Should Brands Endorsed by Salman Khan Drop Him – Strategy with RS

The trailer of Salman’s next film Bajrangi Bhaijaan released recently and in a short span of time accrued lakhs of views. I saw it too and I pose this question to you – if Salman Khan was endorsing your brand would you drop him from your campaign? I would.

Celebrity Endorsement is based on the marketing concept of Brand Attribution. The celebrity has certain traits associated with her/him. When a Brand wishes those traits to be associated with them, they sign up the celebrity to endorse their brand. Through the association of the celebrity, many of these ‘celebrity’ traits get rubbed on to the brand. Also fans of the celebrity start having a favorable view of the brand and may end up patronising them.

Now let’s get back to Salman Khan. Before conviction, the traits associated with him were – superstar, bold, fearless, macho, daredevil, winner & more. Brands like Thumbs Up, who wished these traits to be associated with them, signed on Salman Khan for endorsement.

Now with his conviction, the traits that are likely to be associated with him,over time, could be – law-breaker, criminal, negligent. And if a brand continues to be endorsed by him then there are fair chances that these traits may get rubbed on to the brand.

People buy brands that reflect them. Existing customers of Thumbs Up who do not see themselves as ‘law-breaker, criminal, negligent…’ may move away from it should Salman Khan continues to endorsed it.

What would you do If Salman Khan was endorsing your brand?

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rajesh-srivastava-insideiim

 

 

In this series, Rajesh Srivastava, Business Strategist and Visiting Faculty at IIM Indore gives you a regular dose of strategy case studies to help you think and keep you one step ahead as a professional as compared to your peers. Rajesh is an alumnus of IIM Bangalore and IIT Kanpur and has over 2 decades of experience in the FMCG industry. All previous Strategy with RS posts can be found here


Rajesh Srivastava

Message Author

The Reason Behind Santa’s Red Suit – Strategy With RS

Merry Christmas!

Here is a question for you?

What is the colour of Santa Claus’ suit?

Red?

Yes, you are right. But if you turn pages of history, you may discover to your consternation that it was green.

Then how did the Santa Claus’ suit turn red?

To answer that question, let me pose a question to you.

It is a hot day and you are extremely thirsty. Lord behold, you see ‘red’ colour. Which brand of soft drink will come to your mind?

Chances are good that you will remember Coca-Cola!

Why?

Since the 1920s, Coca-Cola has made a conscious effort to own ‘red’ colour ‘in the minds and hearts of people.

Why did Coca-Cola make this attempt? Research indicates that if a brand owns a colour in customer mind then whenever the customer sees the colour it is likely to remind them of the brand – increases brand recognition by up to 70%.

And that’s what happened to you when you saw red colour on a hot afternoon.

Why did Coca-Cola opt for Santa Claus? Because Santa Claus personifies Happiness – he brings happiness to people’s lives – a trait that is also associated with Coca-Cola!

How did Coca-Cola achieve strong association with Santa Claus? Through consistent advertising, which featured Santa Claus, adorned in a red suit – in favour of a green suit!

 

Bottom line:

1. Get a colour associated with your brand, it is likely to increase your brand recognition by up to 70%.

2. It is a zero cost advertising vehicles zilch to the brand.

 

 

——————-

About the Author:

rajesh-srivastava-insideiim

In this series, Rajesh Srivastava, Business Strategist and Visiting Faculty at IIM Indore gives you a regular dose of strategy case studies to help you think and keep you one step ahead as a professional as compared to your peers. Rajesh is an alumnus of IIM Bangalore and IIT Kanpur and has over 2 decades of experience in the FMCG industry. All previous Strategy with RS posts can be found here.


Rajesh Srivastava

Message Author

Is Your Brand A Noun Or A Verb? – What It Means To Verbify Your Brand – Strategy With RS

#PayTM karo? Is gradually becoming a part of our day-to-day vocabulary. From Taxi drivers to roadside vegetable vendors, everyone’s urging their customers to PayTM karo – Make online payment.

What does it mean for PayTM the brand?

