How to Succeed in 2007

from CNNMoney
CNN asked 50 of the brightest minds in business how they do what they do - and how you can cash in on their advice in the year ahead.

1. Sergey Brin / Co-founder, Google: 'Succeed With Simplicity'

" ...We are focused on features, not products. We eliminated future products that would have made the complexity problem worse. We don't want to have 20 different products that work in 20 different ways. I was getting lost at our site keeping track of everything. I would rather have a smaller set of products that have a shared set of features..."

six sigma v. innovations

A very interesting topic: standartization versus innovations.

to read the article visit here


"... The mantra of Six Sigma "black belts" is DMAIC, for "define, measure, analyze, improve, control." The "sigma" refers to the Greek letter, which in statistics is used to measure how far something deviates from perfection. The "six" comes from the goal to be no more than six standard deviations away from that perfect measure.

Innovation, by contrast, can be messy. It is hard to sum up in a simple statistic and requires a healthy tolerance of failure. "Innovation is, by its very definition, based on the idea that the value resides in the introduction of something unexpected," says Dev Patnaik, a principal at Jump Associates, a design strategy firm in San Mateo, Calif. When it comes to the breakthrough product, or the game-changing strategic shift, Six Sigma fans can "have all the wrong reflexes," says Rita Gunther McGrath, a Columbia Business School management professor..."

A good point. I am curious - if you ask startups if they folowed six sigma, what they would answer? In IT 'six sigma' ideas would probably sounds 'idiotic'. What about other mature industries? If you compete against somebody equipped with six sigma. Would you do the same? If yes - 'attrition games' and you are doomed. If no - you would possibly try something different. Not incrementally different, but drastically different. I am not sure meaning 'drastically different' can be desribed within six sigma. As to the "big names claimed" innovations - are they coming from the six sigma theory or the big boys simply bought ideas from those without sigma in mind.

" ... Others agree that Six Sigma and innovation don't have to be a cultural mismatch. At Nortel Networks (NT ), CEO Mike S. Zafirovski, a veteran of both Motorola and Six Sigma stalwart General Electric (GE ) Co., has installed his own version of the program, one that marries concepts from Toyota Motor (TM )'s lean production system. The point, says Joel Hackney, Nortel's Six Sigma guru, is to use Six Sigma thinking to take superfluous steps out of operations. Running a more efficient shop, he argues, will free up workers to innovate..."

Doesn't sound persuasive to me...Typical corporate language...Sorry.. even 'innovation' in this context is designed to do the same. Better, but still the same . What about doing something very different? Where did all these disruptive technologies come from?





six sigma disruptive technologies

Michael Porter's Business Competitiveness Index: US #1

Competitiveness Ranking or Who is Who.

From Strategy, Business Innovation, Brand Ecosystems, & Double Loop Marketing™

Michael Porter's Business Competitiveness Index: US #1

" The United States and Germany remain atop the latest Business Competitiveness Index, with China continuing to slip in the rankings while India ascends, according to a report released from Michael Porter's Institute for Strategy and Competitiveness.

The U.S. (picture up), ranked number one in four of the last six years, scored high on business environment, financial markets, and innovative capacity. Germany (picture down), number two, benefited from its orientation on exports, the unique competitive positions of its companies, and the quality of its legal and regulatory framework.

Rounding out the Top 10 were Finland, Switzerland, Denmark, Netherlands, Sweden, United Kingdom, Japan, and Hong Kong SAR. Hong Kong increased its ranking by seven, in part by strengthening management education, the efficacy of government boards, and local availability of process machinery, the ISC reported.

Other high-income nations increasing their ranking included Qatar (picture up), Norway, and Malta. Advanced economies on the decline included Cyprus, the Czech Republic, Taiwan, and France.

China (picture up), which has retreated in the rankings since 2002, fell nine spots to 64, according to the ISC. "This year's decline was driven especially by higher levels of corruption, weaker assessment of buyer sophistication, and concerns about labor relations," the study found. Also contributing were weak property rights, poor board governance, and low quality of management education. "Overall it is clear that euphoria about China is moderating as the realities of its competitiveness become more apparent," the report concludes.

India (picture up) moved up four rankings to 27, aided by improvements in its business environment and increasing levels of company sophistication.

Hmmmm. Porter's Index should be put next to a Global Standard of Living Index. Then we can learn which countries are the best for both employees and employers. But that might be too much to ask from Harvard. Maybe Yale could do that..."

