Cristiano Ronaldo Left Soccer To Master Chess (A Company Losing Focus)

Imagine that, if you are great fan of Cristiano that means you are his fan for what he does on the field now you would love him as long as he do great at field now if he decides to leave that arena and go for playing chess to try his luck.

You would probably stick around for a while but eventually you won’t like it and go for some other player who is good at soccer as you love soccer not chess. That’s what happens when a company starts a dumb transition from what got her huge market share to something absurd and eventually end up as nobody.

I say if it doesn’t work for some individual (Critiano Ronaldo for instance) who is famous world around and probably knows himself well then how come it would possibly work for an organization.

This strategy is really devastating when you have huge following in one thing and you sort of try to make them having the same level of interest and urge to purchase something else. The transition from one product to another is dangerous but far devastating could be transition from product to service.

Still I would suggest some steps that would help any organization in its transition but like I said it won’t be easy.

(Addition & Transition) Goods To Services

•  First of all for an effective transition (or addition of services to goods) from goods to services as leading firm in the market you should conduct a thorough market survey under your name and see if market really would love to have your services. If the response is favorable then go for the next step or else as an organization you should take the unfavorable response as the red flag.

• Second step is to constantly remind your customers and in separate manner. Means before implementing transition from a product to service you should be constantly reminding your target market about your plans. This reminding campaign should not be mixed up with your product campaign rather should be carried out completely in isolated manner so to achieve the results but also to not confuse the customers.

•  Step three conduct another market survey to measure the market receptivity regarding your new service. If the results are favorable go for next step or get back to second step and take corrective measures in your reminding campaign to attain the set level of receptivity. Remember the survey should be thorough and covers a large sample

• Final step, once the results are positive then go for transition or addition of service to your tangible product line.

An Example To Consider

Apple did a great job in changing the concept of phone and it was that which gave it the leading edge (in smart phone market) and if you can’t do it anymore (providing superior product that in this case is iphone) and others (Samsung) can or if you are planing transition to something that doesn’t provide you the edge, you are following the wrong strategy.

That’s why we are seeing there has been 50% increase in brand worth of one of its rivals “Samsung” (for 2013) while Apple on the other hand has 1% increase in current year 2013 as per Millward Brown Optimor BrandZ list in May 2013.

While on the other hand the brand worth and market position remained relatively stable or increased for brands who didn’t went into any service addition like for instance Cocacola.

Brand	year	Position in market per brand	Percentage change	Brand worth in $m
Coca-Cola	2006	3rd		41,406
Coca-Cola	2007	4th	7% positive	44134
Coca-Cola	2008	4th	17% positive	58208
Coca cola	2009	3rd	16% positive	67625
Coca Cola	2010	5th	1% positive	67983
Coca-Cola	2011	6th	8% positive	73752
Coca-Cola	2012	6th	1% positive	74286

Brand	year	Position in market per brand	Percentage change	Brand worth in $m
Apple	2006	30th		15976
Apple	2007	16th	55% positive	24728
Apple	2008	7th	123% positive	55206
Apple	2009	6th	14% positive	63113
Apple	2010	3rd	32% positive	83153
Apple	2011	1st	84% positive	153285
Apple	2012	1st	19% positive	182951

The above brand values are taken from the brandz list. What we see is 55% jump by Apple coming up from 30^th brand to 16^th that was the year of Jesus Phone, and next year astounding jump suggests iPhone 3g which went on release in 22 countries that year.

What it suggests is that the people loved Cristiano and they loved it till 2012 when suddenly he went for chess (itunes, icloud, istore and Apple TV) to try his luck. Since that transition Apple has seen so far 1% increase in its brand value in 2013. While at the same time its Samsung that is leaping like Apple old days (with its Galaxy S4).

Anyway if we look at Coca cola we see them being constantly into product, into things that consumers love from coca cola. Perhaps they do thorough surveys now and then and that why their spot and brand value hardly went through any fluctuations all these years. Apple should learn a thing or two from coca cola.

Bottom Line

The bottom line is stick with what you do the best and what got you to the top. Don’t lose focus and do it best from the last day if you want to be on top.

Point to Remember

      After high growth and high sales that means you convinced your customers of one thing and now moving to something else would disappoint them. So you better stick to what you offer, that thing which bought you the top spot. And that’s flat! ;p