SMLXL: A new route to market

SMLXL: A new route to market

SMLXLIn the late 20th Century companies created value through ‘competitive advantage’ in their market place.

In the early 21st Century companies will create value through creating new ‘market space’ by re-shaping old industries, and providing compelling reasons why customers should want to engage.


Why SMLXL?

Today the “glue that holds value chains and supply chains together” is melting and even “the most stable of industries, the most focused of business models and the strongest of brands can be blown to bits by new information technology.”


Why SMLXL?

Today companies are in fear of customer power and militancy, and plagued by loss of trust and scepticism about their motives.


Why SMLXL?

Today, more than ever before, businesses need:

• to create brands with lighthouse identities that move, excite and engage customers such that they in turn become advocates for the brand

• business models that leverage the new opportunities of digital convergence

• communications strategies that give proper weight to the 60+ customer-company touch points that now exist.


Why SMLXL?

SMLXL is a Demand Consultancy that helps

companies create clear, focused and compelling

strategies that deliver these business needs


All these brands used the principles of disruptive business model creation to create new ‘Market Space’.


The people behind SMLXL…

The founders of SMLXL were key players in the creation of no fewer than three of these major successes, all of which used the principles of disruptive business model creation.


SMLXL: ‘Built for purpose’

SMLXL has been created to enable companies to explore the currently untapped leading edge, disruptive business models latent in their markets before their competitors do, and successfully navigate this newly-converged and hyper-competitive world.


Twins Mobile: Twins the famous music duo from Hong Kong were made into a mobile phone brand for Twins fans.

Twins mobile transformed the mobile phone market in Hong Kong. Creating a high yield demand for the service.

Twins mobile is based upon “reconstructing the value chain by creating services that would engage users, providing value both the telecommunications company the information providers and a passionate fan base.”

Emergent examples of disruptive business models that created new ‘Market Space’:

eBay: is a company that's in the business of connecting people, not selling them things. eBay has both streamlined and globalised traditional person-to-person trading. This facilitates easy exploration for buyers and enables the sellers to immediately list an item for sale within minutes of registering.

As of Nov ‘03 eBay reported an increase of third quarter revenues of $530m (£314m.) For the nine months to the end of September turnover has reached $1.5bn (£888m). Profits for the quarter hit $103m (£61m), taking the total for the year so far to $299m (£177m).

Pop Idol: A combination of 19 Management, BMG and ITV. A virtuous circle, creating entertaining television, high audience figures, music publishing and an entire new revenue stream.

Advisers to the programme believe Pop Idol is likely to be worth up to £70m by the time television, recording and other performance rights have been exploited around the world.


Emergent examples of disruptive business models that created new ‘Market Space’:

Nokia:

Nokia started out in the wood pulp business in 1865. Next they entered the rubber industry. From rubber the moved into telecoms cabling. From cabling they transformed themselves into the world’s leading mobile handset manufacturer. The first GSM call was made in Finland in 1991 with a Nokia phone on a Nokia-equipped network. That year Nokia began selling its network technology around the world.

It is Scandinavia's biggest company, and one of Europe's Top 10, with a market capitalisation of $102bn. The company sells its phones in 130 countries, has offices in more than 50 and employs 60,000 people worldwide.

iTunes & iPod:

The iPod was launched in Nov ‘01 and has since captured 25% of the digital audio player market. Apple’s integrated music service which now includes the iTunes Music Store (on-line shopping facility), iTunes (desktop mp3 application) & iPod (portable mp3 player) is the market leader in music downloads. On its first launch day, 200,000 songs were downloaded. It is now available to Window users. By the end of ‘03 15 million songs have been downloaded.


Disruptive business model creation…

SMLXL uses new and more robust tools to understand customer needs and to create offers that customers will find compelling.

SMLXL re-imagines how their clients can engage with customers and other audiences, interacting and co-creating value for all concerned.

SMLXL: A new route to market

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