A lot! Because it is on the cusp of getting the highest recognition that can be conferred on a brand – becoming verbified, which means, it migrates from being merely a ‘noun’ to becoming a ‘verb’.

When does a brand become a verb? When it starts to represent the category it has created or in which it operates.

This puts other brands that enter this category, at a disadvantage because they get referred by the ‘verfiified’ brand name and not by theirs.

Let us shift our discussion to PayTM. It was one of the pioneers in offering an online payment (cashless payment) option in India. Since its inception in 2010, it has invested heavily in promoting itself – & therefore has become synonymous with cashless payment. If a person wishes to ask somebody to send him money digitally, he simply tells the person to, ‘PayTM karo! ( Do PayTM!)

Is PayTM the 1st brand to be ‘verfied’? Of course not!

Take Colgate toothpaste. It has become a verb & stands for the toothpaste category. Many Indians, ask retailer, ‘Colgate dena? (Give me Colgate!) – When they may want to buy Pepsodent toothpaste!

Is this phenomenon restricted to India? Of course not. Many global brands also have become verbs!

· #Google which has become synonymous with search

· #Uber has become synonymous with taking a taxi

How does a brand become a verb?

Let me share with you a partial list of conditions required for a brand to become a verb –

· The brand should clearly and unambiguously stand for one thing. Take PayTM – it stands for cashless (digital) payment!

· The thing for which the brand stands should not have been popular earlier. Cashless (Digital) payment was not very popular before PayTm!

· The thing for which the brand stands should be done often. Take payment. It is done multiple times in a day. On each of these occasions, PayTM can be relied to complete this requirement!

· The product should be seen as being ‘Cool’! Take PayTM – is not digitally doing cashless transaction ‘Cool’!

BTW, in a category only one brand can wear the crown of being verbified – 2 verbs cannot co-exist and both be verbified! For example, you can ‘Google it’ not Bing it! Or you can Uber it, not Ola it and so on.

So as a brand custodian, you should aim to verbify your brand. It is the ultimate honour you can confer on your brand!

 

 

——————–

About the Author:

 

rajesh-srivastava-insideiim

In this series, Rajesh Srivastava, Business Strategist and Visiting Faculty at IIM Indore gives you a regular dose of strategy case studies to help you think and keep you one step ahead as a professional as compared to your peers. Rajesh is an alumnus of IIM Bangalore and IIT Kanpur and has over 2 decades of experience in the FMCG industry. All previous Strategy with RS posts can be found here.


Rajesh Srivastava

Message Author

Destroy Your Business To Future Proof It – The New Mantra For Success – Strategy With RS

Friends, do you know the new mantra for success?

Actively work towards killing your own business. Why this belligerent attitude towards your own creation?

Because of the changing face of competition.

Earlier ‘competition’ was direct and visible. Now it has become cross-industry (indirect) and invisible. Therefore it is very difficult to anticipate the onslaught from an ‘invisible’ competitor. Result: Most of the time the victim is caught off-guard and in many cases, they just disappear, without even leaving a trace!

Has any company suffered this fate, because they did not pay heed to this new rule?

A host of companies have had to face the ignominy of having to loose their pre-eminent market leadership position by either getting bought out (Nokia) to file for bankruptcy (Kodak) or have face the ignominy of plunging valuation – Pebble (from $740 million to $40 million), Yahoo (from $ 44.6 billion to $4.8 billion) & Groupon (from $6 billion to $2.3 billion).

Has any company proactively embraced this belligerent strategy & thrived?

Facebook has! It has made this and more a part of every employees mandate.

How does FB ensure that this strategy is executed successfully?

FB decided to come out with a book, titled Facebook’s Little Red Book, which it gives to all its new employees – since 2012, the year that it hit its 1 billionth-user milestone. This booklet contains a compilation of company’s ideas & culture & expects its employees to live by it!

