Many have argued that the Internet renders strategy obsolete.
In reality, the opposite is true. Because the Internet tends to weaken industry profitability without providing proprietary operational advantages, it is more important than ever for companies to distinguish themselves through strategy. The winners will be those that view the Internet as a complement to, not a cannibal of, traditional ways of competing.
Strategy and the Internet, Michael E. Porter; HARVARD BUSINESS REVIEW pg 62
Additional Pricing Strategies
- This approach is used when the marketer wants the consumer to respond on an emotional, rather than rational basis.
- For example Price Point Perspective (PPP) 0.99 Cents not 1 Euro.
- Consumers use price as an indicator of all sorts of factors, especially when they are in unfamiliar markets.
- Consumers might practice a decision avoidance approach when buying products in an unfamiliar setting.
- Price may be an indication of quality or benefits in unfamiliar markets.
Product Line Pricing.
Where there is a range of products or services the pricing reflects the benefits of parts of the range.
Optional Product Pricing.
- Companies will attempt to increase the amount customers spend once they start to buy.
- Optional ‘extras’ increase the overall price of the product or service.
- For example airlines will charge for optional extras such as guaranteeing a window seat or charging extra for additional luggage or extra legroom.
Captive Product Pricing
- Where products have complements, companies will charge a premium price since the consumer has no choice.
- For example razor manufacturers, printer manufacturers etc.
Product Bundle Pricing.
- Here sellers combine several products in the same package.
- For example Tesco ‘Finest’ Meal Deal for two, or their ‘Movie Nights In’ bundle.
- It is a good way of moving slow selling products, and in a way is another form of promotional pricing.
- Pricing to promote a product is a very common application.
- For example BOGOF (Buy One Get One Free), money off vouchers and discounts.
- Geographical pricing sees variations in price in different parts of the world.
- For example rarity value, or where shipping costs increase price.
- This approach is used where external factors such as recession or increased competition force companies to provide value products and services to retain sales.
Summary of Randy Pausch’s Time Management Lecture
Randy Pausch was an American professor who taught computer science and human-computer interaction at the Carnegie Mellon University. He founded the ALICE software project which acted as an animation design tool for mid-school children and thus introduce them to the concepts of Computer programming. He was known for the many lectures he had given, specifically his “Last lecture” titled “Really Achieving Your Childhood Dreams” as he was diagnosed with pancreatic cancer
and the doctors explained that he didn’t have much time. One of his other well known lectures was on Time management that he presented at the University of Virginia on November 27, 2007.
Pausch was an intellectual who was humorous and courageous, cracking jokes while offering valuable advice on life and giving insights into his areas of expertise. In his time management lecture, he gave a number of ways in which people can work out and plan their activities and thus get more things done and be able to spend more time for their leisure or with their loved ones. Some of the strategies I liked in his lecture include, first and foremost, the four quadrant priority deadline rubric which I feel is the most important habit one must develop if he is to start “managing his time”. Next is keeping time journals which help to keep a check on oneself and shows us what we actually do (and can do) with the time we have on our hands. Of course, planning is essential to success and as Randy Pausch says, “Failing to plan is planning to fail”, we must plan our life and then change it according to our requirements but we can only change it if we have one. Also, scheduling oneself and then deciding on “making” time for the important things based on their opportunity cost will help a person very much and at the same time, he also learns to sacrifice time for the stuff that actually do not matter to him. One habit which I find very useful for me as I am a student is the habit of creating fake classes. I spend nine hours at my university with my courses taking up only four hours. The “free” five hours is a lot of prime time to be wasted if it were not for these fake classes which “magically” reduce the workload I have to do in my home. As he explains, nobody has more or less time but it is how one uses his time that gets more or less of his work done. I would like to end my summary by quoting an old saying which Dr.Gabriel Robins, a professor of computer science at the University of Virginia and a friend of Randy Pausch said, “Talent does what it can, Genius does what it must”.
10 part lesson from Dr Rob Rawson
Dr Rob Rawson
When making a phone call, start with the goal for the call “I have this I want to accomplish today with you”, it will keep things focused.
