Sunday, May 11, 2008
Competing for the Future
I've been meaning to do more posts on books I like. This is one.
It is not actually a marketing book. 'Competing for the Future' is about strategy - how companies need to focus more on building core competences for the future.
They cite many examples of companies that have done a good job on this, as well as others that have not.
One company that under-invested in the late 1980's was Porsche. While they continued to raise prices, their engineering skills fell behind those of their Japanese competitors. By the early 1990's, sports cars such as the Nissan 300ZX, Honda NSX and Toyota Supra were considerably cheaper than the Porsche 911 and were often considered superior in performance too.
Consumers realised that the Porsche brand was not backed up by a competence-based performance advantage.
The result? US Porsche sales plummeted from 30,741 in 1986 to just 3,728 in 1993.
Definitely worth a read.