Category: Management
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The Innovator’s Dilemma – one of the most insightful works I love
The Innovator’s Dilemma is a concept popularised by Harvard Business School professor Clayton Christensen. The dilemma refers to the challenges that established companies face when they have to decide between focusing on improving their existing products and services, which are often profitable, or investing in disruptive innovations that may have uncertain returns and could potentially…
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Political resources and competitive advantage
That political influence can be a boon to business performance is almost stupidly obvious. Trump’s election saw his close ally Elon Musk enjoy a boost to the valuation of his companies. Even back in the Suharto era, the import of cloves was regulated and hence allowed the formation of monopolies trading the spice. The resource-based…
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The evolution of marketing
The philosophy behind marketing has been evolving over time, adapting to the surrounding economic and technological structure. Of course, some industries will remain laggards, while others will be more advanced in their progression. This is a general guide as to how marketing has changed. First Era: Product Focused “Build it and they shall come.” In…
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On ESG: Stakeholder theory and why it is flawed
Friedman’s Shareholder Theory Milton Friedman’s Shareholder Theory asserts that the primary responsibility of a business is to maximise profits for its shareholders. Friedman argued that businesses are essentially tools of their owners (the shareholders) and should focus exclusively on generating the highest possible returns, provided they operate within the bounds of law and ethical norms.…
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Hacking productivity: Using collectible experiences as a marketing tool
Have you ever dreamed of staying in an ice hotel, or perhaps sampling exotic delicacies like balut or Casu Marzu? While these experiences might not be on everyone’s bucket list, there’s a fascinating reason why they captivate so many people. Keinan and Kivetz (2011) argue that consumers often approach unique experiences as collectibles, much like…
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When to fire your customers: The Pyramid
The Customer Pyramid Explained The Customer Pyramid (Zeithaml, Rust & Lemon, 2001) is divided into four tiers: Platinum, Gold, Iron, and Lead (though we will focus on the top three tiers and the Lead equivalent). Each tier represents a different level of profitability and customer value. Maximising Profit Margins for the Top Tiers For customers…
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What makes a good marketer?
Too often, marketing is framed as the art of getting people to buy shit they don’t need – promoting consumerism and materialism. They do this with a mix of slick charm and lies about the efficacy of their products. While there are dishonest, conniving salesmen trying to pawn off inferior products on unsuspecting customers, these…
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The efficient labour market hypothesis – on passion
“Love your job and never work a day in your life.“ It’s a great platitude to work for a passion. Unfortunately, unless you have a niche interest, following your passion is unlikely to result in financial upside. The depressed pay of “socially-helpful” jobs A large number of individuals are drawn to do good, or pursue…