Independent Thinking » Strategy

3 Strategies to Excel in a Tough Market

Daria Steigman — Thu, 12 Jan 2012 06:01:39 +0000

How do you manage uncertainty when, by definition, it involves wrestling with stuff that’s difficult–and sometimes impossible–to predict?

It all starts with understanding (and then leveraging) your competitive advantages, says Keith Bickel, author of Mastering Uncertainty. The book posits three different business models to optimize your competitive edge.

Are you a pioneer, a pouncer, or a hedger?

Read about the three strategies in my book review.

Photo by Steve Snodgrass (Flickr).

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Bigotry is Not a Business Strategy

Daria Steigman — Tue, 13 Dec 2011 20:08:07 +0000

You’ve probably heard that Lowe’s pulled its advertising from reality TV show All-American Muslim. The home improvement company says it made a business decision based on its assertion that the show is a ”lightning rod” for “strong political and societal views.”

The show isn’t the problem.

Lowe’s made a reactive decision based on a fringe Florida group’s disapproval of the company’s initial decision to advertise on the TV show. Now, somehow, Lowe’s is surprised by the backlash.

Like most business owners, I choose to work with people and companies I like. And I’m conscious of my brand. And my reputation. I also “own” my choices and my decisions.

So far, Lowe’s has done neither.

Bigotry is not a business strategy. Unless, that is, your strategy is negative PR, a firestorm of media attention, and a lot of customers who won’t be back anytime soon.

Photo by Niloy (Flickr).

Why Every Deal Is Not a Bargain

Daria Steigman — Mon, 12 Dec 2011 16:45:26 +0000

What’s up with the “2 for 1″ sales trend these days?

My thinking on pricing, rates, and value is pretty clear. And I don’t understand why some people think every deal is a bargain:

“Buy 1, get 1 free” suggests the item is overpriced.
“Buy 1, get the second free (just pay separate shipping)” suggests the product is so cheap that all the profit is built into the shipping cost.
“Used to be [a lot more], but really great price today” tells me the product is pretty close to worthless. And no one’s buying it and we desperately want to get rid of our inventory.

I’m all fine with sales–everyone knows that’s a temporary drop in your profit margin. (And “2 for 1,” used judiciously, can serve that aim.) But when your business model is all about discounting, then I start to get worried.

What about you? Seen any deals lately that aren’t bargains?

Photo by Anthony Easton (Flickr).

Can a Personal Brand Coexist Within a Corporate Ecosystem?

Daria Steigman — Tue, 09 Aug 2011 09:04:49 +0000

Love it, hate it, or deny it exists, personal branding is a hot topic. And it’s going to be THE topic today for #sm122, a weekly tweet chat around the business of social media.

Join me at 12 noon EST as I host a conversation around personal branding. We’ll explore:

1. Personal branding — good idea or bad idea?

2. Can a personal brand coexist within a corporate ecosystem? Can your stars be stars and keep your brand intact?

3. Is it okay for companies to ban their employees from blogging?

4. Should companies have a succession plan around star employees?

Before diving in, I recommend reading Jonny Bentwood’s excellent post on Forrester’s decision last year to ban its staff from having personal blogs.

Looking forward to the conversation. And, as always, feel free to leave your two cents in the comments below.

UPDATE: The transcript of the tweet chat is posted here.

Photo by J.D. Hancock (Flickr).

Going Fireworks

Daria Steigman — Thu, 30 Jun 2011 10:21:49 +0000

Some people go fishing–I’m going fireworks.

I’m off for a few days of much-needed downtime. I’ll be back with new posts right after the Fourth of July holiday weekend.

Meanwhile, in celebration of three years of blogging (The Independent Thinking Blog turned 3 this month), here are three posts from the early archives you might want to check out:

See you back here on Tuesday.

Photo by therealbrute (Flickr).

Everywhere Is Not a Strategy

Daria Steigman — Fri, 06 May 2011 13:59:53 +0000

I once heard a guy with a software product he was trying to sell tell a gathering of entrepreneurs that his audience was “anyone who has a computer.” Huh?

Everyone is not a strategy. It’s a bad business idea in desperate need of a plan.

Everywhere isn’t a strategy either. Ask a successful global company, and their everywhere is segmented, targeted, planned out–and not really everywhere. Ask savvy small business owners, and they can define their audience, their market, their strategy.

Last week’s #profschat conversation was around Facebook pages and marketing. I noted that my small business doesn’t have a Facebook page:

I can set one up, but need a raison d’etre for doing so first. (Waiting for the right reason.)

Jason Gertzen then replied:

Good point. Meet customers/audience where they are. No need to be on Facebook just to say you have a page.