Business Competitiveness Index

Strategy tricks: Pricing Judo

The never changing strategy clashes - cost of differentiation. The company always faces competition. The most common type is the one with similar (if not identical ) products and lower price. So, what do we do?



Below one article that elaborate what's been said in the previos posts.
The following article is reprint from Strategy, Innovation, Futures BusinessBlog by Naomi Moneypenny and ManyWorlds :

" ... leading to a spiraling commoditization of our industry and our business. So, smart guy, what do we do about that . . .?

Well, longer-term you need to do something about how easy it is for a competitor to basically just copy your product. But, as the economist John Maynard Keynes pointed out, in the long run, we're all dead! So in shorter-term you need to use the few levers you have -- in particular segmentation and pricing levers. "

So, there is a cheaper product. Your move? The simpliest and most safe to most in the execution is to lower price. But ... and this is a good one:

"Lowering your price will only cheapen your brand, you'll legitimatize your competition's product, you'll signal to your customers that you have been overcharging them in the past, and you'll reinforce the commoditization of your business."

If not the power price, then what?

"Instead, execute what Dean Jain calls a "sandwich strategy" -- what I'll call "pricing judo". First, add an additional "kicker" to your product to position it as clearly a more premium product than the competition's product, and raise the price! Then introduce a more economical version of your product and price it at or below the competition's product. This effectively sandwiches the competitor's product. The competitor may still gain some share, but the destructiveness to your margins should be blunted. "

and a final note:

"Meanwhile, get working on making your products and services impossible for the competition to copy in the first place!"

Well, isn't this a differentiation?

A good article.


business strategy

Industry news: Differentiation & Cost strategy

Two ways to compete: Differentiation or cost.

Two examples below how it is addressed on company's strategy level:

1. "With the new development center for drive systems and lift trucks we are headed for long-term strengthening of our capabilities in innovation and expertise in technology", announced Dr. Stefan Rinck, chairman of the management board of Linde Material Handling. "At the same time we aim to enlarge our de-velopment team and are on the lookout for well trained engineers", he continued.

visit here or here to read the pressrelease

2. Doosan Infracore is investing KRW300 billion (USD330 million) in a new construction equipment and forklift plant to meet its KRW10 trillion (USD11 billion) sales target by 2010.The South Korean manufacturer aims to be ranked among the world’s top forklift manufacturers by 2010. Corporately, Doosan wants to be in the world’s top five infrastructure support business players by 2015.

visit here to see the article.

In summary - one is looking to differentiate himself from the rest (for instance - by innovation and expertize), onother one is heading towards producing more and more and therefore keep the costs down

Strategy: Going from Global trends to Corporate Strategy

Strategy: Going from Global trends to Corporate Strategy


Will your business catch them before they catch it?

by Wendy M. Becker
and Vanessa M. Freeman

The full article is available at The McKinsey Quarterly

" ... Asked which three trends will be the most important ones for global business during the next five years, these executives chose two macroeconomic trends (the growing number of consumers in emerging economies and the shift of economic activity between and within regions) and a business trend (the greater ease of obtaining information and developing knowledge). But it is worth noting that executives think most of the ten trends we asked them to assess will be substantially more important for global business overall than for the profitability of their own companies..."

"...The executives polled in our survey agree that competition is becoming more intense: 85 percent of them describe the business environment of their companies as more competitive (45 percent) or much more competitive (40 percent) than it was five years ago. Opinions about specific competitive challenges—low-cost competitors, the improved capabilities of competitors in general, regulatory changes—vary by industry, appropriately enough. More than a third of the representatives of heavy industry, for example, single out low-cost rivals as the most important competitive factor, as opposed to just one in ten in financial services. And telecom executives are almost twice as likely as those from other industries to be concerned about innovative market entrants (Exhibit 2). ..."

Why so fast?


"...Innovation is high on the minds of executives around the world. In fact, they see it as the main reason the pace of change in the global business environment is accelerating so greatly (Exhibit. 4) ..."

Applicability to equipment business:

How to compete against - low cost producers? Differentiation. What if the ability to differentiate is limited? Get rid of costly products. Linde and Kion??? What will happen to Kion? Split into smaller pieces and sell to those who can afford? Who can afford? Those with either huge growing markets or cheap natural resources. Where is it? Asia? Russia?