Let me give you a glimpse of guiding principles, which Facebook expects its employees to live by, as shared in the Little Red Book:

1. Facebook was not originally created to be a company. It was built to accomplish a social mission – to make the world more open and connected

2. Changing how people communicate will always change the world.
Greatness and comfort rarely co-exist

3. The quick shall inherit the earth: Fast is better than slow! Those who ship quickly can improve quickly. So the fast doesn’t just win the race. It gets a head start for the next one.

4. When you don’t realise what you can’t do, you can do some pretty cool stuff.

5. Remember people don’t use Facebook because they like us. They use it because they like their friends

6. We don’t build services to make money; we make money to build better services

7. If we don’t create the thing that kills Facebook, someone else will: ‘Embracing change’ isn’t enough. It has to be hardwired into who we are that even talking about it seems redundant. The Internet is not a friendly place. Things that don’t stay relevant don’t even get the luxury of leaving ruins. They disappear.

Want to protect your business from the fate of Nokia and Kodak and imbibe the proactive thinking of Facebook? If yes, then I would invite you to read my article published on Founding Fuel, titled, ‘Disrupt or destroy your business to make it stronger.’ This article is embellished with examples drawn from Amazon, Netflix so that you get a good idea on how these companies successfully disturbed / destroyed their own business to future proof it. Then you too can conceptualise a strategy to future proof your business!

 

 

—————-

About the Author:

rajesh-srivastava-insideiim

In this series, Rajesh Srivastava, Business Strategist and Visiting Faculty at IIM Indore gives you a regular dose of strategy case studies to help you think and keep you one step ahead as a professional as compared to your peers. Rajesh is an alumnus of IIM Bangalore and IIT Kanpur and has over 2 decades of experience in the FMCG industry. All previous Strategy with RS posts can be found here.


Rajesh Srivastava

Message Author


Message Author

Friends, do you know the new mantra for success?

Actively work towards killing your own business. Why this belligerent attitude towards your own creation?

Because of the changing face of competition.

Earlier ‘competition’ was direct and visible. Now it has become cross-industry (indirect) and invisible. Therefore it is very difficult to anticipate the onslaught from an ‘invisible’ competitor. Result: Most of the time the victim is caught off-guard and in many cases, they just disappear, without even leaving a trace!

Has any company suffered this fate, because they did not pay heed to this new rule?

A host of companies have had to face the ignominy of having to loose their pre-eminent market leadership position by either getting bought out (Nokia) to file for bankruptcy (Kodak) or have face the ignominy of plunging valuation – Pebble (from $740 million to $40 million), Yahoo (from $ 44.6 billion to $4.8 billion) & Groupon (from $6 billion to $2.3 billion).

Has any company proactively embraced this belligerent strategy & thrived?

Facebook has! It has made this and more a part of every employees mandate.

How does FB ensure that this strategy is executed successfully?

FB decided to come out with a book, titled Facebook’s Little Red Book, which it gives to all its new employees – since 2012, the year that it hit its 1 billionth-user milestone. This booklet contains a compilation of company’s ideas & culture & expects its employees to live by it!

Let me give you a glimpse of guiding principles, which Facebook expects its employees to live by, as shared in the Little Red Book:

1. Facebook was not originally created to be a company. It was built to accomplish a social mission – to make the world more open and connected

2. Changing how people communicate will always change the world.
Greatness and comfort rarely co-exist

3. The quick shall inherit the earth: Fast is better than slow! Those who ship quickly can improve quickly. So the fast doesn’t just win the race. It gets a head start for the next one.

4. When you don’t realise what you can’t do, you can do some pretty cool stuff.

5. Remember people don’t use Facebook because they like us. They use it because they like their friends

6. We don’t build services to make money; we make money to build better services

7. If we don’t create the thing that kills Facebook, someone else will: ‘Embracing change’ isn’t enough. It has to be hardwired into who we are that even talking about it seems redundant. The Internet is not a friendly place. Things that don’t stay relevant don’t even get the luxury of leaving ruins. They disappear.

Want to protect your business from the fate of Nokia and Kodak and imbibe the proactive thinking of Facebook? If yes, then I would invite you to read my article published on Founding Fuel, titled, ‘Disrupt or destroy your business to make it stronger.’ This article is embellished with examples drawn from Amazon, Netflix so that you get a good idea on how these companies successfully disturbed / destroyed their own business to future proof it. Then you too can conceptualise a strategy to future proof your business!

