Friday, April 1, 2011

What is the life-blood of your organization?


I ask this question because at times businesses you will try to do anything in order to survive. While survival is key to any business, doing activities that take you away from your core message will hurt your business in the long-term.

Let me give you an example. In 2002 Volkswagen introduced a luxury car more expensive than some of its upscale Audi models, the Phaeton. In 2004 the U.S. market sales were only 1,433 in 2005 there were just 820 sold, which lead Volkswagen to announce that sales in the American market would end after the 2006 model year. “The Phaeton proved to be what the automaker hoped it would be----the 'Best'--- but amidst its perfection it has somewhat brought a dark cloud over Volkswagen.” www.pressbox.co.uk

The interesting part to my story is that as of January 2011, Volkswagen is considering bringing the Phaeton back to the U.S. in the car's next product cycle.

My point is that back in the early 2000’s Volkswagen forgot what their core message was. That message being that car-buyers had no interest in buying a Volkswagen that cost over $60,000. The fact is Volkswagen was trying to be everything to everybody and this does not work. You need to always stick to your core message because then you will never make decisions that suck the life blood out of your organization.

2 comments:

  1. Great point Tim. It's called 'Volks'Wagen after all.
    Herb

    ReplyDelete
  2. Herb,
    But it appeared that it wasn't for all 'Volks'.
    Tim

    ReplyDelete

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