Rob Rawson is a successful Internet entrepeur who travels the world whilst managing his team of around 50 people (remotely). Rob is an expert at Time Management techniques and in working in a virtual company …. . no office costs, the ability to hire from any city in any country in the world and generally dramatically reduced costs. Also if done right the team is more productive in a virtual environment, working from home, especially if using the Time Doctor software.
Notes for Class
Four Destructive Myths Most Companies Still Live By
Myth #1: Multitasking is critical in a world of infinite demand.
This myth is based on the assumption that human beings are capable of doing two cognitive tasks at the same time. We’re not. Instead, we learn to move rapidly between tasks. When we’re doing one, we’re actually not even aware of the other.
If you’re on a conference call, for example, and you turn your attention to an incoming email, you’re missing what’s happening on the call as long as you’re checking your email. Equally important, you’re incurring something called “switching time.” That’s the time it takes to shift from one cognitive activity to another.
On average, according to researcher David Meyer, switching time increases the amount of time it takes to finish the primary task you were working on by an average of 25 percent. In short, juggling activities is incredibly inefficient.
Difficult as it is to focus in the face of the endless distractions we all now face, it’s far and away the most effective way to get work done. The worst thing you can do as a boss is to insist that your people constantly check their email.
Myth #2: A little bit of anxiety helps us perform better.
Think for a moment about how you feel when you’re performing at your best. What adjectives come to mind? Almost invariably they’re positive ones. Anxiety may be a source of energy, and even motivation, but it comes with significant costs.
The more anxious we feel, the less clearly and imaginatively we think, and the more reactive and impulsive we become. That’s not good for you, and it also has huge implications if you’re in a supervisory role.
As a boss, your energy has a disproportionate impact on those you lead, by virtue of your authority. Put bluntly, any time your behavior increases someone’s anxiety — or prompts any negative emotions, for that matter — they’re less likely to perform effectively.
The more positive your energy is, the more positive their energy is likely to be, and the better the likely outcome.
Myth #3: Creativity is genetically inherited, and it’s impossible to teach.
In a global economy characterized by unprecedented competitiveness and constant change, nearly every CEO hungers for ways to drive more innovation. Unfortunately, most CEOs don’t think of themselves as creative, and they share with the rest of us a deeply ingrained belief that creativity is mostly inborn and magical.
Ironically, researchers have developed a surprising degree of consensus about the stages of creativity and how to approach them. Our educational system and most company cultures favor reward the rational, analytic, deductive left hemisphere thinking. We pay scant attention to intentionally cultivating the more visual, intuitive, big picture capacities of the right hemisphere.
As it turns out, the creative process moves back and forth between left and right hemisphere dominance. Creativity is actually about using the whole brain more flexibly. This process unfolds in a far more systematic — and teachable — way than we ordinarily imagine. People can quickly learn to access the hemisphere of the brain that serves them best at each stage of the creative process — and to generate truly original ideas.
Myth #4: The best way to get more work done is to work longer hours.
No single myth is more destructive to employers and employees than this one. The reason is that we’re not designed to operate like computers — at high speeds, continuously, for long periods of time.
Instead, human beings are designed to pulse intermittently between spending and renewing energy. Great performers — and enlightened leaders — recognize that it’s not the number of hours people work that determines the value they create, but rather the energy they bring to whatever hours they work.
Rather than systematically burning down our reservoir of energy as the day wears on, as most of us do, intermittent renewal makes it possible to keep our energy steady all day long. Strategically alternating periods of intense focus with intermittent renewal, at least every 90 minutes, makes it possible to get more done, in less time, more sustainably.
Want to test the assumption? Choose the most challenging task on your agenda before you go to sleep each night over the next week. Set aside 60 to 90 minutes at the start of the following day to focus on the activity you’ve chosen.
Choose a designated start and stop time, and do your best to allow no interruptions. (It helps to turn off your email.) Succeed and it will almost surely be your most productive period of the day. When you’re done, reward yourself by taking a true renewal break.
Interesting and informative paper on Big-Brother from work sitting on one’s (working !) shoulder