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Drew McLellan Drew McLellan   Bio
08.08.07

Do Companies Look in the Mirror Too Much?

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We have all seen companies that are constantly pushing to re-invent themselves based on what the competition is doing, or who spend too much time benchmarking their own efforts. Over at Harvard Business Online, Erich Joachimsthaler suggests that if the companies expended their resources studying the consumer rather than themselves and their competition, they would move from just a competitive advantage to a customer advantage.

Erich uses four new airlines as examples: Eos, MAXjet, Silverjet and l'Avion are doing things far beyond modifying their menu or adding better seats.

He says:

Four chic but cheap business-class start-ups, Eos, MAXjet, Silverjet and l'Avion have launched all-business-class flights on the incumbents' most profitable routes from London to New York with huge success. They offer new services for business travelers that are so obvious and valuable: extremely late check-in, fast paths through the airport to avoid the masses, guaranteed luggage immediately upon arrival, private departure and arrival lounges, and all-business-class seating at very reasonable prices -- even as walk-up fares. Two years into the launch it is clear that business travelers are taking great liking to these new airlines, which are beginning to get a lot more attention.

What do you think? Does he have a point? Do you (or your clients) focus on the minute details rather than really taking their industry by storm? Do you think you can discover radical change/fresh ideas while looking in the mirror or peeking into the competition's window?

I think we'd all agree that spending some time looking at how to improve what we're already doing is important too.

So, how do you find the balance?



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Comments

Drew, although these companies are niche players serving a niche market I applaud them for taking a look at the current airline market and asking "what could be done different", --which quite frankly is a lot!

A fresh approach in the airline business has started the successful launch of Jetblue and soon to be Virgin America.

Bigger question, what major domestic carrier is going to take a fresh approach and customer centric view, instead of doing things they way they've always been done? Continental is on the right track, in my opinion.

Posted by: Paul Barsch | 08.08.07

really interesting!

Posted by: SEO Company | 08.08.07

Paul,

I agree with you -- the question is who among the major players can look beyond their own problems and see the opportunity.

Someone is going to step out from the crowd. I see the airlines trying little band-aids but the problem is much bigger than that.

I also think the adversarial relationship between the airlines and their own employees is going to make the going even tougher.

If your employees aren't behind you...you've got trouble.

Drew

Posted by: Drew McLellan | 08.08.07

Paul makes a great point that these are niche players. Reflecting on Drew's point, though, I wonder how we might take a product designed for the masses and give our customers the sense (in perception or in fact) that it was designed exclusively for them.

It's certainly worth pondering. In any event, it will require keeping a channel open with the audience.

Posted by: Cam Beck | 08.08.07

It almost seems like most companies have forgotten the consumer and have become obsessed with their competition. I think it's a natural reaction that takes a real effort and bravery to overcome when the competition is making ridiculous statements - OK lying. I know, in our business, seminar information, we have always tried to put our customer first but when the competition starts playing games it's hard to resist fighting back directly.

Granted while it is nice to sit on the plane and watch TV rather than stare at the headrest in front of you - I'd rather leave on time and get to my destination on time and with my luggage and if the competition can provide me with those services I'd definitely switch carriers.

Mona Piontkowski

Posted by: Mona Piontkowski, Irvine, CA | 08.08.07

Cam,

That would be quite a feat, wouldn't it? And boy, would they own the friendly skies!

It would take being willing to literally change the industry by changing their own business model. Or die on the vine.

I wonder if they realize that they will soon be faced with that choice anyway?

Drew

Posted by: Drew McLellan | 08.08.07

Mona,

You bring an important element into the mix. Human nature.

It's natural to want to defend yourself or your industry, so we have to be on best behavior not to be dragged into the dirt.

And...when thinking about the consumers, we need to be very careful that we remember that what one person wants may not be important at all to the next.

One of the reasons why people don't pay as much attention to their consumers as they should is because it's not an easy task.

Drew

Posted by: Drew McLellan | 08.08.07

Just what I was thinking. You can't be everything to everybody. But to the majority of travelers, especially if they travel often, price is quite important because the travel accommodations are used for utility, not enjoyment.
Unless we get a really bad experience, then it's a matter of price differential in the comparative analysis before purchase.

Posted by: Mario Vellandi | 08.09.07

Having an airline background my self, I would reinforce what Mario said that travel accommodations are used for utility not enjoyment. And what Mona said that what's more important is to arrive safely and on time.
We have a saying in the airline business that all airlines are the same unless something wrong happens. In-flight entertainment, seats, fares are all very important but they don't mean a thing versus late arrival, lost luggage or a canceled booking. This is where the credibility of the airline is on the line.
Back to our topic: looking in the mirror. This is widely noticed in the airline industry as well as other industries. My note is that the market gives a great credit to innovative thinking. And I agree that if corporations turned an ear to the market rather than the competition they would create what you called a "customer advantage" rather than "competitive advantage" and that's way more valuable.

Posted by: Majd Awary | 08.09.07

Having worked inside a corporation for many years, I can attest to how easy it is to be consumed by internal business issues--they're up close and personal. On the other hand, customers--and even competitors--are out there in the distance, almost abstractions. It takes a lot of discipline to get yourself mentally and physically outside the box.

Posted by: Brad Shorr | 08.10.07

Majd and Mario hint at an important, larger point that bears further discussion for another time (I know Harvard Business Review has at various points): consumers can, and will, compromise their expectations and standards when firms and an industry decrease the quality and quantity of their options.

In general, smarter firms, especially upstarts, have the advantage of knowing established firms are *so* customer focused along certain segments, or tone-deaf to their entire base, that they can properly identify opportunities to exploit through price, quality of experience, range of service options, better products, etc. .

It's all about balance-- not all about the customer, firm, or competition.

Posted by: Ryan Turner | 08.10.07

Majd and Mario hint at an important, larger point that bears further discussion for another time (I know Harvard Business Review has at various points): consumers can, and will, compromise their expectations and standards when firms and an industry decrease the quality and quantity of their options.

In general, smarter firms, especially upstarts, have the advantage of knowing established firms are *so* customer focused along certain segments, or tone-deaf to their entire base, that they can properly identify opportunities to exploit through price, quality of experience, range of service options, better products, etc. .

It's all about balance-- not all about the customer, firm, or competition.

Posted by: Ryan Turner | 08.10.07

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