MBA Geek

One advantage that the Internet brings to Business is the ability to focus exclusively on a particular niche. The reason behind this thinking is that the Internet allows you to scale your clientèle to a global level so reducing the focus of your business to a small segment still remains commercially viable.

So, for example, an online jeweler can target customers who are interested in titanium or tungsten rings, omitting the standard gold or diamond segments. Or you may seek treatment information on Plantar Fasciitis from a website that deals exclusively with footwear and foot conditions, rather than visiting a pharmacy who will not have detailed information about your condition.

It’s all pretty interesting when you think about the scope it gives potential retailers in the area. It allows organisations and individuals to become experts in a particular subject-matter rather than trying to generalise to increase their sales.

I came home today to find an some interesting advertising material from one of the leading car insurers in the UK. What caught my attention (which was probably as was intended) was the fact that ther advertising material had some interesting personal information used all over it. For example, a photo of a car in the marketing brochure had the same number plate as my car. The road sign next to what was supposed to be the street where I lived actually had our real street name on it. The photo on the outside had a set of keys with a tag with my name on them.

The interesting thing wasn’t quite so much the auto insurance, but the way it was presented. The personal information grabbed my attention and made sure I gave the brochure a second look. Interesting how marketing companies get more clever.

Woolworths has announced that it’s starting it’s closing down sale in a bid by tthe administrators to try and raise as many funds as possible for creditors as possible. One year shy of it’s centenary there doesn’t seem to be much hope for a retailer who’s name has become synonmous with the British high street. It’s a great shame, but a lesson for all that without continual reinvestment in a brand, failure is the only option.

I blame the demise on a 2 factor theory. The biggest problem in my eyes was the attempt to cram everything under one roof. Consumers nowadays are much more picky and prefer going to a specialist to ensure quality in their purchase. This has let to Woolworth’s market share being eroded by a multitude of specialist stores which have a more defined identity and segmentation strategy. The other factor, obviously, was the economic climate; credit is harder to achieve and the pre-Xmas pressure was just too much.

It’s the end of an era for the UK High Street, but how many will mourn Woolworth’s demise?

I came across a really interesting article in FT talking about offshore jurisdictions and the pressure they are under because of the worsoning economic climate. I must say it is of personal interest as I’m based in the Isle of Man, but it’s also interesting to see how major economies around the world have started trying to look at their finances and trying to plug leaks. The article calls the UK’s threats towards the Isle of Man as ..

a sign of the growing hostility to the tiny states and islands around the world that harbour an estimated $6,000bn (£3,895bn, €4,725bn) of offshore assets. After months of financial crisis and banking scandals that rocked Liechtenstein and Switzerland, the world’s most powerful countries have lost patience.

An interesting part of the article is a reference to Delaware, a US state with much less transparency than most offshore jurisdictions:

Delaware company agents advertise the state as allowing even greater secrecy than offshore tax havens. “The Delaware LLC provides the anonymity that most international jurisdictions do not offer,” claims one agent website quoted by the task force.

So, for example, if a company selling Wilmington NC real estate was incorporated in Delaware, it has huge tax reporting flexibility without having to go offshore.

If you find this interesting you can read the complete article: Harbours of Resentment