Cone of Strategy

Attending to the big picture within business environments is my specialty - Where is everyone headed? What is the trend? As interesting as these questions are, and their implication for strategic goalmaking, my thoughts are often pulled towards ideational negative space. Where is everyone abandoning? What is being ignored? This focuses attention on opportunities, and my head loves thinking about new possibilities.

In my cluttered office I have a few fun items. A tchotchke here, a branded squishy ball there. But none more fun than a simple piece of paper curled around to form a funnel. Or an upside down dunce cap, if you are so inclined to envision it. A year ago I was thinking about where the consumer telecommunications industry players were moving and the notion popped that I should create a visual representation both to consolidate my thinking and help with explaining my thoughts to others. I drew vertical lines down the insight of the funnel and used the lines to divide the funnel into three equal sections. Then I put labels on each of the sections. It actually is rather difficult to write on the inside of a steep funnel I discovered, regardless of hand used (I'm ambidextrous). So when I had finished this I had sections labled "Best Price", "Best Network" and "Best Product". Then I played pin the tail with Verizon, Boost, Sprint, ATT, T-mobile, MetroPCS and Cricket. I left out the regional players and the resellers. I placed them first by section - from their public communications where were they headed? What did they want to be known for and what were they known for being? Verizon has firmly camped itself in the "best network" category, both for aspiration and media spend "can you ear me now?" But Verizon was also attempting to move a bit towards best product, though without success. ATT had managed to bridge the gap between "best network" and "best product". By running commercials challenging verizon for the title of biggest network, they had successfully diluted the leadership position in that category. And then ATT had the uppercut of iPhone success. Bam! Best product ownership. Metro, Cricket, Boost all went into the space between "Best price" and "best network". Depending on which commercials they were running, the message was either price driven or nation-wide coverage driven. This left Sprint and T-mobile circling. And if you're circling, then you don't belong to any category. No brand category is bad. You're not the best price, nor the best product nor the best network. Ouch. To make matters worse, the other competitors are moving higher up towards the rim of the funnel, solidifying their hold on their category niche. Circling trying to make it stick that your best network, now your least expensive, etc where competitors have a firmer hold on that particular space makes it impossible to hold any position. The only way Sprint and Tmobile were heading was down, and they do not want to hit the hole at the bottom of the funnel. That is brand death, when you're not known for anything.

The funnel, when I looked it over after drawing all the competitor positions in, had a curious empty spot. The intersection between Best Price and Best Product stood unguarded. Carriers are notorious for overlooking Best Product. Their product, when they think about it, is the network itself. They own the towers, or access to the towers and provide the service. They're not deep thinkers about the devices or the applications on those devices - that's for other specialists to consider. And there lies an opportunity. Why should the non-carriers have all the revenue? There is no reason a carrier cannot develop an innovative product to carry on its network. Product in the physical sense and in the application sense; either will do, or both. At that time, I hadn't thought about the coupon phone. I hadn't thought about tablets or android phones or other devices because the telecom game was all about cellular phones. But that is where the cone of strategy led. A single piece of paper sparks the wonder. Builds into a business proposal, gathers steam as people are engaged, enlightened and inspired. Becomes an operational movement within the organization. And now, one year later I have on my desk a paper cone and a coupon phone.

Now lately, I've been thinking about a box...