Cut the Emotional Attractions

In competing can use emotional appeal or otherwise rational appeal. If other companies use emotional appeal then we can use rational appeal. "When companies think of profit against the emotional appeal of the industry, the company will often find new market space". Kim and Mauborgne write. Eliminating excess emotional appeal will create a simple business model that can provide a cheaper and more efficient in order to increase of value for consumers.
Quick Beauty (QB) House is a Japanese barber who cut the emotional power of a rational appeal. In Japan the time used to cut hair 1 hour. This is because the haircut is a ritual process. And rubbed shoulders in a massage, a hot towel is given, provide tea and coffee and artisan barbershop use ritual to cut hair, including hair and skin care specials, such as dry hair and shave his beard. So the time spent cutting hair just a little bit of the whole set of rituals haircut.The time used for the whole series is 1 hour so as to make a long queue for other potential customers. Costs range from 3,000 yen haircut to 5000 yen ($ 27 to $ 45).

QB House cut the emotional appeal of a rational appeal to realize that within 1 hour of professionals is a very valuable and they do not want just spent 1 hour for a haircut only. Rub and massage the shoulders, hot towels, tea and coffee and a ritual to cut hair removed including hair washing and drying hair.Thus the space required for a haircut becomes smaller than any trimmer. QB House focus only on cutting hair only by creating an air wash system (water wash).Air wash system uses high hose that can be lowered to suck hair was trimmed. The system is much faster turn time barber from 1 hour to 10 minutes only. Because of market professionals Whose aim is the cleanliness maintained well by introducing sanitation facilities in every seat and given a new set of towels and combs. In addition there is a shop outside lights to show when there is an empty spot for a haircut so that prospective customers can ensure your time and avoid long queues. By cutting the emotional appeal of a rational appeal the QB House can put just 1000 yen rates even one-fifth or one-third the price of traditional haircut. In this way the QB House, in 1 hour is not just one person that crop, but 6 people, so that the total income of QB House is higher than a traditional barber.

Qb House which was founded by Mr. Kuniyoshi Konishi in 1996 in Tokyo and is growing rapidly to 200 points in 2003 and to 300 places a branch in Japan in 2007. The number of visitors increased from 56,000 in 1996 to 3.5 million per year in 2002. QB House expands into Singapore, and Hong Kong Malaysia and target to open 1000 outlets in Asia before 2013. This can happen because the QB House uses a strategy to cut the emotional appeal of a rational appeal.

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Creating the Markets Without Limits

According to Kim and Mauborgne, to create a competitive market, in addition to looking at alternative industries, can also be done by looking across strategic groups within the industry. Strategic groups in the industry is a group of companies in an industry that pursue the same strategy. The group warned in a hierarchy based on price and performance of the rough. Any price spikes growing niche to also improve several dimensions of performance. most companies continue to improve the competitive position within the group strategy and trying to outdo each other.
To create a market without competition must traverse a strategic group to understand the factors that determine consumer decision because of performance and because of the price. One company that is able to take advantage of opportunities that are Curve, women's fitness company that was founded in Texas By Gary Heavin the franchise since 1995. Curve see the fitness industry that target men and women who offer a wide selection of sports and exercise are generally full of luxury in urban locations. Trendy building, aerobic machines and weight training are complete, drinking bar, swimming pool, spa, instructors, locker room complete with showers and saunas, because the goal is to spend social time and exercise.

