First, you serve an under served need. When all needs are fulfilled, then you create a new need. When a new need is created, then you create choices. When there are too many choices, then it will go into a price war. When a price war starts, you bundle value-added services. When VAS becomes a standard package, then it's time to create a new product that again serves an under served need.
You can almost tell the positioning of a brand by identifying how much time and resources it is spending on one area of the cycle. An ideal business situation is of course, one that has balance throughout the whole cycle. It doesn't promise you success, but at least you know you're still relevant to the people.
There. No rocket science.
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