The Manager's View provides solutions and advice based on management and marketing principles that are used by GWR Research (www.gwrresearch.com). Many of the posts are related to or are taken from the author's books "The Manager's Guide to Building a Successful Business" and "Developing Successful Marketing Strategies". More information on the books is available at Amazon.com, BarnesandNoble.com or Businessexpertpress.com
Thoughts on America’s Ability to Innovate and Compete
" The only limit to our realization of tomorrow will be our doubts of today. Let us move forward with strong and active faith." Franklin Delano Roosevelt
I have heard a lot of discussion lately about the
U.S. losing its competitive edge and falling behind on its ability to stimulate
the development of game changing innovations.
I think some look at rapid growth in new
technological developments from China, India and South Korea and are concerned
that economic power will shift to those countries at the expense of U.S.
Some may look at the ranking of education systems and
feel that without improvements the U.S. will fall woefully behind other
industrialized nations in the ability to produce a workforce for the new
Still others believe that management focus on
short-term profit prevents companies from investing in innovations for the long
Clearly, there is truth in all of the above points of
view and there is reason to be concerned. But I was once told that half the
solution to a problem is recognizing that it exists. That after identifying and
defining a problem developing a solution is just a matter of focus by people
bent on solving the problem. So I believe we will face and overcome challenges
as we identify them.
As far as the U.S. ability to innovate and compete, I
happen to be an American Optimist. I believe that the U.S. has a special set of
catalysts that spurs innovation and competiveness. These catalysts include:
1)The opportunity for individuals to create wealth that
they can keep. This is under
pressure at times as national spending requires heavier taxation but at present
there is still a strong incentive for entrepreneurs to create new businesses.
2)The U.S. system of governance. U.S. citizens love their freedom and they have an
enormous amount of national pride. They understand that the rule of law should
work for all citizens. This protection of individual freedoms is a powerful
draw to people from all over the world who wait for a visa or green card or are
willing to risk their lives to come here. After arriving they search for ways
to stay and become U.S. citizens.
Because our citizens have been successful in creating personal wealth and
living in a nation that is ruled by law, the U.S. has attracted immigrants from
all over the world to power our engines of ingenuity. These immigrants bring an
understanding of how to do business in the countries of their origin.
I personally have friends that are first or second
generation Americans who have created personal fortunes.
One came from China and started as a short order cook
in San Francisco. After earning his masters degree he and his wife started a
Chinese newspaper that has grown to a publishing group serving the Chinese
communities in most major U.S. cities. He sponsors a lot of community
activities and each time he speaks to a crowd he is passionate about his love
for this country. Interestingly, he has strong connections in both Taiwan and
the PRC and has helped American and Chinese businesses develop.
Another friend is second generation Japanese. His family
was doing well before WWII but lost everything when they were interred. After
the war this family of immigrants fought hard to recreate their wealth. They
did and today have a very healthy multi establishment restaurant business. They
are very proud to be Americans. They also work closely with American and
Japanese companies in developing new business programs.
Another Chinese friend started a plastic resin
company after receiving his PhD in nuclear physics. He has operations all over
the globe and is a very strong believer in the American Democracy.
I am a partner in a medical consulting group that
includes a physician that hails from Columbia. He is laying the groundwork to open
South American countries to our cancer care consulting practice.
Finally, I am involved in a project that will involve
major medical institutions and universities in developing new medical
technologies. Key players in the formation of this organization are first
Over the past two and a quarter centuries we have had
significant economic crises that threatened the strength of our nation. We have
had major challenges to our global leadership role from nations that had the
advantage of newer manufacturing infrastructure and lower labor costs. In every
instance the U.S. found a way to compete and maintain a leadership in
innovation and international competiveness. I would have to say my own personal
experiences have strengthened my faith in the U.S. ability to continually innovate
I think we, as a nation, have challenges but I firmly believe that
we have a system that is resilient and thrives on a continual renewal driven by
the ability to create personal wealth, a rule of law and a population that is
diverse and continually renewing its vitality.
When introducing a new product or service to the market a
key, and often critical, consideration is the price for this offering. I have
seen folks simply take the cost of production and use a percent mark up as a
pricing model. This is the simplest model and it provides a good example for
the need to consider other pricing model options.
Here are 10 things to consider before setting a price for
your product or service: ·Mark up
Based on Cost Vs Retail. In the opening paragraph I gave the example of a
model being used that marked up a product by a percent over the cost. The cost
used here is generally direct cost or labor and materials. If someone wants a
30% of the asking price to be the mark up, then using 30% of cost won’t provide the
desired outcome. Simply put, it is the wrong math. If something costs $1 to
make and it is marked up by 30% for a selling price of $1.30 then the profit of
based on the asking price is 23.07%. To arrive at a 30% mark up based on the
selling price it is…
THE IMPORTANCE OF PRODUCT PRICING By
Gary Randazzo The impact of pricing
strategies can be critical for the success of new product launches, a company’s
image and ultimately a company’s short and long-term success. REACTING TO THE COMPETITION I have worked in
several industries and found that pricing is often overlooked as a key
marketing tool. In many instances pricing is driven by the sales department and
is a reaction to the competition. This reaction assumes the competition knows
the market better and has a superior marketing strategy. When reacting to
the competition it is important to understand that you are being drawn into a
game whereby you play by the competitor’s rules. You are playing their game and
changing your strategy. Your hope here is that you can play the game better or
that the competitors can’t play their own game very well. I am reminded of
a time where my company was vying for the business of a key customer. The
customer was a shrewd negotiator. We understood the valu…
TO CLARIFY YOUR MARKETING STRATEGY, START CLASSIFYING YOUR CUSTOMERS
From Texas CEO Magazine, December 2012
By Gary Randazzo
Every business, at some point, will review its marketing strategy. The cause for a strategy review can come from a difficult business environment, a windfall in profits, a change in technology or a change in customer preferences. When a marketing strategy review is in order it can be challenging to decide where to start.
Classifying customers, based on the amount of their spending, can be a good place to begin. Spending used as a metric can help the analyst understand which customers provide the biggest impact:
1) Key customers representing the largest percentage of sales and profit
2) Customers with the potential to provide greater sales (under-potential)
3) Customers that do little or no business with the organization but use products similar to those offered by the organization (nonusers)
This simple classification may…