Just a thought. LOL

strategy

Crazy Idea:Volunteers welcome

One mad idea: there are a lot of people who want to do a consultancy to the potential clients. Surprisingly – some of them for free (could be retired sales battle veterans). Some might want to try his skills in a different markets, for instance – switching from US to Europe and so forth. Markets are different, so it might be attractive for some to try his skills in a totally different (if not hostile) markets. The idea is that dealing with nearest located equipment dealer is a very tricky. He is ‘obliged’ to sell you his equipment. Dealing with an independent ‘volunteers’ – is kind of different story. Service is free , but the consultant can be directly paid by the person (company) that receives the consultancy on a ‘donation type’ basis. Based on the feedbacks, every consultant will get “points” or “grades” that indicates his level of expertise. This is a rough idea. And sales is just a part of story. Details inside.

forklift industry crazy idea

Case analysis #23: Internal analysis - Company's culture

3.2.2 Company culture

As a result of the existence of several hierarchy levels, the corporate culture in BC operations is very formal and includes multiple reporting, approval and confirmation processes. The relationship between sales and service tends to be tense, which results in several unstated rules. Lack of productivity is also a growing problem. The majority of personnel, especially those in the back office, are approaching retirement age, and therefore there is an increase in “survival” mentality, which makes the company very resistant to change. The workforce tends to rely on several layers of decision makers, which can and has caused bottlenecks to happen. The heavy reliance on upper management in everyday operations results in inefficient organization. In summary, the corporate culture is an example of a low cost mentality. The major weakness of the current corporate culture is a lack of independent decision makers. Another weakness is the “rigid” corporate culture.

The Alberta locations, in Calgary and Edmonton, were added at a later stage when ATRAC acquired a local company. The Calgary and Edmonton locations are smaller than the BC operation in Delta. In contrast to BC, Alberta has only two layers of management; therefore the structure is rather flat. The Alberta management vertical comprises only general manager and sales manager.

Every company location in BC and Alberta has a tendency towards either a cost or differentiation model.

The business model and culture in both provinces likely depends on the senior manager (cost managers in BC, differentiator in Alberta). The informal culture in Alberta is supported by the GM, who tends to be more inclined towards the differentiation model, while the more formal culture in BC locations is a result of direct supervision by the CEO and the VP. Locations with predominantly low cost structure (Delta, BC and Edmonton, Alberta) sell more Nissan equipment (LT segment). The Calgary location (differentiator) sells more Crowns (WE segment). This observation correlates with industry analysis that suggests that LT markets are best served by low cost companies, whereas the WE market prefers differentiators.
All the company’s locations have different corporate cultures. The strength of the current system is the presence of two culture models that support either cost or differentiation and can serve as culture “templates” for future spin-offs.

The first alternative requires creating two companies with contrasting cultures. The current BC culture is a good fit for the company with a low cost strategy, and can serve as a basis for cost strategy in both provinces. The already available personnel with differentiation skills could form the basis for a newly created company differentiator. The Alberta situation is even more straightforward. The Edmonton location, selling predominantly LT products, seems to have a cost mentality, and therefore can become the basis for a company with low cost strategy, while the Calgary location will create a basis for the company differentiator.

The second alternative requires an overall change of the entire company towards differentiation. This seems to be least worrisome for Alberta locations, while the BC branch will require considerable culture reshaping.

The main obstacle to implementation of either alternative is the lack of cooperation between different departments. Both alternatives require changing the mentality of the company. The process of changing mentality and the existing systems can be addressed by acquiring an organisational change consultant and inviting the direct support of the president. To facilitate tighter collaboration between sales and service, the company could implement performance bonuses based on successful cooperation. The existing cross-reporting system needs to be eliminated in order to facilitate initiative and self-confidence.

The second alternative seems to be less challenging and does not require personnel separation. Change management could be addressed by applying similar approaches within one company. The first alternative requires separation of personnel and the creation of two contrasting mentalities, which is a more complex task.

to be continued.

forklift industry case analysis culture

Case analysis #22: Internal analysis - Structure

3.2. Organizational infrastructure
3.2.1. Structure

ATRAC is a 30-year-old company. Over this time, the company has developed several layers of hierarchy. The current company structure is indicated in Figure 12, which follows. Darker colours in the diagram suggest more emphasis on differentiation, while lighter colours suggest an emphasis on cost strategy.

