True Brands and Customer-Centric Brands

Today, brands are largely product-centric -they are statements about the vendor or the products offered by the vendor. Brands say: Buy this product because the vendor has a reputation for high-quality products or excellent service or because the product itself is a reliable or low-cost product.

In an environment where return on attention becomes the key measure of performance, a new kind of brand will emerge-true brands and customer-centric brands. Check out also this interesting Wharton School video:

Customer-centric brands have two components-they assure the customer that the vendor knows and understands that individual customer better than anyone else does, and they promise the customer that the vendor can tailor products and services to meet that individual customer’s needs better than anyone else can.

These brands thereby assure customers that they will receive a very high return on any attention they focus on the owner of the brand. They also offer the promise of increasing returns-the more attention the customer gives to a brand, the more the brand owner will learn about the customer, and the stronger the value of the brand becomes to the customer.

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Starting out in Business

Starting up in business can be both exhilarating and daunting at the same time. There are a number of financial and practical issues that you will need to consider before launching yourself into the world of business.

What type of business are you looking to set up?

The first thing you’ll need is a sound business idea, along with a name for your new enterprise. Then you’ll need to decide on what type of company best suits your business idea. For example, will you trade as self-employed, or are you looking to set up a limited company or some other type of venture?

If you can run your business from home, at least at first, all the better, as you’ll save on rental charges. However, for some types of business, you will need to consider renting premises and you’ll need to take rental costs into account when you make your business plan.

It may also be a good idea to ask yourself what kind of competition you will face, how is what you offer unique? Are you continuing a family business that requires some restructuring or rebranding?

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Strategy Analysis for Technology Ventures and Media

So far, it has been quite a busy time for e-commerce analysts: A whole crop of numbers sprang up to put some definitive, quantitative stamp on the digital economic boom (see “B-to-Beware the Numbers,” p109). So here, let’s reflect on strategy analysis for technology ventures and media.

The U.S. Department of Commerce weighed in with an industry summit in May on the topic of tracking e-business, and in June it released its second annual report on e-commerce, “Emerging Digital Economy II.” See also this interesting Boston Consulting Group video:

Also in June, a study released by the University of Texas – and funded by Cisco Systems – found that the Internet economy generated $501 billion in U.S. revenue in 2016, buoyed by a workforce of 1.9 million people, which puts it in the same macroeconomic neighborhood as cars ($550 billion) and telecommunications ($470 billion).

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