sensible tech supply and demand

what do samsung and barnes&noble have in “common” today?  well b&n seems poised to lose out a golden opportunity create a market for nook. they wont have the nook in stores for sales or demos because … get this … excess demand for its devices!  hmmm …

on the other hand, samsung announced that is has beat its 2009 handset demand handsomly (pun intended).  50M units by end of nov 09 vs. 10M units by end of nov 08.  wow ….

so, what’s with the difference between ‘hmmm…’ and ‘wow…’ … and whats it got to do with the economics of tech supply and demand?

3 obvious ideas:

a. plan for success … blazing success: whether you are an old hand at tech a-la samsung, or a newbie like b&n, plan for success.  if you truly believe in your product, plan to have a product on hand when that elusive much-anticipated customer comes calling.  especially during holiday shopping.  there is no charm in gifting someone a nook gift-card.  get the real deal.  or be ready to see your competition kindle a hotter fire this year!

b. strategy focused operations: got to get your operations right and have it aligned with your strategy.  strategy without operations is like a hot air balloon without the hot air.  operations might be the plain ‘old boring stuff.  but thats what makes organizations run … or soar.  if you cant make a holiday delivery during the holiday season, its time to re-examine your operations.  what are the kinds of cascading management decisions that led you to this mess?  some over-compensation for the bull-whip effect?  cludgy inventory holding costs that held a supplier back?  a vendor management policy that turns up with unintended consequences?  oh, pray.  what made a ‘wow’ a ‘hmmmm’?!

c. marketing buzz and magic: whatever you do … whatever you do … dont forget the power of marketing.   even scarcity is an opportunity … if marketed well.  (apple seems to get this right all the time).  why, even google, the purveyor of digital goods has made scarcity an art form … and used it to generate hyper demand.  no wonder you see waves of interest in google!

sai@obviousideas.com

www.obviousideas.com – the Business Value Alignment™ firm, linking Strategy | Organization | Execution

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