Figure 12: ATRAC’s company structure (Equipment Side)

As both the President and the VP reside in BC, the sales and service operations there seem to have more of a cost approach, regardless of product. The GM (a differentiator) lives in Alberta, and most likely for that reason, Alberta sales and service operations are more differentiated.
ATRAC is an example of a vertically structured company. The company’s BC location has five levels of management. The vertical management in BC is structured as follows: president; vice-president; general manager; general manager service; province managers; sales in field; and office personnel. Cross reporting exists between layers of management. For instance, general manager service (with significantly lower authority than GM) reports to both vice-president and general manager.

The strength of the current structure best supports the cost model. The structure separates the sales and service activities into independent cost centres. By separating the costs, the company is in a better position to track the costs. The weakness is that it doesn’t allow separating activities within cost or differentiation sector. Nor does the existing structure allow close coordination between sales and service, which seems to be a problem as differentiation suggests close coordination of sales and service.

Alternative 1: ATRAC’s strength in separating cost centres can be utilized in the first alternative (Figure 13). Both new companies in WE and LT will track costs within separate industry segments, which will make both companies more efficient.

The proposed alternative suggests direct control by the GM over all operations in WE, and control by the VP over all operations in LT markets in both provinces. Sales and service in both segments need to report to one manager, which will allow better synergy to achieve better differentiation or lowering costs. None of the current managers’ reputations will be compromised, and every manager will get the business in the area of his expertise. The president retains control over all business operations. The potential challenge is to find ways to make VP accept the unbundling of the operations. Partial ownership in the company operating in the WE segment could provide an initiative for the VP to agree to this option.
Figure 13: Company’s structure using first alternative.

Alternative 2: The second alternative doesn’t require any significant changes and can be implemented using the existing company’s structure. What is needed is higher authority for the GM and implementation of the reporting and supervising system to assuage potential fears of losing operational control.

to be continued

forklift industry case analysis

Strategy points by Brad Garlinghouse

Yahoo’s Brad Garlinghouse Makes His Power Move

"...We may have fallen down, but the race is a marathon and not a sprint. I don’t pretend that this will be easy. It will take courage, conviction, insight and tremendous commitment. I very much look forward to the challenge..."

Well, well said. The entire note is published here.

The environment around is changing, so the company needs to change too. Again and again - the same question. In brief, the point is - core vs. non-core business, what is core business, what is strategy in the short and the long term.

At least it worth to discuss, as what is 'core' business, what is 'non-core', if something has changed, should core business transform as well. 'No', "from good to great" people say. Is it...? Apple for instance would not agree. It changes like a chameleon.

As to the question itself - replace yahoo with any other name even from other industries, and it doesn't change the questions.

Industry news: STILL GmbH

Still introduces new hybrid and new electric forklift

read more here



My favorite toymaker - STILL GmbH.
With its new RX70.

Slick, refined, cute. Sometimes poshy.
All the definitions that you would not expect from the 'rough' forklift. I would compare STILL with APPLE. The same positionning. Not for everybody. Expensive. Trendy.

Interesting enough, their advertising is also very different from others. I guess their 'I love iPod type' people will be the best market to appeal. It does's have to be a driver. Everybody..even management can be 'I love iPod' type, and as the management demographcs is changing, this could work for STILL. And what is most attractive - there is no competition in this segment. And, frankly, first to start 'iPod' positionning - will get an advantage that is almost impossible to mimic.

Thumbs up for bringing an intelligence and the beauty into 'heavy duty' business.

STILL forklift

E-Marketing news:Web video: More than regurgitated cockroaches

Web video: More than regurgitated cockroaches

by Joseph Mann

Visual Strategist & Marketing Consultant

Northern New Jersey, United States

.... a web video component should be built into every company's demand creation strategy. Admittedly video production requires a more expensive investment than podcasting, but as the interest in popular (and low-budget) consumer-generated media demonstrates, it doesn't have to be Hollywood production-quality either....