With tuition $ 100 per month, which is not cheap so its market is only 12%. Why women choose a luxurious place training programs and complete this? The answer is that if the consumer is at home there are some reasons not to exercise and difficult exercise with discipline, except those who are enthusiastic and committed. Collectively exercise more motivated and enthusiastic than exercise alone. While other groups are strategic exercise program at home with the help of books, magazines and training videos. Why are women choosing home exercise program? The answer is because the cost-effective home exercise program with the privacy and time awake.
Curve look at both advantages both strategic groups and then exploit the advantages both these groups.Curve created a workout that can motivate and create enthusiasm for women, in an atmosphere that can talk to each other at reasonable cost and of privacy maintained. So what do Curve is to eliminate and reduce all aspects of the health club is not so attract women in general, are of special machines, food, spa, swimming pool, and even a dressing room which was then replaced with a switch that only veiled by a curtain.The machines are arranged circular which allows consumers to communicate with each other. QuickFit machine with unnecessary set-set again, safe, easy to use and not intimidating. Just a little mirror on the wall and there is no man who looked so privacy is maintained. In just 30 minutes the whole exercise can be resolved. The fee is quite cheap, only $ 30 per month. The motto of the Curve "is the price of a cup of coffee per day, you can achieve wellness through the grace of a good sport".Curve finally grown rapidly and has 2 million customers and over 6000 and is in a location with revenues exceeding $ 1 million. Rat-average every four hours there is a curve that opened somewhere in the world.

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Creating the Market Coverage

The second core strategy elements is scope of product / market. This element is where companies compete, both consumer sector, community, industry, geographic region and segment product.Definition coverage about company products / markets can be a source of business innovation concept if quite different from the traditional competitors. For example, Amazon.com, commanded and organized by Jeff Bezos , who was originally just a bookstore. Why is he named his company Amazon.com? because "Amazon River is the largest river in the world". said Jeff Bezos. How to stream Nill? Nill River is the longest river in the world. When compared with the volume of water Amazon River is the only tributary of the Amazon. The Amazon contains 20% of the world's fresh water, so that Jeff Bezos has a desire that his company would become a company that controlled the market 20% of the world market. Amazon.com opening E-commerce site it in July 1995, starting from the bookstore and then extended to the compact disk (CD) and then to the auction and now thousands of different products and different merchants. In 1996 to sell 15.7 million dollars and jumped to 600 million dollars in 1998. Amazon.com reported that on 1 November to 23 December 2002, consumers who order all over the world there are 56 million items so as to be the best online store in 2002 Yahoo magazine. Now Amazon.com is a wal-mart on the internet. The key question is whether the company allows us to provide a total solution value is closer to the needs of our customers? Can we improve profitability or market share by increasing market coverage? Are there any types of consumers that are generally ignored by industrial companies that we in?

Elements of the third core strategy is the basis of differentiation. This element is how companies compete, especially how firms compete differently.
Dell Computer does not sell computers through distributors, directly to consumers but causing Dell Computer uphill.

Competitors, Compaq, as it is the market leader in PC sales, cut prices to compete with Dell. The results Dell Computer suffered a loss of $ 65 million in the first six months, causing Dell nearly bankrupt. Finally Dell dell perform different strategies with Compaq, which sells computers via the Internet or E-Commerce. Of the nearly bankrupt, in 1999 Dell finally able to sell $ 1.7 million per day through its e-commerce site. Shares of Dell rose 2000% in the past two years and finally Dell became the largest seller of PCs in the world.
Bloomberg similarly competing in a different way with competitors, Reuters and Telerate, the market leader at the time. The market leader in this industry focuses the buyer and manager of information technology, who value standardized system that makes them easier to do their jobs. Bloomberg actually see something different,with Traders targeting and Analytics, information technology the managers instead. Direct, traders and analysts is, not IT managers. The facilities provided in accordance with the requirements Bloomberg traders and analysts, which can be easily read and understand them for using financial terms that are not familiar with their ears.

Finally,less than 10 years of Bloomberg managed to become the largest provider of business information and the most profitable in the world . The key question is how the competitors try to differentiate themselves in our industry? Are there other dimensions that we can dig deeper? How can we improve in several dimensions of differentiation it? Have we cleverly seeking differentiation opportunities in any business model?Good luck and good luck in this difficult era.

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Creating the Vision, Mission, and Market Coverage

According to Gary Hamel, to be a revolutionary industry, or to create new rules of the game in an era of difficult or era of revolution, we must create the business concept and its components. The first component of this business concept is the core strategy (Core Strategy) which is the core of how a company chooses to compete. The elements of the strategy include the core vision and mission of the business, the scope of the product / market differentiation and bases. Business vision is what the company wants that are ideal and mission of the business is operationalisation business vision. The vision and mission of the business will lead to a statement of values, will the strategy, objectives and goals correct as well as all performance targets. Vision and business mission is to provide direction and a set of criteria to provide direction and a set of criteria to measure progress.
Intel has a vision of continually pushing the boundaries of innovation in order to the make life more passionate people, more fulfilling, and easier to manage.

