# Create a company, pick a certain positioning. Stick to it.
# Generally speaking, Vertical positioning is better than horizontal positioning. It is preferable to start from one industry, optimise the operations and grow from there. Microsoft is probably an exception to this rule, but then again it is perhaps the only one of its kind. The example of Documentum is worth noting. The company simply focussed on preparing documentation for Pharma companies where applications are required to be submitted to multiple regulatory authorities. At the time we are referring to, it took approx one year to submit applications. In one year, Documentum increased its revenue from 2 Mn $ to 8 Mn $ and added, 30 leading pharma companies. By year 2, the revenue had already touched 25 million $. Jocularly, Dr Korwar remarked that even after spending 10 years at IIM A, initially, he wasn’t able to get many consulting assignments. Then he positioned himself as a consultant in the software business and the scenario changed completely in his favour. The Maruti example was also cited. Various models of Maruti were plotted on a graph, based on price. Positioning is best addressed by “market pain”. To address these areas, is a sure way to get a positioning strategy in place. In layman’s terms, what really is a segment? Basically, a market segment are people who reference each other.
# Blue Ocean Strategy – out of nothingness. Nintendo, in the 80’s and 90’s was the market leader in video games. However in 2000, they lost out to Sony Playstation and Microsoft X Box, which were technologically more advanced. To combat this challenge, Nintendo reinvented themselves and created an entirely new market. They targeted 60 year olds, rather than children. The company developed games targeted at this segment and turned around the scenario in their favour. They created Wii which did not require display of fine motor control – a feature which worked to the advantage of elderly people. But, the irony of the situation is that kids still beat their grandparents at these games too! Wii today is a dominant game box.