Imagine you have a successful business with a unique product that is highly regarded by a large and valuable niche market segment. Happy days. Then you succumb to hubris. You decide to ignore the fundamentals of your business and the things that gave your business its unique competitive advantage, and you completely change your product offering. People stop buying, and as your business fails, instead of lamenting your failure to understand why people once used to buy from you, you go public and blame your customers for failing to appreciate you.
This could never happen, right? Reflect upon the Australian Democrats. Once had the greatest tag line of any political product in Australia: "keep the bastards honest". Had a loyal following of "buyers" who were scarred by the politics of 1975.
To be sure the market place has changed over the years, and the events of 1975 grew dim in the minds of the "customer". But then the Dems decided to change their offering from one of "keeping the bastards honest" to one of a platform of their own alternative policies. In so doing, they confused their buyers and took away their reason to buy. "Buyers" wanting green or left wing policies could buy "Greens" or "Labor". And those wanting conservative policies could buy "Liberals". So why "buy Democrats" if they are only offering policies of one persuasion or another offered more or less by competitors.
The Democrats were like tyres for the motor car of politics. Drive any car you like, but if you want to drive more safely, then put Dems on your wheels. But then they thought the world needed another kind of car. You don't see a "Bridgestone" car. You don't see Microsoft or Intel PC's. Etc.
Instead of trying to "stay relevant" by changing their product, the Dems should have found ways of reminding people why their product was so valuable. The Democrats once had a unique product with no head-on competition. Then they decided to go head to head with the other parties. But the other parties had much more clearly defined competing value propositions (notably the Greens). The death of the Dems was always going to be just a matter of time after they messed with their product.
Onlooking small business proprietors should ignore the lame and uninsightful valedictory dross that they may have heard last week as the Democrats fizzled out once and for all, and note what happens when you ignore the fundamentals driving your business.
The Cash Flow Ninjas