Intel's strong commitment to moving technology forward has made the transformation of the world by leaps and bounce.Intel is a company that is always in motion, burning, into an industry never breaks. Intel inspire partners to develop innovative products and services, driving the industry to support and can provide a solution with a better settlement by providing benefits Collectively bigger and faster.

 Bill Gates at Microsoft beginning visionary "A computer on every desk in every home, running Microsoft software." By cause and effect after Bill Gates created the MS-DOS, it makes the Windows operating system as well as home use window (window) which Bill Gates has become the richest entrepreneur in the world.It is not true that putting PCs in offices and in homes around the worldcan provide a solution with a better settlement by providing benefits Collectively bigger and faster, but Bill Gates had a vision to see what is complicated on and have the desire to turn this vision into reality. The mission of Microsoft is helping people to achieve their potential. That is the reason why Microsoft donated software, hardware, and and for a variety of programs throughout the world as a campaign Realize Your Potential.

The mission of FedEx is generating high financial income for shareholders by providing supply chain, transportation, business and related information services with high added value through focused operating company. Customer needs met in the highest quality conformance style for each market segment will strive served.FedEx float award in quality relationships with employees, partners and suppliers. Safety will be under-united in its operations.Activities company will deliver to the highest ethics and standards professional.

The key question is whether the vision and mission of our business is different from other companies? Good luck and I hope your company soar. Something unimaginable for yourself.

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Business Concept To Blow Up The Company

According to Cary Hamel, to be revolutionary industrial, or to create new rules of the game in an era of difficult or revolution era, we have to create a business concept and its components. A business concept in the era of tough consists of four main components: the core strategy (Core Strategy), strategic resources (Strategic Resource), Intermediary Customer (Costumer Interface) and value network (Value Network). The four main components are linked by three bridge components.Among the components of the core strategies and related strategic resource by activation configuration components (Configuration of Activities). Components of benefit to the customer (Customer Benefit) linking the core strategy and brokerage customers.while the components of the limits of the (Company Boundaries) as a bridge between resource strategy with value network. In a difficult business model in the age of the covered four critical elements comprising the profit potential of efficiency, uniqueness, compatibility and driving profits.The first component of this business concept is the core strategy (Core Strategy) which is the core of how a company chooses to compete. The elements of the strategy include the core vision and business mission. The vision and mission of the business will lead to the inclusion of value, will the strategy, goals and objectives are great, many and brave and all performance targets. Vision and business mission is to provide direction and a set of criteria to measure progress.The vision is based on spiritual capital proved to be catapulted the company. Pharmaceutical brands provide medicines for the needy that move the research to work optimally.

The mission of Google is to organize the world's information and make it accessible and used universally. The mission of the rich spiritual capital can make Google ad sales explode. Of capital of 0.1 million U.S. dollars in 1998, exploded in March 2007 with revenues of 3.66 billion U.S. dollars.

                                     
Meanwhile, Yahoo is the mission of connecting people with great desire, their communities and world's knowledge. The company was founded by Jerry Yang and David Filo with relatively small capital in 1994.Now company has exploded with revenue 6.420 billion U.S. dollars by the end of 2006.

The second component of a business in an era of difficult concepts are strategic resources (Strategic Resources) consisting of core competencies, strategic assets and core processes. Resource strategy is specific and unique, can dramatically alter a source of resource competition business concept innovation. Competence is some thing the company's excellence and be able to provide the unique skills and abilities. For example, Amazon.com which has a One-Click patent technology and have a very strong brand that is among the quality of its core competencies. But the real core competency of Amazon.com is the experience created for customers, which is comfortable doing business with Amazon.com. why comfortable? Because it is easy (One-Click), makes people perceive that they are doing business, selling and buying products that have a known brand.

