|
|
Like this article? PLEASE +1 it! |  |
|
Lesson #5: Stay One Step Ahead By Anticipating Your Competition
Article Overview: Gillette’s idea for a disposable safety razor was a novel one, and like most other novel ideas, it inspired countless copycats. As it turns out, Gillette was not only attracting customers with his unique razor, but a surge of competition. Until 1921, Gillette knew he had his bases covered, but he also knew that after that he would have to step up his game. 1921 was the year that his original patents were set to expire.
 |
Free Download - King Gillette Quotes By King Gillette |
Lesson #5: Stay One Step Ahead By Anticipating Your Competition
Gillette’s idea for a disposable safety razor was a novel one, and like most other novel ideas, it inspired countless copycats. As it turns out, Gillette was not only attracting customers with his unique razor, but a surge of competition. Until 1921, Gillette knew he had his bases covered, but he also knew that after that he would have to step up his game. 1921 was the year that his original patents were set to expire.
Rather than sitting back and relying on his brand name and whatever customer loyalty he had built up since being in business to carry him through, Gillette decided to take action. He was not going to let his competitors sideswipe him out of business once his patents expired. Instead, he chose to anticipate their entry into the market and prepare himself accordingly.
Gillette knew that the second his patents expired, there would be an avalanche of knockoffs of his razors in the market. With that, he decided to both design and patent a new and improved model. And, how did he go about promoting it? He knocked his original product and said it was never as good as his new one. “Any other razor you’ve ever known is crude,” read one Gillette ad at the time.
While pushing his new product, Gillette did not forget about his old one. Instead of discontinuing the model and admitting total defeat, Gillette repackaged the razors and sold them at a tremendous price markdown. He also introduced an intermediate razor, so as to make his presence known at three different price points and strengthen his overall market share.
Throughout his career, Gillette had an astute ability for anticipating the future and its trends. Just two weeks prior to the stock market crash of the 1930s and the ensuing Great Depression, Gillette sensed the bad times ahead. He informed the company that he would be selling off a large portion of his company stock. His reason was supposedly to pay off mortgages he had on various properties throughout California, but Gillette knew there was a rough road ahead.
Unfortunately, Gillette executives at the time convinced him otherwise. After realizing how Wall Street would react once it found out about the company’s founder selling his stocks, they talked Gillette out of the sale. Soon after he backed off, however, the stock market crashed. Within five years, Gillette had lost almost all of the wealth he had accumulated throughout his life. By the time he passed away in 1932, he was almost bankrupt. This time, he had anticipated the future, but he had let others distract him from his gut instinct.
Gillette was one businessman who refused to ever sit still. When things were going well, he was always thinking about how to make them better, and that meant trying to figure out what his competitors were going to do next. By anticipating future trends in the market, Gillette was able to stay one step ahead of the game.
Lesson #3: “Never underestimate the competition”
New Competition in 2008
A Cool Time Management Lesson From A Fruit Smoothie!
How Are You Doing In Business? A Checklist by Robin J Elliott
What are you really good at?
Related Forum Posts
Re: Your choice between...
- I will take the $100,000 and double it on it becomes millions before I spend it. Though I am crazy about information, yet I would rather take the money and turn it into a million before I spend a dime out of it. I will do it in 4 steps.
Step 1 turn $100,000 to $200,000
Step 2 turn $200,000 to $400,000
Step 3 turn $400,000 to $800,000
Step 4 turn $800,000 to $1600,000.
After getting the goal of step 4, I will spend the $600,000 on myself then continue to double the millions again. I could then by the book for $1,000,000
Step by step approach
- Here's what I would do;
Step 1 - Observe Wal-Mart’s target customers, what does Wal-Mart offer them? How long do they stay? Discover what it is that they might want or need that Wal-Mart doesn't offer, and then write those ideas down. Some ideas to get you started are - A cafe or fast food venue, something for the kids to do while the parents shop, etc
Step 2 - Take that list, and weigh up the pros and cons of each idea, and then select the best one for you. Don't worry about not using all the space.
Step 3 - Start the best business for you, and then release the other ideas to the general market and sublet the rest of the space to those who could fill some of the niches you've come up with, plus any they can come up with. If money isn't a factor then developing the building to suit multiple small leases may be a better option, as it's a diversified income, which is potentially more stable than one big income stream.
Need a book recommendation for writing better
- I'm always looking for ways to improve my writing skills, so I was just wondering if anyone could recommend a good copywriting or copyediting book?
I was actually thinking of reading "The Copywriter's Handbook : A Step-by-Step Guide to Writing Copy That Sells" by Robert W Bly [u:w3cg00nn]OR[/u:w3cg00nn] "The Copyeditor's Handbook: A Guide for Book Publishing and Corporate Communications" by Amy Einsohn. Would anyone know if these books are any good?
Thanks
Re: Video conference system for families living in different cou
- 1) How much will someone pay for the service?
2.1) What costs are involved on the business end?
2.2) What percent on top of that do you think you deserve as profit?
3) How many people will sign up for the service?
These three will give you a rough estimate of the value of your idea.
use the equation below with respect to the questions above to figure out the value of your idea.
((1 - (2.1 + 2.2)) X 3)
You have alread identified major problems for your idea -- you have competition that is free! Computers are easy to hook to televisions, and it is becoming easier at very fast rate.
(For free stuff other than skype, look up NetMeeting if you have Windows XP.)
The video conferencing systems do a poor job of creating the feel of a physical presence.
Even high dollar systems with dedicated internet bandwidth and extremely nice tracking video cameras do a poor job, especially for long distance runs. I have the experienced the disappointing performance of some of these systems on our campus.
Video can not recreate the connection felt when in the same room with another person.
Step 1, Quickly and roughly calculate the cost of the system you propose.
Step 2, Compare that with what you think someone will pay and the cost of your current compeition.
Step 3, Go / No-Go.
Re: Congratultations to GT!
- Hi GT,
Competition is great and i know I wouldn't be here without it, but it is not the main reason for posting and participating. But I admit, it is the trigger I need to get some work done.
If there is none, i create one for myself and try to make it.
First prize is ice cream.
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: 
Lesson #3: “Tell ‘em quick and tell ‘em often”
Searching for the Stars: How Yang and Filo Took Their Business to New Heights
Salesperson Wimp-Out: I Need Help 
February 2012 Top 100 Leadership Experts to Follow on Twitter
Please Stop Calling it Coaching!
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Four Reasons Why Entrepreneurs Should Blog
Sales Flubs
Fear Factors in Small Business: Sales & Marketing
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.