Cristiano Ronaldo Left Soccer To Master Chess (A Company Losing Focus)

an organization losing focus
Imagine that, if you are great fan of Cristiano that means you are his fan for what he does on the field now you would love him as long as he do great at field now if he decides to leave that arena and go for playing chess to try his luck.

You would probably stick around for a while but eventually you won’t like it and go for some other player who is good at soccer as you love soccer not chess. That’s what happens when a company starts a dumb transition from what got her huge market share to something absurd and eventually end up as nobody.

I say if it doesn’t work for some individual (Critiano Ronaldo for instance) who is famous world around and probably knows himself well then how come it would possibly work for an organization.

This strategy is really devastating when you have huge following in one thing and you sort of try to make them having the same level of interest and urge to purchase something else. The transition from one product to another is dangerous but far devastating could be transition from product to service.
Still I would suggest some steps that would help any organization in its transition but like I said it won’t be easy.

(Addition & Transition) Goods To Services

  •  First of all for an effective transition (or addition of services to goods) from goods to services as leading firm in the market you should conduct a thorough market survey under your name and see if market really would love to have your services. If the response is favorable then go for the next step or else as an organization you should take the unfavorable response as the red flag.
  • Second step is to constantly remind your customers and in separate manner. Means before implementing transition from a product to service you should be constantly reminding your target market about your plans. This reminding campaign should not be mixed up with your product campaign rather should be carried out completely in isolated manner so to achieve the results but also to not confuse the customers.
  •  Step three conduct another market survey to measure the market receptivity regarding your new service. If the results are favorable go for next step or get back to second step and take corrective measures in your reminding campaign to attain the set level of receptivity. Remember the survey should be thorough and covers a large sample
  • Final step, once the results are positive then go for transition or addition of service to your tangible product line.

An Example To Consider

Apple did a great job in changing the concept of phone and it was that which gave it the leading edge (in smart phone market) and if you can’t do it anymore (providing superior product that in this case is iphone) and others (Samsung) can or if you are planing transition to something that doesn’t provide you the edge, you are following the wrong strategy.

That’s why we are seeing there has been 50% increase in brand worth of one of its rivals “Samsung” (for 2013) while Apple on the other hand has 1% increase in current year 2013 as per Millward Brown Optimor BrandZ list in May 2013.

While on the other hand the brand worth and market position remained relatively stable or increased for brands who didn’t went into any service addition like for instance Cocacola.

Brand
year
Position in market per brand
Percentage change
Brand worth in $m
Coca-Cola
2006
3rd

41,406
Coca-Cola
2007
4th
7% positive
44134
Coca-Cola
2008
4th
17% positive
58208
Coca cola
2009
3rd
16% positive
67625
Coca Cola
2010
5th
1% positive
67983
Coca-Cola
2011
6th
8% positive
73752
Coca-Cola
2012
6th
1% positive
74286

Brand
year
Position in market per brand
Percentage change
Brand worth in $m
Apple
2006
30th

15976
Apple
2007
16th
55% positive
24728
Apple
2008
7th
123% positive
55206
Apple
2009
6th
14% positive
63113
Apple
2010
3rd
32% positive
83153
Apple
2011
1st
84% positive
153285
Apple
2012
1st
19% positive
182951

The above brand values are taken from the brandz list. What we see is 55% jump by Apple coming up from 30th brand to 16th that was the year of Jesus Phone, and next year astounding jump suggests iPhone 3g which went on release in 22 countries that year.

What it suggests is that the people loved Cristiano and they loved it till 2012 when suddenly he went for chess (itunes, icloud, istore and Apple TV) to try his luck. Since that transition Apple has seen so far 1% increase in its brand value in 2013. While at the same time its Samsung that is leaping like Apple old days (with its Galaxy S4).

Anyway if we look at Coca cola we see them being constantly into product, into things that consumers love from coca cola. Perhaps they do thorough surveys now and then and that why their spot and brand value hardly went through any fluctuations all these years. Apple should learn a thing or two from coca cola.

Bottom Line

The bottom line is stick with what you do the best and what got you to the top. Don’t lose focus and do it best from the last day if you want to be on top.

Point to Remember

      After high growth and high sales that means you convinced your customers of one thing and now moving to something else would disappoint them. So you better stick to what you offer, that thing which bought you the top spot. And that’s flat! ;p
   

About Publisher Arshad Amin

Certified SEO Professional, Small Business, Start-up, Marketing Expert with ton's of practical, actionable ideas, insights to share, Proud Founder and Owner of www.easymarketinga2z.com and www.topexpertsa2z.com

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