Category Archives: Brands

Why does a company that started by selling books continue to disrupt so many industries they’re not first considered to be experts in? Amazon has evolved from being an online bookseller to becoming not only “the world’s marketplace” but one of the world’s largest providers of cloud services — creating an entirely new service offering that just a few years ago didn’t even exist. And, in the meantime, becoming a high-tech company that rivals the ones expected to innovate in this area.

That may be the primary reason Amazon has been able to take-off in new markets. First, its CEO, Jeff Bezos is not concerned with short-term profits. His vision is what more CEOs need to reflect on: “We like to invent and do new things, and I know for sure that long term orientation is essential for invention because you’re going to have a lot of failures along the way.” Too many American companies seek just short-term profit, and don’t focus on more than 3 or 4 quarters. If Kindle, Amazon Web Services and Amazon Prime were required to show profits in their first 3 or 4 quarters, they would have never even gone to market.

True disruption comes from those that jump into a market not worried about cost. They usually go in with the lowest cost and quality offering and build from there. Ultimately, becoming a market leader means that you have to continue to innovate and disrupt, or you become less a disruptor and just a profit-making machine. Consider the fate of Polaroid, Atari, RIM and Digital Equipment Corporation: all were once disruptors in their respective industries. Once they reached the top, they stumbled. They stumbled because they stopped innovating and disrupting. Amazon continues to discover new markets, innovate products and services, and is restless once they begin to make inroads into a new market. Apple and Google are the obvious candidates for finding it difficult to create market breakthroughs while servicing the markets they currently dominate.

Disruption is based on creating new and valuable products and services in an uncertain market. Once a company gets too comfortable in their market, they will eventually find it difficult to innovate and disrupt. The challenge is to foster a culture that values creativity and innovation and offers a process that encourages its people to ask questions, uncover new possibilities, and explore without being driven by profit only. Amazon has shown it’s willing and able to enter any market it thinks it can add value to. And then it works from within and continually innovates and disrupts. Companies like Apple, Google and even Microsoft should never forget what happened to the companies that lost their hunger for innovation. Maybe they should listen to Jeff a little more.

Ikea announced today that they will partner with Marriott to create a new budget “hotel brand” based on their prefabricated furniture model. The hotels won’t include Ikea furniture, but instead will be built based on new construction methods that stress lower-cost materials. Prefabricated hotel rooms will be built in a central location and placed wherever needs arise. This is a similar model to what some retailers are doing with popup stores in areas that swarm with large groups of people for specific events. Kind of like what Apple did at SXSW during its iPad launch — quickly create a popup store to sell items where people are gathered, and then take the store down after the event is over.

Popup hotels could be quickly assembled in areas where events bring large amounts of people together. Even here in Austin right now, it’s virtually impossible to get a hotel room, and if you do, it’s easily $400 a night. Popup hotels could offer some relief to the need for rooms, and will attract a younger, more budget-conscious traveler.

Ikea and Marriott will launch their first popup hotel in Milan this year.

Starting yesterday, if you have an Amex card, you can now tweet to buy products. Amex has teamed with Twitter to launch the first “pay by tweet” service. Amex cardholders simply send a short message with a hashtag to make a purchase. Out of the gate, Amex offered a $25 American Express gift card for only $15 if cardholders would register their card and then send a tweet with the #BuyAmexGiftCard25 hashtag. It took me just two minutes to register my card, and then seconds after sending the tweet, @AmexSync tweeted me to confirm with a follow-up tweet, and then my gift card was purchased.

Coming next, synced cardholders will be able to accept offers from merchants by tweeting the hashtag in the offer. If I get an offer from Target that digital cameras are on sale, I could simply tweet the hashtag #BuyDigitalCameraTarget, for example.

The big question is — will consumers feel comfortable making purchases this way? Will they be more inclined to make “smaller” purchases using “pay by tweet”? What are the security issues? It’s good for Twitter to team with Amex first, since their trustworthiness is high with consumers, but are their cardholders early adopter types?

For me, the biggest part of any Super Bowl is usually the commercials. I remember the year of Pets.com, along with a lot of others, where the bigger the ad and the investment, the bigger the impact. Of course, pets.com died a quick death after that, as the bubble burst for everyone. This year, the advertisers expect you to be multi-tasking the game, with your head in your mobile device or laptop just as often as you’re staring at the larger screen.

This year, advertisers are taking quite a different tact in their Super Bowl ads. Not only are they releasing ads ahead of the game on YouTube and client web sites, but they’re integrating social media into the campaign. According to Ad Age, Audi of America believes that “chatter  about Super Bowl ads begins to fade between 24 and 48 hours after the game is over.” Therefore, if you release the ad early, you’ll get more bang for your buck – a longer tail of discussion.

I’m not so sure. I prefer being surprised by the ad during the Super Bowl. I think the surprise maximizes the impact.