... Combined with other channels, including face-to-face, this helps make a customer's entire experience with a company interactive and immersive. Creating that kind of connection can only help drive demand.....

to see the full text visit here

E-Marketing news:Email Creative: B2B is from Mars, B2C is from Venus

Email Creative: B2B is from Mars, B2C is from Venus by Joseph Mann
Visual Strategist & Marketing Consultant
Northern New Jersey, United States


The b2b aversion to a scrolling e-newsletter format in favor of an "at-a-glance" postcard layout further suggests this audience is too busy to be bothered having to scroll down a page (and what does this portend for b2b-targeted web sites?)

to see the full article visit here

Industry trends: Innovation, R&D and economies of scale

Emerging Trends

How to Turn Money Into Innovation
The Global Innovation 1,000 survey shows which companies are just throwing money into R&D and which ones can boast about innovation
by Jessie Scanlon

The trends include an increase in R&D funding in countries other than the U.S., Japan, and European nations—notably in India and China. While a few years ago, companies were offshoring for cost reasons, the shift is now driven by strategy and the need to build out global innovation networks and move closer to fast-growing foreign markets.

Another trend: While total R&D spending is on the rise, R&D as a percentage of overall sales is falling. One reason for this is size; companies are growing and larger ones have economies of scale. Another factor is the shift of R&D sites to low-cost countries.

to read full article click here

trend
innovation

case analysis #21: Internal analysis - Feasibility

3.1.1 Feasibility:

Alternative 1: By following the first alternative, the low-cost strategy in the LT segment seems to be a perfect match for both the CEO’s and VP’s previous experience and capabilities. ATRAC doesn’t need anything that is not already available to run a low-cost LT operation. The potential challenge lies in differentiation in the WE segment. The person that can best run the WE differentiation is the GM, who possesses less authority. To fully execute the first alternative, the company needs first to separate the company into two independent operations. The VP could run the LT business, and the GM could be in charge of the WE company. In this case, the authority levels of both VP and GM need to be equal. In this system, both the VP and the GM (who could become VP2) will report directly to President.

An example of current “pure play” competitors such as Johnston (Raymond), Williams Machinery, and Mason Lift (Toyota) (see footnote), provides solid evidence that independently run operations can be more efficient. Crown and Nissan, in turn, will be likely to support the separation, as in this case they will not have similar and overlapping products within one dealership.

Alternative 2: The second alternative doesn’t require restructuring and would seem to be less favoured by the President and the VP, as it suggests moving towards differentiation, which is outside the President’s and the VP’s expertise. The differentiation approach suggests that more authority be given to the GM, which seems to be problematic. Differentiation in the LT division suggests dumping “weak” brands, which is unlikely to be accepted by the VP as it threatens his reputation. Crown Equipment will likely support this initiative, however, as it is consistent with Crown’s differentiation strategy. Nissan will likely be indifferent, as a new alternative doesn’t change things for Nissan. The performance for a new fully differentiated company is very hard to predict, and there is no current example in BC or Alberta of a company that operates using this differentiation strategy for different brands in different segments.

In summary, the President and the VP of the company support a low cost model, while the GM is a supporter of differentiation. From a management preference point of view, the company currently has much strength on the cost and differentiation sides. All three managers have reasons to support the first alternative. The second alternative could be supported by the President and the GM, while the VP is likely to object. Shared ownership in new spin-off companies could provide incentive for management to change things.

---

(footnote) P.S. Toyota owns the Raymond brand; however, it prefers to run both brands separately.

feasibility alternatives forklift industry analysis

Case analysis #20: Management preferences

3.1 Management preferences

At least one of the proposed alternatives needs to be supported by a company’s decision-makers.

ATRAC is a privately owned company. The majority of the company belongs to an investment fund (XLZ Group). The President and Vice President both are minority shareholders. The senior management level in the company consists of the president, vice-president (VP) and general manager (GM). The President and VP reside in BC, while the GM resides in Alberta.

The president and CEO, Art W, has a financial background. He joined the company as an accountant in the mid-1980s, and after that made a career to the top working in accounting, predominantly in the storage division. The president is responsible for the financial aspects of the company’s operation. As his previous experience was acquired within accounting and finance, Art prefers to operate using “hard” performance metrics, and is one of the major company “drivers” towards a low cost business model. Art’s previous experience in accounting is likely to affect his decision criteria in favour of a low cost strategy with lower uncertainty, higher predictability, and conservative financing. The second alternative, which suggests the company’s turn around into differentiation, is less likely to be accepted based on Art’s previous experience. The first alternative might get the CEO’s approval, as it suggests applying the cost strategy at least in one segment (LT).