 

 

—————-

About the Author:

rajesh-srivastava-insideiim

In this series, Rajesh Srivastava, Business Strategist and Visiting Faculty at IIM Indore gives you a regular dose of strategy case studies to help you think and keep you one step ahead as a professional as compared to your peers. Rajesh is an alumnus of IIM Bangalore and IIT Kanpur and has over 2 decades of experience in the FMCG industry. All previous Strategy with RS posts can be found here.


Rajesh Srivastava

Message Author


Message Author

Friends, do you know the new mantra for success?

Actively work towards killing your own business. Why this belligerent attitude towards your own creation?

Because of the changing face of competition.

Earlier ‘competition’ was direct and visible. Now it has become cross-industry (indirect) and invisible. Therefore it is very difficult to anticipate the onslaught from an ‘invisible’ competitor. Result: Most of the time the victim is caught off-guard and in many cases, they just disappear, without even leaving a trace!

Has any company suffered this fate, because they did not pay heed to this new rule?

A host of companies have had to face the ignominy of having to loose their pre-eminent market leadership position by either getting bought out (Nokia) to file for bankruptcy (Kodak) or have face the ignominy of plunging valuation – Pebble (from $740 million to $40 million), Yahoo (from $ 44.6 billion to $4.8 billion) & Groupon (from $6 billion to $2.3 billion).

Has any company proactively embraced this belligerent strategy & thrived?

Facebook has! It has made this and more a part of every employees mandate.

How does FB ensure that this strategy is executed successfully?

FB decided to come out with a book, titled Facebook’s Little Red Book, which it gives to all its new employees – since 2012, the year that it hit its 1 billionth-user milestone. This booklet contains a compilation of company’s ideas & culture & expects its employees to live by it!

Let me give you a glimpse of guiding principles, which Facebook expects its employees to live by, as shared in the Little Red Book:

1. Facebook was not originally created to be a company. It was built to accomplish a social mission – to make the world more open and connected

2. Changing how people communicate will always change the world.
Greatness and comfort rarely co-exist

3. The quick shall inherit the earth: Fast is better than slow! Those who ship quickly can improve quickly. So the fast doesn’t just win the race. It gets a head start for the next one.

4. When you don’t realise what you can’t do, you can do some pretty cool stuff.

5. Remember people don’t use Facebook because they like us. They use it because they like their friends

6. We don’t build services to make money; we make money to build better services

7. If we don’t create the thing that kills Facebook, someone else will: ‘Embracing change’ isn’t enough. It has to be hardwired into who we are that even talking about it seems redundant. The Internet is not a friendly place. Things that don’t stay relevant don’t even get the luxury of leaving ruins. They disappear.

Want to protect your business from the fate of Nokia and Kodak and imbibe the proactive thinking of Facebook? If yes, then I would invite you to read my article published on Founding Fuel, titled, ‘Disrupt or destroy your business to make it stronger.’ This article is embellished with examples drawn from Amazon, Netflix so that you get a good idea on how these companies successfully disturbed / destroyed their own business to future proof it. Then you too can conceptualise a strategy to future proof your business!

 

 

—————-

About the Author:

rajesh-srivastava-insideiim

In this series, Rajesh Srivastava, Business Strategist and Visiting Faculty at IIM Indore gives you a regular dose of strategy case studies to help you think and keep you one step ahead as a professional as compared to your peers. Rajesh is an alumnus of IIM Bangalore and IIT Kanpur and has over 2 decades of experience in the FMCG industry. All previous Strategy with RS posts can be found here.


Rajesh Srivastava

Message Author


Message Author

Friends, do you know the new mantra for success?

Actively work towards killing your own business. Why this belligerent attitude towards your own creation?

Because of the changing face of competition.

