Strategy & Execution. The Holy Grail of Winning Brands.

Strategy & Execution. The Holy Grail of Winning Brands.

Kindly excuse the length of this evergreen article, however, do focus on its content. It is intended to guide and inspire; so leaders can guard against competitors, counter unforeseen threats and think in a manner which fosters self-disruption in order to ward off complacency. That means implementing new business models which produce 10 times more in productivity or revenue. If the article is not appealing enough, please scroll to the Pop Culture section; read how Beyonce & J Lo's strategy changed mainstream America.

Strategy trumps money as well as smarts, but Customer Experience is the sticky which keep customers loving your brand, and Execution makes all the difference. We know wars are won on the strategy table long before soldiers get on the battlefield. Once we accept that, the next step is to assess the situation through the lens of the desired outcome. Then, create an infallible strategy which will hit the target and achieve one's aim. Hopefully, after reading the examples from over half a millennia, and recent occurrences, it will solidify why strategy is immeasurably valuable to all.

Amazon is not the only corporation in the world; however, if you are a big U.S. company, it's beginning to feel like it is. We start with Amazon because it exemplifies and embodies the triple threat qualities (1) Strategy (2) Customer Experience (3) Execution. Undoubtedly, we know Amazon harbors gargantuan ambitious with an unquenchable zeal. Given the rate and pace of quality execution in disparate industries; it is perhaps one of the best managed companies globally. Almost every two to three months, it is releasing a salvo of strategies which could be dizzying to follow. While you are still asking, and trying to understand why they bought company A, in an unrelated industry, they are already investing in company F, which is on a different continent. Case in point; buying Whole Foods, co-investing $2 Billion in India, dominating voice with Alexa and much more.

Why is Strategy Critical?

100,000 soldiers with an incompetent general will usually be on the losing side. However, 50,000 soldiers with a strategic leader could pull off the impossible.

Below are some of The Greatest Strategies of all Time

They are the stories of how the Davids overtook the Goliaths. How to carve out profitable niches at the ankles of behemoths. How to become a leech and suck unbloody profits from the big corporations. How to be the saving grace to a multitude of corporations with a common problem. How to become an economic castle protected by unbreachable moats. The list goes on and on, it's a must read.

How to Win as a Person or Corporation?

Since the only thing which never changes, is change, in life and business; we have to be connected to the Zeitgeist of the moment, be immersed in it, or find ourselves irrelevant. We have to be open-minded to trying new things, realize once it's time to change and be flexible enough to diversify before it is too late. For individuals we must develop expandable mindsets. Given the inevitable obstacles of life, this apt quote from Winston Churchill should help. "Success is not final, failure is not fatal; it is the courage to continue that counts." The new way for corporations to win today is by having a Chief Idea Officer (CIO), one who doubles as the Corporate Strategist.

(1) BUSINESS LESSONS

Apple: Yes, they have great products, but it is not just their products. It was, and still is the psychological marketing genius of entering people's mind to plant an altered perception. After a protracted time of launching great products; a well-executed multiplicity of stratagems will give any company the same aura and halo effect which emanates from Apple's golden crown. Lest we forgot, people connect with people. Companies still need a great salesperson to represent the brand and hopefully command a cult following. We are all aware of Steve Jobs well-rehearsed and choreographed effect. A few years back, Apple's products were in a lot of movies, TV shows etc. That could have been part Apple, and partly those shows portraying an air of sophistication, by saying we know this is in vogue and will make us look cool. Additionally, we will enter into their conversations. Hence free marketing for Apple, because they made themselves unavoidable.

Marvel: People may not remember but Marvel Comics was almost bankrupt in 1996. Then they leveraged their IP, went to Merrill Lynch, brought in new executives and went to the big screen. Something they wanted to do since the late 80s. They produced their own movies and banked the profit, which helped going from almost zero to hero. Decades ago, I was not interested in comic movies, neither were girls or most women in general, today I watch them. Guess what, women watch them too. Perhaps it is the big-screen and cameraeffect. As a boy, I would flip through the pages and admire the artwork, because I drew. However when X Men, Spider Man, Blade, Iron Man, Hulk and Thor came on the big screen, everyone from 5-year-olds to 50year-old grannies, became fan boys overnight. Marvel did not change their business; they just focused on what will generate substantial revenue.

The magical moment was when movie technology caught up with comic storytelling skills, and they had the funds to finance their movies. Without these strategies, Marvel may have died, so will all of Stanley's, Jack Kirby and Steve Ditko's IPs. Although I doubt the last part, some company would have purchased the IP. In 2009, Disney acquired the brand for $4.3 billion.

Betamax vs VHS

The competition between Sony's (Betamax) vs JVC's (VHS) was fierce, nothing like Coke vs. Pepsi. Even though Betamax had a better picture and sound quality, after fighting for years, JVC's operational and partnership strategy proved better. The nail on the coffin strategy was the combination of partnerships and alliances. While Betamax's slogan was (Watch Whatever Whenever), VHS partnered with the nascent video rental companies; Hollywood Video, Blockbuster and That's Rentertainment. Betamax probably thought its parent company's brand name Sony, was powerful enough for direct to consumer with minimal effort. Betamax was first to market in 1975, its video cassette tape played 1 hour movies. Then VHS came along with a lighter and cheaper device. Its tapes played 2 hour movies. That was a huge competitive advantage, because Indian and Chinese movies which were global in the 80s extended beyond an hour. Consumers no longer had to spend extra buying one movie on two tapes. Short-term Betamax made extra money on the second tape, long-term, it lost the entire business. VHS market share grew bigger, until it totally eclipsed Betamax. Now it is a business case study of how the upstart toppled the behemoth.