The third component of intermediate customers (Costumer Interface) has four element, namely support and fulfillment, in-depth information and pricing structure dynamics.Harley Davidson is a company that is able to build a real relationship with its customers.

While all four components of the business model is the network that surrounds the company values ​​that reinforce and complement the company's resources. Cisco and Nokia with their supplier networks as a way to reduce working capital and increase flexibility dramatically.

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SQ for Business Foundation

According to Danah Zohar and Ian Marshall, spiritual intelligence (SQ) is the intelligence we use to embrace the meaning, value, purpose of our deepest and highest motivation.Spiritual intelligence is intelligence that brings truth, goodness, beauty, justice, and love in life.Corporate leaders are expected to use spiritual intelligence to build spiritual capital (Spiritual Capital/SC) in his company. Spiritual-based company always puts the vision, mission and strategy in the context of the meaning and value of a broader and ever introspection that ultimately will improve the quality of life.Spiritual-based company saw the business as a broader human goals and is part of the service of God, feel responsible to society, earth, and life itself as a service to God or worship.Spiritual capital-based company is a company that cares, celebrating diversity, characterless, flexible and proactive and try to give a positive response for any bad situation.Cooperative Bank in the UK, which is always to invest in based ethics, it is able to make deposit customers 5-fold and contribute 15-18% profit.

in Starbucks, the executives found a great social responsibility to schools, clinics and flexible pricing cause employees like working at the company and each additional 1% for employees with an additional annual profit of 100,000 U.S. dollars.

 Gramen bank is a bank for the poor people of its founder, Muhammad Yunus, Nobel gained."If we find one single step that would allow Overcome the poor their poverty, are getting credit.Money is power.I have proven that the credit will be accepted as fellow human beings rights to bring in a system that allows each JV can access credit guarantee good return, I can give you something guarantee that poverty will not end long, "said Muhammad Yunus.Instead "the poor spiritual capital of the Company as a monster that ate itself," says Danah Zohar and Ian Marshall in his book, Spiritual Capital.

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Business strategies and functions

A business strategy typically is a document that clearly articulate directions business will pursue and the steps needed to achieve their goals. In a standard business plan, business strategy results from goals established to support another mission of the business. A typical business strategy developed in three steps: analysis, integration and implementation.In the analysis phase of business strategy development, one of the few methods used to analyze the enterprise market, resources, constraints and for successful certain advantages. The purpose of strategic analysis is to identify what the business wants to accomplish, that power can bring to goal and weaknesses that need to be addressed before integration and implementation. Strategic assessment methodologies may include evaluating business environment, gaming various competitive scenarios, determining what competitors market forces are working  and assessment, among others.Business strategy, sometimes called competitive strategy or any strategy is determined by six dimensions, four of which first investigated the business and the importance of the element. While two other elements showed business presence in a system related to another business entity.A business strategy contain a specification of a determining factor of:1. The product is marketed as a tool to compete in a business.A business is limited by the results of the offer and the options will not be offered to market the product, as well as efforts to provide or not provide a product in a competitive business from an entity that binds.2. The level of investment is happening, where it involves:Investing for grow the Investment to maintain a favorable position Obtaining fresh funds through the minimization of investment Obtaining money back as possible from the existing asset if done liquidation or withdrawal of capital are included.3. Functional strategies required in the competition area.This includes specific steps to compete include:a. Product line strategy. Strategic positioning. Pricing strategy. Distribution strategies. Manufacturing strategy. Logistics strategy4. Strategy in terms of the underlying asset or skill acquisition sustainable competitive advantage (Sustainable Competitive Advantage [SCA]).5. Allocation of resources into all business units.These resources both financial and non-financial, such as factories, equipment, manpower both internally and externally company.6. Development of synergies in business effectiveness as a means of value creation that supports the ability to complete.The six dimensions of these strategies can be combined into 3 important part as follows:
 1.Investment decisions marketed products that includes product-market strategy of the business environment, the intensity of investment (money), and establish the source of a variety of businesses
 2.Strategic measures of functional areas. 
3.The basis for sustainable competitive advantage to compete in the market, it includes the assets, skills, and proper synergy of the area functional strategies.

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