September 3, 2009

7) Nintendo

nintendo-logo

wēi  danger

The computer games industry has for many years been a race to better service the needs of the ‘hardcore gamer’, enhanced processor speeds are often cited as the means to this.  But, the investment required to stay at the cutting edge of performance has been huge and has been the downfall of many, notably Sega (now a game developer versus console manufacturer).

jī opportunity

Nintendo, instead of fighting this battle for the ‘hardcore gamer’ has spent much of its energies developing offers for the ‘non-consumer’.  It spends much of its effort attempting to grow the ‘size of the pie’ rather than its own slice. For example, Nintendo has developed titles targeted at adults’ health (Wii Fit on the Wii) and improving adults’ cognitive capabilities (Brain Age on the DS).  Doctors have even been known to recommend the latter.  And Nintendo is successfully growing the pie – “While the video game industry grew by $150 million (12 percent) year-on-year, Nintendo’s total sales grew by $300 million in January, offsetting declines on other platforms.”

How about…

  • Focusing on growing your market rather than solely your share
  • Converting non-consumers rather than fighting for current consumers
August 24, 2009

2) American Idol

american-idol-logo

wēi  danger

The music industry has been under siege  - new electronic distribution methods, piracy and the increasing power of the blockbuster performers has made the traditional music labels less and less appealing.

jī  opportunity

The Pop Idol / American Idol model has harnessed technology for opportunity.  The innovative format has been highly successful  -  singers audition and then perform in a weekly program and viewers then vote for their favourite performer.  The winner is awarded a music deal.  Amazingly it turns the A&R (Artists and Repertoire) talent finding cost into a revenue source as viewers pay to tell the program owners who they like (often by SMS).  In addition, this whole process de-risks taking talent to market (because viewers have already made clear who they like) and enables the talent to be acquired at low cost (because they agree terms in advance).

How about…

  • turning costs into revenue sources
  • harnessing the wisdom of the crowd to help you prioritise your options