Earlier ‘competition’ was direct and visible. Now it has become cross-industry (indirect) and invisible. Therefore it is very difficult to anticipate the onslaught from an ‘invisible’ competitor. Result: Most of the time the victim is caught off-guard and in many cases, they just disappear, without even leaving a trace!

Has any company suffered this fate, because they did not pay heed to this new rule?

A host of companies have had to face the ignominy of having to loose their pre-eminent market leadership position by either getting bought out (Nokia) to file for bankruptcy (Kodak) or have face the ignominy of plunging valuation – Pebble (from $740 million to $40 million), Yahoo (from $ 44.6 billion to $4.8 billion) & Groupon (from $6 billion to $2.3 billion).

Has any company proactively embraced this belligerent strategy & thrived?

Facebook has! It has made this and more a part of every employees mandate.

How does FB ensure that this strategy is executed successfully?

FB decided to come out with a book, titled Facebook’s Little Red Book, which it gives to all its new employees – since 2012, the year that it hit its 1 billionth-user milestone. This booklet contains a compilation of company’s ideas & culture & expects its employees to live by it!

Let me give you a glimpse of guiding principles, which Facebook expects its employees to live by, as shared in the Little Red Book:

1. Facebook was not originally created to be a company. It was built to accomplish a social mission – to make the world more open and connected

2. Changing how people communicate will always change the world.
Greatness and comfort rarely co-exist

3. The quick shall inherit the earth: Fast is better than slow! Those who ship quickly can improve quickly. So the fast doesn’t just win the race. It gets a head start for the next one.

4. When you don’t realise what you can’t do, you can do some pretty cool stuff.

5. Remember people don’t use Facebook because they like us. They use it because they like their friends

6. We don’t build services to make money; we make money to build better services

7. If we don’t create the thing that kills Facebook, someone else will: ‘Embracing change’ isn’t enough. It has to be hardwired into who we are that even talking about it seems redundant. The Internet is not a friendly place. Things that don’t stay relevant don’t even get the luxury of leaving ruins. They disappear.

Want to protect your business from the fate of Nokia and Kodak and imbibe the proactive thinking of Facebook? If yes, then I would invite you to read my article published on Founding Fuel, titled, ‘Disrupt or destroy your business to make it stronger.’ This article is embellished with examples drawn from Amazon, Netflix so that you get a good idea on how these companies successfully disturbed / destroyed their own business to future proof it. Then you too can conceptualise a strategy to future proof your business!

 

 

—————-

About the Author:

rajesh-srivastava-insideiim

In this series, Rajesh Srivastava, Business Strategist and Visiting Faculty at IIM Indore gives you a regular dose of strategy case studies to help you think and keep you one step ahead as a professional as compared to your peers. Rajesh is an alumnus of IIM Bangalore and IIT Kanpur and has over 2 decades of experience in the FMCG industry. All previous Strategy with RS posts can be found here.


Rajesh Srivastava

Message Author


Message Author

Friends, do you know the new mantra for success?

Actively work towards killing your own business. Why this belligerent attitude towards your own creation?

Because of the changing face of competition.

Earlier ‘competition’ was direct and visible. Now it has become cross-industry (indirect) and invisible. Therefore it is very difficult to anticipate the onslaught from an ‘invisible’ competitor. Result: Most of the time the victim is caught off-guard and in many cases, they just disappear, without even leaving a trace!

Has any company suffered this fate, because they did not pay heed to this new rule?

A host of companies have had to face the ignominy of having to loose their pre-eminent market leadership position by either getting bought out (Nokia) to file for bankruptcy (Kodak) or have face the ignominy of plunging valuation – Pebble (from $740 million to $40 million), Yahoo (from $ 44.6 billion to $4.8 billion) & Groupon (from $6 billion to $2.3 billion).

Has any company proactively embraced this belligerent strategy & thrived?

Facebook has! It has made this and more a part of every employees mandate.

How does FB ensure that this strategy is executed successfully?

FB decided to come out with a book, titled Facebook’s Little Red Book, which it gives to all its new employees – since 2012, the year that it hit its 1 billionth-user milestone. This booklet contains a compilation of company’s ideas & culture & expects its employees to live by it!