The vice-president (VP), Gary M, has an extensive experience in the equipment industry “from beneath” with emphasis on the service aspect. In the mid-1980s, Gary ran a company that sold and serviced “no-name” lift truck brands. In the 1980s, ATRAC acquired Gary’s company and Gary joined ATRAC. After his arrival, the company moved towards product diversification through the acquisition of different product lines. Gary was involved with adding the Nissan and Heli Forklift brands to the company’s previously existing Crown brand. The VP supports current multiple product lines, as he believes it will minimize the risk during an economic downturn. Currently, the vice president is responsible for product selection and all service activities. The vice president’s belief is that the job can be done at low cost, and is unlikely likely to support any differentiation strategy. Out of the two proposed alternatives, the VP is more likely to support the first alternative, as it doesn’t require dropping other brands and differentiation.

The General Manager (GM), Rick P, brings approximately fifteen years of experience, with excellent industry expertise and knowledge. His major responsibility is managing sales. The GM has experience in building a brand image. The success of the Crown brand in BC and Alberta proves that he is indeed capable of creating differentiation. The GM has strong support from Crown, which gives him a certain authority in dealing with both the President and VP of the company. The general manager is likely to support a differentiation strategy; however, his authority level is not sufficient to authorize strategy changes. The GM is likely to support both alternatives, as they both require differentiation models.

The current independent and autonomous position of the GM, his residence in Alberta, and his support from Crown Equipment could imply that there are certain concerns by the President and VP about retaining control over the company’s operations. The current company’s structure, with cross-reporting, tight control structure and multiple managerial layers seems to confirm this statement.

to be continued


management preferences forklift industry case analysis

Industry news: Bloomberg comments on KION sell

Kion plans to sell more than 125,000 forklifts to ports and warehouses this year as U.S. and European demand for low-cost Asian goods boosts world trade by an estimated 7 percent.

Kion had sales of 3.6 billion euros last year and is the world's second-largest forklift maker with a 19 percent market share, Linde spokesman Uwe Wolfinger said. Toyota Motor Corp. ranks No. 1, with a 21 percent share, he said.

Frankfurt-based Goldman spokesman Christian Kroos said jobs aren't an issue and that the buyers plan to pursue an expansion strategy at Kion, targeting markets in the U.S. and Asia.
`Adding People'
``It's about hiring, adding people,'' Kroos said. ``There are no plans to move production out of Europe.'' A share sale is likely in four-to-six years, he said.

Buyout firms use their own funds and debt secured on the companies they acquire to pay for takeovers. They typically seek to expand companies or improve their performance before selling them within five years to other funds or investors.

To read an original article visit KKR, Goldman Buy Linde Forklifts Unit for EU4 Billion (Update7)

To contact the reporters on this story: Edward Evans in London at eevans3@bloomberg.net ; Sophie Kernon in London at skernon@bloomberg.net .

Industry news: an end of ophranage (KION)

---

Linde gets €4bn for forklift unit



Business

07 Nov 2006



Kohlberg Kravis Roberts and Goldman Sachs’s private equity unit have agreed to buy the Kion forklift unit of Linde Group for €4bn (2.7bn). The purchase price includes €400m in pension commitments, lease obligations and other liabilities. KKR and... read more... Tech Tags: Business newspaper Business News

AY: well, let me guess ... it is good for Linde, as the burden has gone. (MHE is quite a different from the core (engineering) business), plus some cash that is needed for BOC aquisition. It is good for KION as it can't be worse as being an ophran. Kohlberg Kravis Roberts and Goldman Sachs’s will IPO Kion but most likely as a separate units, as it will bring more money first, and second the money for the separate divisions within KION are significantly more effordable.

STILL, Linde and OM forklifts will be eventually sold to other investors, likely from ASIA. Separately.

Any losers? - well..... not at the moment.

kion group

Pricing, Ago and Emotions

"Neuromarketing and Pricing. Why do people sometimes set prices that are too high, and then stubbornly stick with them despite evidence from the marketplace that the price is indeed wrong?"

"Business pricing decisions are usually rational, simply because they are often hammered out by groups of managers who use market data to come up with price points. Still, it’s all too easy for business leaders to “fall in love” with their product and assign a higher value to it than justified. "

Original post is Pricing, Ego, and Emotion

AY: Well said... this is another point against those who can't see that the most of the material handling equipment is a commodity and most of the benefits that are offered to the market is in most cases ... well... exaggerated. (I personally love an example - the one that is called System Active Stability by one of the manufacturers... )

By the way , the best way to sell commodity is direct sell, whcih is relatively to the equipment side is direct factory sell using ecommerce and online. How much does it take to sell for instance class 1,4 or 5 in the range 3.000 - 5.000 lbs. Can't be easier.

