Video Case 1: Burton SnowboardsVideo Case 1: Burton Snowboards

• Recognizing a Business Opportunity• Why did it fail in the beginning?• What really is their product?* • How do they develop a new product?• Idea of subculture* (cf. HOG)• Marketing Mix for Burton Snowboard• A Key Question for the future of Burton

Subculture & Customer LoyaltySubculture & Customer Loyalty

• Definition: A group of people with shared value system based on common life experiences and situations

• Examples

• How do you make customer loyal?– Two Routes

Can Electronics Stores Survive? (WSJ): Can Electronics Stores Survive? (WSJ): 1.1. Where do you shop for electronic gadgets?Where do you shop for electronic gadgets?

2.2. Losers and WinnersLosers and Winners

3.3. What Losers are DoingWhat Losers are Doing1. Best Buy: High end products, support, and smaller stores

2. GameStop: used gadgets

3. Radioshack: mobile devices sales (iPhone*)

4.4. Is there a future for those losers? Is there a future for those losers?

Avoiding Innovation’s Terrible Toll (WSJ): Avoiding Innovation’s Terrible Toll (WSJ): 1.1. ““Average large firms do not live as long as ordinary Americans”Average large firms do not live as long as ordinary Americans” Why do some firms die early, while others survive and prosper?Why do some firms die early, while others survive and prosper?

2.2. How can large companies innovate quickly enough?How can large companies innovate quickly enough?1. Ruthless about change: cannibalize yourself! (change from inside)

2. Make frequent acquisitions (change from outside)

3. Luck and timing!

3.3. Losers: bureaucratic, play defensive, and slowLosers: bureaucratic, play defensive, and slow

4.4. Examples: IBM* versus HP; Apple versus KodakExamples: IBM* versus HP; Apple versus Kodak• Does a leader matter?• Apple the cannibal?

5.5. Recommended Reading: Lou Gerstner; Innovator’s dilemmaRecommended Reading: Lou Gerstner; Innovator’s dilemma

Apple Drives Comeback of Retail Computer Store Apple Drives Comeback of Retail Computer Store (WP): (WP):

1.1. Dell and the direct-to-consumer model Dell and the direct-to-consumer model demise of offline demise of offline channel?channel?

2.2. Enter Apple* Enter Apple* 1. Question: Why does Apple store succeed but Gateway

Country Store bombed?

3.3. Follower: Microsoft Follower: Microsoft Will it succeed? Will it succeed?

4.4. Bad news for AmazonBad news for Amazon

5.5. Reality: Only 7% of total retail sales are through online.Reality: Only 7% of total retail sales are through online.

Cellphones are eating the family budget (WSJ) Cellphones are eating the family budget (WSJ)

1.1. Household spending on restaurants, apparels, and Household spending on restaurants, apparels, and movies.movies.

2.2. Household spending on cellphones.Household spending on cellphones.

3.3. Why? Why?

4.4. What would you do if…?What would you do if…?