Let me give you a glimpse of guiding principles, which Facebook expects its employees to live by, as shared in the Little Red Book:

1. Facebook was not originally created to be a company. It was built to accomplish a social mission – to make the world more open and connected

2. Changing how people communicate will always change the world.
Greatness and comfort rarely co-exist

3. The quick shall inherit the earth: Fast is better than slow! Those who ship quickly can improve quickly. So the fast doesn’t just win the race. It gets a head start for the next one.

4. When you don’t realise what you can’t do, you can do some pretty cool stuff.

5. Remember people don’t use Facebook because they like us. They use it because they like their friends

6. We don’t build services to make money; we make money to build better services

7. If we don’t create the thing that kills Facebook, someone else will: ‘Embracing change’ isn’t enough. It has to be hardwired into who we are that even talking about it seems redundant. The Internet is not a friendly place. Things that don’t stay relevant don’t even get the luxury of leaving ruins. They disappear.

Want to protect your business from the fate of Nokia and Kodak and imbibe the proactive thinking of Facebook? If yes, then I would invite you to read my article published on Founding Fuel, titled, ‘Disrupt or destroy your business to make it stronger.’ This article is embellished with examples drawn from Amazon, Netflix so that you get a good idea on how these companies successfully disturbed / destroyed their own business to future proof it. Then you too can conceptualise a strategy to future proof your business!

 

 

—————-

About the Author:

rajesh-srivastava-insideiim

In this series, Rajesh Srivastava, Business Strategist and Visiting Faculty at IIM Indore gives you a regular dose of strategy case studies to help you think and keep you one step ahead as a professional as compared to your peers. Rajesh is an alumnus of IIM Bangalore and IIT Kanpur and has over 2 decades of experience in the FMCG industry. All previous Strategy with RS posts can be found here.


Rajesh Srivastava

Message Author


Message Author

Friends, do you know the new mantra for success?

Actively work towards killing your own business. Why this belligerent attitude towards your own creation?

Because of the changing face of competition.

Earlier ‘competition’ was direct and visible. Now it has become cross-industry (indirect) and invisible. Therefore it is very difficult to anticipate the onslaught from an ‘invisible’ competitor. Result: Most of the time the victim is caught off-guard and in many cases, they just disappear, without even leaving a trace!

Has any company suffered this fate, because they did not pay heed to this new rule?

A host of companies have had to face the ignominy of having to loose their pre-eminent market leadership position by either getting bought out (Nokia) to file for bankruptcy (Kodak) or have face the ignominy of plunging valuation – Pebble (from $740 million to $40 million), Yahoo (from $ 44.6 billion to $4.8 billion) & Groupon (from $6 billion to $2.3 billion).

Has any company proactively embraced this belligerent strategy & thrived?

Facebook has! It has made this and more a part of every employees mandate.

How does FB ensure that this strategy is executed successfully?

FB decided to come out with a book, titled Facebook’s Little Red Book, which it gives to all its new employees – since 2012, the year that it hit its 1 billionth-user milestone. This booklet contains a compilation of company’s ideas & culture & expects its employees to live by it!

Let me give you a glimpse of guiding principles, which Facebook expects its employees to live by, as shared in the Little Red Book:

1. Facebook was not originally created to be a company. It was built to accomplish a social mission – to make the world more open and connected

2. Changing how people communicate will always change the world.
Greatness and comfort rarely co-exist

3. The quick shall inherit the earth: Fast is better than slow! Those who ship quickly can improve quickly. So the fast doesn’t just win the race. It gets a head start for the next one.

4. When you don’t realise what you can’t do, you can do some pretty cool stuff.

5. Remember people don’t use Facebook because they like us. They use it because they like their friends

6. We don’t build services to make money; we make money to build better services

7. If we don’t create the thing that kills Facebook, someone else will: ‘Embracing change’ isn’t enough. It has to be hardwired into who we are that even talking about it seems redundant. The Internet is not a friendly place. Things that don’t stay relevant don’t even get the luxury of leaving ruins. They disappear.