Here’s a list of some of the ad buys, their release dates, and their integration into social media (courtesy of Ad Age):

 - Anheuser-Busch got a twitter account for the first time on January 28. One of their ads, with the Clydesdales, will feature a foal. A-B has been soliciting names for the foal on Twitter.
- Audi posted three versions of its potential ad, each with a different ending, and let fans vote on which version they’d like to see run in the Super Bowl. The final spot appeared on YouTube on Jan. 27.
- Kia and Hyundai both pre-released their ads this week as well. Although I’m trying to avoid pre-released ads, I saw a space panda in a clip for Kia’s and I’ve since watched it. It’s damned cute.
- Axe pre-released their ad on Jan 28 and is running a contest (online of course) for some lucky group to fly into space.
- Coca-Cola released their ad on Jan 28. The ad features a contest, or game. In the ad, three teams are racing to get a Coke. The ad ends on a cliffhanger and viewers vote online for their favorite team. The ad featuring the “winning” team will air immediately after the Super Bowl.
- As usual, Dorito’s ran a contest for viewers to submit ads, with the winning ad appearing in the big game.
- Go Daddy has one ad that they’re keeping a secret and one that was released on Jan 25.
- Lincoln, of all brands, has an ad that incorporates ideas solicited by Jimmy Fallon via Twitter.
- Oreo, celebrating their 100th anniversary, is releasing an ad that shows fans of cookie vs filling. The neat thing (other than being a 100-year old brand)? They’re including a campaign on Instagram as well.
- Pepsi has been asking customers to submit photos and those will be used in a spot. Additionally, you’ll be able to sign up online to get a free soda.
- RIM, er, Blackberry has their first ad. According to Ad Age, “A social-media campaign to run alongside commercial will include promoted posts on Twitter and sponsored stories on Facebook.”
- Toyota is running an ad with Kaley Cuoco as a genie. The ad features a photo of a consumer chosen from an Instagram and Twitter campaign using the hash tag #wishgranted.
- Disney Pictures is running a spot highlighting the new Oz: The Great and Powerful film. After the commercial airs, one of the witches from the film will overtake the Disney web site.
- Wonderful Pistachios is running an ad featuring Psy. Fans can upload a photo of them getting “crackin’ Gangnam Style” with pistachios and potentially win a 12-month lease of a new Mercedes Benz.

It’s been a banner year for stuff. I admit, I like playing with stuff and testing, tweaking, fiddling, and generally exploring new devices and gadgets. Unfortunately, I don’t get free stuff to test out — when I “adopt” I am all in. Thank goodness I’m a Silver rewards member at Best Buy — I get the 45-day return option. For the most part, I end up stacking a lot of unused gadgets in the corner of my home office, however, there are a few things that bubble up and become indispensable. So as we close out 2012, I thought I’d itemize some of the stuff I got this year. Each one of these items, except one, landed a secure, comfy spot in my precious man-bag. Can you guess which item got tossed out?

iPhone 5

In September of this year, Apple released iPhone 5 — a complete overhaul of its flagship smartphone.

Pros: iPhone 5 was a big release (literally) — sporting a longer, larger screen and a new, zippy A6 processor. Add to that a top-to-bottom redesign resulting in the slimmest, lightest iPhone yet.

Cons: The new Lightning connector caused a kerfuffle with all the 32-pin accessories and cables I already had. And I won’t mention Maps…, yeah, no need to mention that.

iPad mini

The first new “product” released under Tim Cook without the approval of Steve Jobs, iPad mini is a lighter, smaller cousin to iPad.

Pros: Just the right size: fits comfortably in the palm, and can still maneuver the keyboard. Much better with the “lean-back” experience while reading, surfing and watching videos. All the almost 300,000 iPad apps work on mini.

Cons: No retina. Big mistake, Apple. Pricey. There are several tablet options with sharper screens at lower prices.

Microsoft Surface RT

Microsoft started out 2012 with a bang, moving aggressively into hardware. Their first flagship release is a complete overhaul of “the tablet experience” combining the best of a laptop with the best of a tablet in one form factor. If you are into productivity with a tablet, go Surface.

Pros: The new Metro interface is leaps ahead of anything Apple or Samsung have come up with. An easy-to-use UI that screams to be touched. The Surface I got was zippy, responsive, and easy to navigate. I used it to present at conferences, create and edit Office docs and watch Hulu and Netflix movies.

Cons: Not enough apps. The Windows Store is like a Soviet Grocery store. There are two keyboard options: dumb and dumber. And you need a keyboard and a flat surface (literally). Not a real “lean-back” consume content type of tablet.

Leica X2 Digital Camera

Leica moved aggressively into the prosumer digital market with the release of the X2 digital camera.

Pros: With a 16 megapixel resolution and a Zeiss lens, this camera takes digital to the next level. Although it comes with a fixed 24mm lens, the shots are spectacular (and no need to worry about zooming). A stunning, 2.7-inch LCD display helps you to capture just the right composition for your shots.

Cons: Pricey at ~$2000.00. However, if you’re considering this camera, you probably already have gotten over sticker shock. The fixed lens means you’re kinda “stuck” if you find yourself needing a closeup or wide angle shot.

HTC Windows Phone 8X

HTC has historically been an Android specific phone maker. With the 8X, HTC has landed with a big statement to the Lumia: I’m gonna be lighter, thinner, and more powerful than you! This phone is the rockingest smartphone release of 2012.

Pros: Fast processor, great LTE speeds, hardly any bloatware and a nice comfy grip make this phone (available in several colors) a very close competitor to iPhone. I loved how the HTC would read me my texts while in my car. Say goodbye to Siri!

Cons: The power button at the top is too flush, making it a bit hard to turn off/on quickly. Call quality is not as great as iPhone.

Take a guess at which one got tossed out in the comments below. As for 2013: I look forward to acquiring a lot more stuff, but in my opinion 2012 was a banner year for us gadget freaks! Happy New Year!