March 2007 Archives
Here you’ll find a collection of articles published during the month of March 2007.
Oracle Simplifies Licensing, Again
By Bruce LaFetra on March 5, 2007
What do you do if you have a mature product and the market gives you grief over your complex pricing? You have to do something, but what you do depends on your level of market power and your view of pricing. With Oracle’s latest pricing announcement, one gets the sense that Oracle is still being Oracle. That is, this is the latest installment in Oracle’s attempt to update pricing without actually changing their pricing much. As the category leader, they get pressure to lower prices but know that they don’t have to do so. So while the headline suggests Oracle is simplifying, they are not. They remain, as ever, optimized for revenue capture.
The Devil Dials Prada
By Marsha Keeffer on March 5, 2007
Knowing and understanding various ways to drive growth is tied directly to knowing what market (or segment) you’re serving. If Motorola, Nokia and other firms in the communications industry view themselves as handset makers, that’s actually just the start. For a certain customer segment, handset makers are in the accessories business. Apple’s iPhone is the latest proof that the market is not just about phones but about lifestyle. Apple’s phones are not even in user’s hands yet, but it’s a powerful signal to the industry—ignore design and fashion at your own risk.
When the Best Defense Is Growth
By Michael Mace on March 5, 2007
If your business is targeted by a larger competitor, the natural response is to want to play defense—to squeeze pricing, take special care of the channel, maybe do some promotions and guerrilla marketing. We’d never advise you to take your eye off a competitor, but the defensive reaction isn’t always the best way to fight. A larger competitor will expect you to do these things, and will usually be well prepared for siege warfare. They’ll be ready to match your pricing and outspend you in the channel in order to drive you out of the market.
Sometimes the best defense isn’t defending at all, it’s finding ways to grow the market. If your customers are still early in the adoption curve, and especially if there are new segments you can open up, it’s usually more cost-effective for you to bring in new users than it is to defend every inch of the turf you hold today.
The Holy Grail Is Reachable
By Nilofer Merchant on March 5, 2007
SME / SMB’s—once the Holy Grail of the industry—appear to be a highly coveted group. Moving from being an enterprise player to play in the mid-market is incredibly challenging. We’ve worked with a few companies of late who have asked us to come in and help them achieve this new market summit. Having done this a bunch with some Silicon Valley blue chip names, I can see the common pitfalls they face and want to tell you how to avoid them.