Smart Enough to Compete With Google or a Suicidal Thought?

That's the beauty of thinking big and unconventionally; if done the way Swiftype executed, you may win, and be considered smart. You don't have to go head to head with Google as Microsoft did with Bing. Google is too big and entrenched. Swiftype decided to give companies their own customized search engine integrated into their websites. They were smart enough to stay clear of using the word search to appease investors. It also signaled to users that it's a product they need, after showing them the value. Some of their clients; CBS, BMW, Samsung and others, now have a wealth of data as a result of knowing more about consumers, because they use Swiftype. HomeToGo's operations strategy is also a great way to get into the search business. Have a narrow focus in a specialized, but huge market. That way Google is not interested or wouldn't do a good enough job even if it competes with you.

Making the 80s Headphone a Coveted Device in 2018 and Beyond

How did we regress back to the 80s with the retro headset? How did beats bring back the equivalent of the 80s boom box headphone? Beats achieved that by having one of the best music producers in the world and business executives aboard, Dr. Dre and Jimmy Iovine. That was the first step, their credibility, expertise, connections, coolness, understanding of the market, and industry clout, helped immensely. They identified a problem; Dre said when he listens via earphones he hears more instruments and arrangements, which is true. There's also the feeling of enhanced immersion. They proceeded to design Beats headphone beautifully and branded it exclusively. Their Ads were brilliant, and product placement was laser focused. Beats focused on teens and millennial, coupled with product placement using NBA stars, and insertion in Hip Hop music videos. Apple with all its global power lacked that authentic connection. If Beats branched into digital music, that would have been a huge problem, hence the $3Billion acquisition.

Can an Upstart Topple Nike & Adidas?

The right strategy can make any dream a possibility. Today's teens and millennials are into consumer tech, if you can capture and hold their attention, you already have them. Shiftwear possesses the fundamental ingredients to enter the market, make a huge dent and take market share from incumbents. Shiftwear's shoe idea is brilliant. All that is left is a killer strategy and a series of campaign onslaught to become a national or global brand. I've never being a trainers guy (UK), called sneakers in the (US). However, I would certainly buy a pair or two Shiftwear. I only have a pair of limited edition gold classic Nike and a brown Adidas.

How Amazon Won and Continues to Win Over its Competitors?

The above question is akin to asking, how did David kill Goliath? Simple answer, everyone and company has a weakness, find and capitalize on it. One should be cognizant, but not scared of competition because there's always a creative strategy. If executed perfectly, it will make you a winner. Walmart was king of Cash, King of Retail and King of Technology. Everyone already declared Amazon dead by renaming it Amazon.Toast and Amazon.Con etc. Going head to head with Walmart would have been a death sentence; instead it lowered its margins as low as possible, to increase sales volume. It maintained the strategy for years and gave a deaf ear to Wall St, even though it deflated the stock price, with time, Amazon took most of the market share. Obsessive focus on the customer paid off and became evident in later years. In the beginning, it was simply an efficiency and price war game. Barnes & Noble's late entry or lack of focus on eCommerce propelled Amazon forward, and gave it a huge leg-up to inflict irreparable damage.

How Boxed is Thriving Despite Being on Amazon's Turf.

Boxed found its niche where Amazon was not so strong, or not interested in. Boxed focused on serving rural areas, or markets with 50,000 people or less communities. 30 million people in the U.S. do not live within a 30 minute drive from Costco. That was vital for Boxed. Although Amazon is a ubiquitous brand, it lacks customer facing locations. Boxed also focused on the B2B niche where Amazon is not strong. Boxed generated $40,000 in 2013 sales, which rose and was trailing 9 figures in 36 months as of 2016. Their ability to focus on Customer Experience for family wholesale helped, and still helps a great deal.

A Saving Grace for Retail Corporations

Shoprunner is an online multi retailer alternative to Amazon's Prime service. In order to be attractive and competitive, it is aggregating an army of brands against Amazon. Fulfillment and last mile operational logistics are tough and expensive; since there is strength in numbers that is Shoprunner's secret sauce to being successful. Listen to Sam Yagan talking about his company's much needed solution. It's Amazon Prime for everyone else; free 2-day shipping and free return from 140 plus merchants.

Netflix Upended Blockbuster

Netflix, has changed its business about three times. It started by physically mailing DVDs when Blockbuster expected patrons to come into the store. It was convenient; no late fees, if a video got lost in transit, there was no penalty. They've always operated a SaaS model, which simply means Solution as-a-Service. It went from mailing DVDs to Online Movie Distribution to New Movies on Netflix, Original content shows to Netflix Exclusive Movies (all funded & created by Netflix). In 20 years, they've reinvented themselves several times. If Netflix didn't execute fast enough, just as music started streaming online, someone would have thought of doing the same with movies. The company has been innovating for two decades and continually disrupts itself. Although others are making inroads, the gap, branding, content and excellent service put together, are just too powerful for competitors.

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