying a non-aerosol mousse from a tiny 2.5 ounce bottle that Applebaum noted was “also blowing out the door.” This emphasis on unique products was both refreshing and enlightening, setting up this 8-point guide for small business success.

1. Create unique products to take the challenge out of marketing
With sales expected to rise 30% in 2010, obviously Applebaum is not alone in her enthusiasm for Privé’s new products. “The assignment I gave the lab is that I don’t want ‘me too’ products,” offered Applebaum. “We now have cutting edge products with cutting edge delivery systems that the market is responding to,” she added. While many small businesses feel out gunned by their larger competitors R&D departments, Privé decided that having unique products that “marketed themselves” would be the only way they could cost-effectively build their company. [Read more…]