Tuesday, 7 April 2015

HOW YOU ARE GOING TO DO IT

The Breitling Navitimer costs $11,200.00 as at 2013.
This is a premium priced merchandise and it comes with a 5 year guarantee. In the horology market it occupies the highest price point.

The BMW is a premium priced vehicle that occupies the high end portion of the automobile marketplace in terms of its price and its target market: luxury.
The Toyota Corola, Hyundai Elantra are cheap cars for the masses.

The market competition formula for the Breitling and the BMW is 'we make expensive, extremely high quality stuff for the luxury customer and that of the Toyota company is 'we are democratising vehicle ownership for all'

These two competition strategies seem to work better when they are kept disparate e.g. the BMW tried to dilute its premium strategy by acquiring the Rover and marketing it for the middle class but it's genetic structure of creating premium products and premium services made sure the enterprise failed and Rover was divested.

On the other hand, the Toyota company acquired Lexus and lo and behold the Lexus became an outsider to the premium motor vehicles category which it had formerly inhabited( Audi, BMW & MERCEDES, ROLLS ROYCE, ASTON MARTIN)

The question for you is where does your law firm fit here? Do you produce your services cheaper than other law firms using a very lean structure (a massive competitive advantage) or do you produce a premium service (read service that has MNCs giving a blank cheque) for which its value commands a premium price (read Ex.Pen.Sive like Abhu Dhabi Money)?

This is about how you want to roll in the marketplace and the kind of investments you have to make. For example the BMW company has the FIZ research programme which has about 8,900 engineers coming up with the new standards of luxury and perfection. You will need a legal equivalent of the FIZ to justify your pricing.

To lock it down, whatever you pick you must give it what it needs, ergo following it to it's logical conclusion. As Dominique Strauss Kahn rightly pointed out, if we do not implement the solution to its logical conclusion we might well as not do anything.

Or think of it this way, stretching a clothes line from one end to the other means one side has to be secured firmly and the other end must stretch out and be hooked or tied down at the other end. If the second part is not hooked or tied down firmly, for whatever reason (lack of resources, laziness, wrong timing) there is no clothes line and you can hang no clothes on it.
Q.E.D.

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