A Reflection on the Article
It has been observed that at different periods, we tend to move our thoughts in a specific direction. This is usually as per geographical borders. The majority of the people tend to think, speak and/or act this specific way, the similarities being more pronounced as the geographical area decreases. This similar interest in a specific time is called the trend at that time. This article details why ignoring trends is not healthy for a business. The article also shows how trends can give companies the chance to innovatively assimilate its products or services in line with the trend, by application of strategic thinking and thereby march ahead of its business rivals.
The article is authored by Professor Alie Ofek of Harvard Business School and Professor Luc Wathieu of McDonough School of Business, McDonough School of Business under Georgetown University. The primary audience of the authors is, in the order of priority, the Managers & Executives of American Industrial Houses, Managers & Executives of European, Japanese and other western developed countries which have capitalistic economies. The intellectual and practical expertise which is found in Harvard Business School is perhaps one of the best examples of a business research Centre. Here theories are formulated, discussed and research done with funding from the major companies of the world. The company representatives also participate in the research along with the professors and students. Results and conclusions are more often than not published in the HBR, the purpose being to make the knowledge obtained all over the globe. This article has also been taken from the Harvard Business Review where it was published by the authors for the same purpose.
The authors in the article illustrate their point through three current trends and show how established companies have innovatively combined their products with these trends and succeeded in business enhancement.
Digital Technology: Increasing use of digital technology and applications is common today. In digital technology, some salient features are short term utility, net-working with strangers virtually, multi-tasking etc. Reference is made to the sports apparel specialist Nike here. The company tied up with APPLE to has made big success of its Nike+ programs for health conscious people. These shoes equipped with sensors fitted in the shoe special compartment and connects without wires to the I-pod where it records the time, the apparent jogging distance and the calories burned. Later, the jogger can record the data properly in his or her computer. Here Nike has used the trend to make a winning proposal to health buffs. Again MEII videogames uses the negative concept of digital games. Its digital game ME-II has been programmed so that you attain proficiency only after you physical exercise
(B)Increasing sensitivity of costs and expenditure among the public, in view of the great recession: The most common solution is lowering costs or quality or both of the products of a company. Coach innovated and introduced another range of bags called poppy. The bag line was an success for coach, poppy’s price being about a 100$ less at about 250$. To differentiate between poppy and Coach normal expensive brands, poppies are come in bright colors and designs.
(C) Global Warming and Carbon Footprint: Here, Tesco introduced innovative schemes which encouraged customer’s to go in for recycling of cartridges, plastic bottles, cans etc. Tesco introduced environment friendly house insulation material, provision to rent a plot of land for gardening etc. Customers partaking of these products are eligible to earn points which can be converted to cash after a certain value.
We can therefore classify the interaction of a company’s strategic plan with the existing trends so that the value of the product is further enhanced. As described vide examples, they classify it as (1). Infuse and augment (Poppy Bags) (2). Combine and transcend (NIKE+) and (3) Counteract and reaffirm (ME-II video games)
Identification of trends which matter and are important, can be done by
Separating the significant trends from the insignificant.
Carrying out two separate studies –one of the trend profile and the other of the business.
Study the results and decide what to do.
Finalize and implement potential strategies.
Finally, manager should beware of the following common ways of making mistakes
(1) trend may be in a different category and therefore ignoring it
(2) Taking action too early
(3) Waiting too long to take action
The authors make their point superbly here. Giving appropriate examples at various points, they try their best to make the paper maintain the same pace throughout. However, today’s managers start young and not everybody will be able to sweep away the jargon and arrive at the logical end. This article may have been written for peer review in which case it will be of help in marketing to a very high degree but the structure and language may prove to be a little tough for young managers. The paper will be much more effective for an experienced executive then for the newbie manager.
