Confusion as a Defensive Strategy
Sometimes the best way to protect your brand is to confuse people. An Illinois Election A recent election in Illinois provides a good example of the confusion strategy. In 2016, Michael Madigan, a powerful state politician, faced a primary challenge from Jason Gonzales in a district that is 73% Hispanic. Madigan, concerned about the threat, arranged for […]
IAG’s Brilliant Defense
When it comes to building a strong, enduring business, it is impossible to over-emphasize defensive strategy. You have to protect your business. Airline giant IAG’s move to acquire Norwegian is a perfect example of defensive strategy at work. Defensive Strategy One of the few certainties in the world is that if you have a strong, […]
Defensive Strategy, Super Bowl
The Super Bowl Detergent Battle
On Sunday, the Patriots and Falcons will take to the field in Super Bowl LI. Each team will be looking to pick up yardage and put points on the board in hope of emerging the victor. It should be a terrific battle. The football game isn’t the only competition we will see. This year’s Super […]
AB InBev Fights Back
Great companies defend their turf. When a new entrant shows up, they respond to the threat. They innovate and invest to hold their market share. This is what firms should do. You can’t relax and watch as your market share falls year after year. With each customer loss, the business weakens. Profits may hold up […]
A Branding Problem for ISIS Pharmaceuticals
Yesterday, ISIS Pharmaceuticals announced that it was considering changing its name in light of the attack on Paris. Wade Walke, vice-president for corporate communications, told CNNMoney, “Even though people know we’re not associated with the terrorist group, the name itself has so many negative connotations. It’s obviously not getting better over time.” My reaction: what […]
Pharmaceutical Pricing, Markets and Ebola
People love to attack pharmaceutical companies for setting high prices. Dr. Sharon Levine, for example, an executive from Kaiser, recently criticized the $84,000 price of Solvadi, Gilead’s new hepatitis C drug, noting, “It’s an outrageous price.” The problem is that the reason firms invest in developing new drugs is that there is an opportunity to set a […]
Defending Air France
Air France, one of the world’s great airlines, is under attack. The recent two-week pilot strike was a financial and customer service disaster. The bigger problem is that Air France appears to be unable to defend its business; new competitors are stealing customers at an alarming pace. The financial results for Air France – KLM […]
Brands in the News, Defensive Strategy
Apple’s Competitive Challenge
Last week Apple rolled out a trio of new product platforms: iPhones with larger screens, a watch and a payment system. The new phones are not dramatic innovations; they build on existing technology and will help Apple keep pace with competitive offerings. The watch and payment systems are bigger innovations. They are both trying to change the rules. […]
Physicians, Insurance Companies and Incentives
Incentives motivate everyone. When someone rewards us for something, we tend to do more of it. Carrots really work. Insurance giant WellPoint is taking the idea to heart. According to an article in today’s Wall Street Journal, the company will soon start offering oncologists $350 a month for every patient on one of the insurer’s recommended […]
The Great Breakfast Battle
Every once in a while you see two strong brands crash into each other in a desperate struggle for market share and customer loyalty. These Great Competitive Battles are always fascinating to watch and you can usually get some pretty good deals as the fight goes on. In the United States, April will feature a GCB between […]
The Remarkable Chobani – Whole Foods Fight
You don’t see manufacturers and retailers attack each other very often. Everyone has an interest in keeping disputes hidden from view. Today, Chobani and Whole Foods are fighting a nasty battle. Here is the story. Whole Foods announced yesterday that it was kicking Chobani out of its stores. The reason, according to an article in the […]
Reality Comes to U.S. Colleges
One of the reasons I find it challenging to teach marketing strategy is that the theories don’t always seem to work in real life. I teach that companies need to build profits, for example, but Amazon contradicts the point. Snapchat doesn’t even have revenue to speak of and is apparently worth billions. I tell students that […]