And added:

Wish more would take your smart approach. First, plan your strategy. Then, pursue your social outreach where it makes sense.

Is your business everywhere, or just everywhere you need to be today?

Photo by Hillary Boles (Flickr).

The Difference Between Failing and Failure

Daria Steigman — Mon, 18 Apr 2011 10:07:09 +0000

Many years ago, I set up a joint venture involving the Russian real estate market.

My partner Philip Bay had a successful business in Russia and Bulgaria catering primarily to foreign companies looking to expand into these emerging markets and foreign governments looking for housing and/or office space. He saw European companies buying, selling, owning, and managing properties across Moscow and thought that U.S. developers needed to hone their competitive edge in this new frontier.

Hence the genesis of our monthly subscription newsletter. Bay would guide content; I would be editor-in-chief responsible for writing, production, and distribution.

Moscow Property Market lasted for two (very-well-received) issues. Then a Russian constitutional crisis set back investment–and effectively shut us down.

Sometimes you can do everything right and still fail.

But it wasn’t a failure.

The difference between failing and failure is what you do next.

Photo by Holger Zscheyge (Flickr).

The Problem with Soundproof Rooms

Daria Steigman — Thu, 07 Apr 2011 18:06:32 +0000

Soundproof rooms can be great if you’re practicing the piano or planning a coup. And while they provide you with a distraction-free space to work, if you’re not careful you might just shut out conversations you should be heeding.

In the early 1990s, U.S. agribusiness companies regularly brushed off consumer safety concerns about genetically modified organisms (GMOs). I tracked agricultural policy for several clients, so I was in that room a lot. When safety questions came up, they seemed to think that saying GMOs were safe was enough. Who could possible disagree? They were completely surprised when the European Union, prodded by consumers, started asking its own questions.

See, they had been hanging out in a soundproof room. Are you?

Photo by Becky Snyder (Flickr).

Are You Long-Term Greedy?

Daria Steigman — Wed, 09 Mar 2011 10:15:57 +0000

My friend Deborah Brody wrote a terrific post about business planning. It’s not a sexy topic–but can anyone say they don’t need a Plan B for when things go wrong?

Most businesses, if they plan at all, focus on the “how are we going to handle the whole disruption-to-our-business” question. Few take that critical next step and ask: How are we going to help our clients, customers, and/or vendors fill the gaps?

Sure, a problem with my business is about me. But it’s also about the impact on everyone else who depends on me.

So Who Are You Going To Call?

Hopefully, you’ve put in place a Plan B to help your customers solve their problem while you’re busy solving your own. Because there’s nothing sadder to me than a business that is unable or unwilling to make a referral. It suggests that they either:

don’t trust their clients not to like the other guy better, or
think no one else can measure up.

People lose business every day. If someone likes your competitor better, learn from that and adjust your business (if necessary) accordingly. Chances are, for every one person who finds a new home, nine others will be grateful that you found them temporary shelter during your crisis. If you think no one else measures up–well, get over yourself (and/or warn your customers that this might not be the best solution, but that you wanted them to have a solution until you’re back up and running.)

In The New Small, Phil Simon talks about how smart business owners will turn down (the wrong) work rather than take on a project they know will fail. I do this a lot. You’ve probably done this too. He calls it long-term greedy (a phrase coined by someone at Goldman Sachs to refer to focusing on long-term gains rather than worrying about short-term losses). The alternative, I guess, is short-term stupid. Which is how I’d describe a business so focused on itself that it isn’t helping its clients and customers.

Are you long-term greedy?

Photo by Evelyn Giggles (Flickr).

Why Marketers Are Getting the Axe

Daria Steigman — Thu, 22 Jul 2010 13:26:34 +0000

This recession has not been kind to marketers and other communications pros. Especially at the senior level.

Frankly, I’m not surprised.

Just look at how we typically refer to ourselves. Marketer. Public Affairs Specialist. Writer. Editor. Media Relations Manager. Videographer. It’s all task-based.

IABC has the word “business” in it, but our titles rarely do. And too often we haven’t made the case that storytelling is key to selling widgets (or sneakers, politicians, goodwill, or support for your cause). That communications is a core business function, as necessary to organizational success as product designers and the sales team.

We talk about transparency and authenticity. Our bosses care about sales, opportunity costs, and ROI.

I’ve heard a lot of hand wringing about how communicators don’t have a seat at the table. Yada, Yada, Yada. Feel better?

Now, what are we going to do about it?

The comments are yours.

Note: This post originally appeared on IABC’s Communication World blog.

Photo by Randy Son of Robert (Flickr).