Minus the Wonk
14 years ago
Monday, March 30, 2009
Are These Really Our Strengths?
Companies these days are becoming ever more affluent on the culture of social networking. They see a market that is taking off and want to be a part of it, but they are unsure of how. I believe, however, that this is causing some questionable tactics to take place; the examples of Google, Yahoo, and Nike come to mind. Nike has a great concept in its customization platform it uses, however, it just seems like that type of customization that they now offer in store will soon take away from the Nike brand itself. I mean, if we go into a store, design our own shoe, what do we need the Nike brand for? The strategy will most likely be copied by other shoe makers (less expensive shoe makers more importantly), but have comparable designs. In similar fashion, Google and Yahoo want to create a social network platform from their ever existing email interface, however, you risk some customers from feeling invaded by the uncertainty of their privacy. It is important to have a social networking strategy, but a strategy that does not take away from the core strategy of the company.
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Chris,
ReplyDeleteEverybody wants to be unique in some way (this includes companies) and I have the feeling that many of these ideas are simply supplemental to the core competencies of a company. Sure, they may try to make inroads into other ventures such as user innovation or social networking, but I feel these are mere experiments, not necessarily a live or die strategy. Take Nike for example. Their core competency is to make performance shoes and apparel. The customization element is just one strategy of an overall strategy to make the best performing athletic wear out there. Google has its core competency in internet search, but they also happen to do some other things very well like e-mail and google docs.
This being said, I think these companies are trying to find a way to reinforce or even complement their existing strengths. They may succeed or fail, but either way, as long as they don't detract from their core competency, they'll be okay.
My two cents:
ReplyDeleteI wrote about the same topic and I have to say that while I think it is important for a company to stick to its core benefits and strategy, that opening itself up to trying out different ideas is important for a company's growth. Adapting is important, especially with as much competition as there is in the online community. Companies that mimic other ideas (like Google and Yahoo branching into the world of Facebook and MySpace) just have to be sure they bring something new to the table, too.
Did you notice that for many of the corporate blogs we had to look at for Assignment 1, the bloggers tried to directly link social networking to the strategy of the company? Kodak comes to mind with its use of guest bloggers who talked about Kodak products interlaced with charity events or artistic ideas.
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