Moshe Engelberg On Everything Marketing

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July 22, 2009

Strategic incrementalism

I was talking today with a very smart colleague who runs a large health department. He is one of the best leaders I know. As he was bemoaning the impending budget cuts here in California, he also exerted optimism. He knows that great leadership shines in tough times. That means be honest, but not hopeless. Even with furloughs and layoffs, in a well-led organization, there is still reason for optimism. This reminds me of one of my favorite sayings: It is what it is.

In light of a worldwide recession and a worldwide pandemic and in an industry (in this case public health) repeatedly hammered by budget cuts, there may only be room right now for incremental gains. However, these gains need not be anywhere there is a foothold. They can and should be tied to your fundamental purpose. As Jim Collins says, "preserve the core." And at the same time stimulate progress. 

So whether the gains are about protection or growth, and even if they are very small, they should be both strategically planned and celebrated. So whenever you have a good small win, remember you're practicing the art of strategic incrementalism.


Filed under  //   growth   jim collins   leadership   purpose   strategy  
Posted by Moshe Engelberg 

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July 17, 2009

Talk about a niche market
The first "pet only" airline in the U.S. is flying. Pet Airways have outfitted their planes for pets only, along with special pet lounges in the airports they use. Dogs and cats travel in the main climate-controlled cabin with special attendants and anywhere/anytime bathroom privileges.

One news story quoted a customer justifying the investment for her dog: "He's a member of our family," she said. "He's certainly not cargo and he's not a suitcase."

A quick analysis might suggest that launching a new company with a new luxury service in an industry that is in terrible shape during a severe recession might not be a great idea. Or... is there enough demand among  extreme pet lovers with discretionary income to make Pet Airways a success?

Personally, I love my dog Lukie.

But he's still a dog. It may be a sweet idea, but my guess is Pet Airways won't fly for long. Not knowing their capitalization, I give them two years.

What's your guesstimate?

Filed under  //   business   economic downturn   Entrepreneurial   luxury service   market segmentation   niche market   Pet Airways   pets   product launch   recession   strategy  
Posted by Moshe Engelberg 

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