Want to protect your business from the fate of Nokia and Kodak and imbibe the proactive thinking of Facebook? If yes, then I would invite you to read my article published on Founding Fuel, titled, ‘Disrupt or destroy your business to make it stronger.’ This article is embellished with examples drawn from Amazon, Netflix so that you get a good idea on how these companies successfully disturbed / destroyed their own business to future proof it. Then you too can conceptualise a strategy to future proof your business!

 

 

—————-

About the Author:

rajesh-srivastava-insideiim

In this series, Rajesh Srivastava, Business Strategist and Visiting Faculty at IIM Indore gives you a regular dose of strategy case studies to help you think and keep you one step ahead as a professional as compared to your peers. Rajesh is an alumnus of IIM Bangalore and IIT Kanpur and has over 2 decades of experience in the FMCG industry. All previous Strategy with RS posts can be found here.


Rajesh Srivastava

Message Author


Message Author

Friends, do you know the new mantra for success?

Actively work towards killing your own business. Why this belligerent attitude towards your own creation?

Because of the changing face of competition.

Earlier ‘competition’ was direct and visible. Now it has become cross-industry (indirect) and invisible. Therefore it is very difficult to anticipate the onslaught from an ‘invisible’ competitor. Result: Most of the time the victim is caught off-guard and in many cases, they just disappear, without even leaving a trace!

Has any company suffered this fate, because they did not pay heed to this new rule?

A host of companies have had to face the ignominy of having to loose their pre-eminent market leadership position by either getting bought out (Nokia) to file for bankruptcy (Kodak) or have face the ignominy of plunging valuation – Pebble (from $740 million to $40 million), Yahoo (from $ 44.6 billion to $4.8 billion) & Groupon (from $6 billion to $2.3 billion).

Has any company proactively embraced this belligerent strategy & thrived?

Facebook has! It has made this and more a part of every employees mandate.

How does FB ensure that this strategy is executed successfully?

FB decided to come out with a book, titled Facebook’s Little Red Book, which it gives to all its new employees – since 2012, the year that it hit its 1 billionth-user milestone. This booklet contains a compilation of company’s ideas & culture & expects its employees to live by it!

Let me give you a glimpse of guiding principles, which Facebook expects its employees to live by, as shared in the Little Red Book:

1. Facebook was not originally created to be a company. It was built to accomplish a social mission – to make the world more open and connected

2. Changing how people communicate will always change the world.
Greatness and comfort rarely co-exist

3. The quick shall inherit the earth: Fast is better than slow! Those who ship quickly can improve quickly. So the fast doesn’t just win the race. It gets a head start for the next one.

4. When you don’t realise what you can’t do, you can do some pretty cool stuff.

5. Remember people don’t use Facebook because they like us. They use it because they like their friends

6. We don’t build services to make money; we make money to build better services

7. If we don’t create the thing that kills Facebook, someone else will: ‘Embracing change’ isn’t enough. It has to be hardwired into who we are that even talking about it seems redundant. The Internet is not a friendly place. Things that don’t stay relevant don’t even get the luxury of leaving ruins. They disappear.

Want to protect your business from the fate of Nokia and Kodak and imbibe the proactive thinking of Facebook? If yes, then I would invite you to read my article published on Founding Fuel, titled, ‘Disrupt or destroy your business to make it stronger.’ This article is embellished with examples drawn from Amazon, Netflix so that you get a good idea on how these companies successfully disturbed / destroyed their own business to future proof it. Then you too can conceptualise a strategy to future proof your business!

 

 

—————-

About the Author:

rajesh-srivastava-insideiim

In this series, Rajesh Srivastava, Business Strategist and Visiting Faculty at IIM Indore gives you a regular dose of strategy case studies to help you think and keep you one step ahead as a professional as compared to your peers. Rajesh is an alumnus of IIM Bangalore and IIT Kanpur and has over 2 decades of experience in the FMCG industry. All previous Strategy with RS posts can be found here.


Rajesh Srivastava

Message Author