Material Handling Equipment Blog disclosure policy:

Disclosure policy – it is a good idea to have bloggers to have this policy be published on their blogs. This is not mandatory (as nothing can be mandatory to the bloggers); however this will establish a realistic expectations regarding the posts. Of course, some ethical concerns still remain; but this is on the individual level and tied to the degree of the reputation the blogger wants to associated with.

Material Handling Equipment Blog disclosure policy:


This policy is valid from 06 November 2006
This blog is a personal blog written and edited by me. For questions about this blog, please contact ayamshchykov@gmail.com
This blog accepts forms of cash advertising, sponsorship, paid insertions or other forms of compensation.
The compensation received will never influence the content, topics or posts made in this blog. All advertising is in the form of advertisements generated by a third party ad network. Those advertisements will be identified as paid advertisements.
The owner(s) of this blog is compensated to provide opinion on products, services, websites and various other topics. Even though the owner(s) of this blog receives compensation for our posts or advertisements, we always give our honest opinions, findings, beliefs, or experiences on those topics or products. The views and opinions expressed on this blog are purely the bloggers' own. Any product claim, statistic, quote or other representation about a product or service should be verified with the manufacturer, provider or party in question.
This blog does not contain any content which might present a conflict of interest.

To get your own policy, go to http://www.disclosurepolicy.org/

Technology reviews: Tomorrow's cars

Hydrogen...? Fuel Cell..? Hybrids..? Solar...? Redisigned engines..? Biofuel...?
See Technology Review

How to make equipment business a bit more funlike

The guide to the web.2o directory

very cool look and quite a lot of content.

Another one is web.2.

Case analysis: Internal Analysis

3. Internal analysis:

The purpose of this section is to examine the feasibility of proposed alternatives in terms of the internal capabilities of ATRAC to implement the strategies. The focus will now be directed inward at the characteristics of ATRAC. The chapter will evaluate each of the available strategic alternatives against several criteria, such as managerial preferences, organizational infrastructure (systems, structures, organizational culture) and the company’s resources (operational, human and financial).

The strengths of ATRAC will be assessed to see how they support alternatives. The gaps between required capabilities and what currently exists will be identified and the analysis will show whether these gaps can be filled to allow one or both alternatives to be achieved. The strategic alternatives will also not only be evaluated based on their feasibility, but also on the ability of the company to acquire additional capabilities, should they be required.

As previously stated in the market analysis, ATRAC has some of the resources and core competences required to compete in the industry. The company has a reputation, sufficient history and market expertise. Over the years, the company has built up beliefs about its competences, the capabilities of its employees, and about the right way to handle strategic issues. Two alternative strategies will be considered in regard to management preferences to find out whether the strategies are likely to be implemented.

case internal analysis forklift industry

Industry news: Jungheinrich CEO leaves company

---

Ex-Chef in bester Gesellschaft



Sueddeutsche Zeitung Deutschland-Ausgabe

31 Oct 2006



Wenn in Chefetagen dicke Luft herrscht, ist manchmal selbst fr Hflichkeiten kein Platz mehr. Beim Hamburger Gabelstapler-Hersteller Jungheinrich muss sie am Montag sehr dick gewesen sein. Nicht mal eine formwahrende Floskel enthielt die knappe... read more...

Tech Tags: Sueddeutsche Zeitung Deutschland-Ausgabe newspaper Wirtschaft

Jungheinrich CEO Dr Cletus von Pichler, who moved the German forklift manufacturer towards globalisation, left the company on October 31.

Von Pichler, who was also president and chairman of the board of management, left Jungheinrich AG of Hamburg, Germany, by “mutual consent”, a Jungheinrich statement said. No further details were provided. (????. Usually it is not a good sign. AY)

“He has completely reorganised the sales force [to focus on the Jungheinrich brand]. He also reorganised the structure of the product plants.

“Dr von Pichler strongly emphasised globalisation of the company and strengthened overseas sales activities significantly,” Piazza said.

The group’s supervisory board has appointed Wolfgang Kiel as a temporary board of management chairman from November 1. Kiel has been with Jungheinrich for 30 years.

read more about Jungheinrich CEO leaves company

Brand proliferation

Brand Proliferation - From Borat’s Perspective’

This is simply hysterical. Just replace cheese with something different.