Situation: A company has clients who are interested in projects for which the company’s partners already have partial designs. There is an opportunity to leverage these partial designs into development of full solutions for their clients. How should the company approach this in a way that satisfies their customers and is fair to their partners? How do you set up co-development partnerships?
Advice from the CEOs:
Given this opportunity it is no longer important who performed what part of the development. As long as your partners have quoted you what they believe to be a fair price for their development pieces, you are free to accept their price, complete development to your clients’ specifications, and sell the full solution to the client at market prices.
What you bring to the table is the opportunity to rapidly monetize the technology. This is something that your partners can’t do, so by filling this role you are acting in the interest of all parties.
What you charge for your work and the full solution depends on the potential value to the client. Time is money, and delivery now is worth a premium price to a client who needs your solution and wants to release their product as soon as possible.
This strategy is particularly applicable to early stage companies who need to release their initial products and start generating revenue.
Take a note from Bill Gates – sell the product for a good price and then buy or acquire the supply.
Situation: A company faces a question branding a new product – what should lead the branding focus: product design or product attributes that will be an eventual part of the branding strategy? Which should lead in building brand focus?
Advice from the CEOs:
There are two areas of focus – each an important part of the overall trademark and branding strategy:
A distinct name or symbol, for example Amazon.com or eBay, will gain the right kind of attention and be easy for potential customers to remember. The prime risk here is stepping on someone else’s mark.
Your overall branding strategy. The point here is not confusing your customers. Marketing people will advise you to KISS – Keep it Simple Stupid! One tack is simplifying the complexity of technology.
It is important to develop a consistent set of product attributes – one that you know through research will resonate with your client base – before your Alpha launch. It is dangerous to conduct an Alpha launch without clarity on this point. Subtleties of the eventual brand do not need to be finalized, but the overall framework of key product attributes should be consistent and clear from the beginning.
Design and the development of important product attributes ideally take place in synch with each other. Positioning will depend on your audience, and the unique needs and expectations of the audience.
The name itself could be important. Being clear and easy to spell may be important. Test alternative names for this trait.
Situation: A company has two businesses in different locations serving different sets of customers in two separate markets. The CEO is evaluating whether it makes more sense to have one umbrella web site with pages for each of the two businesses, or to create two complete web sites with different URLs. How many web sites should a small business have, and why?
Advice from the CEOs:
The first question is whether you call both businesses the same or different names. Many small companies have separate businesses at different sites, and just differentiate the businesses through division names. Moreover, because you use the same company name for both businesses, you want to make it easy for customers to find your web sites. This argues for at least a single splash page, listed under your current company URL.
There are many corporations with diverse, unrelated businesses. Generally, these corporations don’t have any problem having a general web site, with separate links to the individual division web sites where customers and partners can drill down to detail specific to each division. The advantage to this strategy is that by having one corporate site, the larger entity strengthens its own market presence.
Given that the advice of the group is to have a single splash page how do you construct it?
You want to prominently feature your company name on the splash page, but not to include much detail. Maybe just an overall positioning message that expresses your core values or a distinctive visual that shows what you do.
On the splash page, create two links with distinctive pictures and names that enable your customer to easily go to the side of your business that interests them.