Wednesday, December 06, 2006

A lesson for every entrepreneur and innovator

Yahoo is getting their clocked cleaned by Google.

The lesson for every entrepreneur and innovator is to figure out what business you are in and what drives your economic engine, then focus, focus, focus.

Geoffrey Moore in Crossing the Chasm nailed it when he observed that lack of focus is not a problem of the head, but of the emotions.
First, let us understand that [lack of focus] is a failure of will, not of understanding. That is, it is not that these leaders need to learn about niche marketing. MBA marketing curricula of the past 25 years have been adamant about the need to segment markets and the advantages gained thereby. No one, therefore, can or does plead ignorance. Instead, the claim is made that, although niche strategy is generally best, we do not have time—or we cannot afford—to implement it now. This is a ruse, of course, the true answer being much simpler: We do not have, nor are we willing to adopt, any discipline that would ever require us to stop pursuing any sale at any time for any reason. We are, in other words, not a market-driven company; we are a sales-driven company.

2 comments:

Evan said...

Sounds like the hedgehog concept.

Anonymous said...

Moore is right on course, here. However, my experience is that most sales-driven companies are more truthfully pushed by either finance or technical leadership, whose intrinsic character is concerned about everything (anything?) but attending to the market.