Corporate-Think Window Film
This artcle was originally posted back on October 21, 2007. Now that we are deep into the first quarter, 2008 we can observe if we were correct in our assumptions?
We have already seen the demise of an old line manufacturer, Sun Gard FTI, and the rise of a dealer movement to organize for dealer rights. Several of the manufacturers and their distribution have taken the easy road of trying to add new dealers to lower the market price points (they will say to increase their share!) I also assume that the manufacturers will grab at some inconsequential number to position themselves in a growth mode, while all economic indications point to the complete opposite. Reality as a rule never seems to enter the "corporate" mindset.
Mike Feldman 2/16/08
The window film world is an interesting case study for Business majors and the complexity of the competitive landscape is of primary interest to each player, whether a manufacturer, distributor or retailer (dealer).
Let's call it a macro view and a micro view, with each layer of product, performance, marketing and sales inexorably intertwined. This is the playing board of window film or to coin a phrase the "Matrix" of window film.
In this eco-sphere we find the concept of the "ideal" prototypical dealer versus the reality of the window film marketplace. The fundamental strategies of local requirement versus the Utopian strategic planning (one would hope) of the corporate entities that do battle in one shape or form locally and globally.
At its simplest level the winners or losers are defined by objective criteria like sales volume, market share and growth. Ultimately profitability would seem to be the greatest achievement but somehow this typical measure of success is not as applicable as you might think!
Whatever the standard of measurement being used in the industry; success or failure on a local level is contingent on many factors and variables. Understanding the local demographics, competitive strategies and economic reality is critical for a dealer's success while not necessarily resulting in an equal success for the film manufacturer. Turning that equation upside down you will soon discover that the failure of large manufacturers to understand their markets or dealer needs is the root cause of their inability to forecast accurately or stay ahead of the curve when it comes to product development and marketing direction and leadership.
The local dealer perspective is so foreign to corporation thinking as to be completely alien to their culture.
Corporate advancement within an organization is rewarded on positive speak and Pollyanna assumptions. The failure to assess field reality no matter the geography is a typical missing link and one that can not be easily fixed with a slogan or simplistic band-aid solutions.
The corporation mind-set is a combination of fear and threat of failure, combined with the attempt to control their false reality with a presumption of competence confidence and unsupported by tangible reality; knowledge.
This is the time of year when corporations create their 2008 forecasting as part of the on-going 5 year strategic planning. One can only imagine that surreal exercise. Clearly their sales have taken a 2007 nose-dive and their 4th quarter prospects are rather bleak. This will lead to the corporate "Blame Game", and quite probably a foolish knee jerk reaction against their channels of distribution and dealers. We were once part of that world and understand their fear and internal conflict.
Thank God the marketplace dictates the outcome.
In the Real-World of window film the winners are those that create effective and dynamic solutions and execute their plan. In the Real World it's "flesh and blood" consumers who must weigh the value equation between a "name only" brand and measure the efficacy of the product(s) being proposed.
In the Real World prices need to react to the consumer confidence and competitive pressures. Consumers vote with their feet!
So- -while Corporate-Think says they must add more dealers selling their brands in order to increase share, they actually devalue their distinctiveness and reduce their dealer's ability to make the profit they need to promote that corporate brand. The Law of Unintended Consequences clearly applies.
We can't wait!
We have already seen the demise of an old line manufacturer, Sun Gard FTI, and the rise of a dealer movement to organize for dealer rights. Several of the manufacturers and their distribution have taken the easy road of trying to add new dealers to lower the market price points (they will say to increase their share!) I also assume that the manufacturers will grab at some inconsequential number to position themselves in a growth mode, while all economic indications point to the complete opposite. Reality as a rule never seems to enter the "corporate" mindset.
Mike Feldman 2/16/08
The window film world is an interesting case study for Business majors and the complexity of the competitive landscape is of primary interest to each player, whether a manufacturer, distributor or retailer (dealer).
Let's call it a macro view and a micro view, with each layer of product, performance, marketing and sales inexorably intertwined. This is the playing board of window film or to coin a phrase the "Matrix" of window film.
In this eco-sphere we find the concept of the "ideal" prototypical dealer versus the reality of the window film marketplace. The fundamental strategies of local requirement versus the Utopian strategic planning (one would hope) of the corporate entities that do battle in one shape or form locally and globally.
At its simplest level the winners or losers are defined by objective criteria like sales volume, market share and growth. Ultimately profitability would seem to be the greatest achievement but somehow this typical measure of success is not as applicable as you might think!
Whatever the standard of measurement being used in the industry; success or failure on a local level is contingent on many factors and variables. Understanding the local demographics, competitive strategies and economic reality is critical for a dealer's success while not necessarily resulting in an equal success for the film manufacturer. Turning that equation upside down you will soon discover that the failure of large manufacturers to understand their markets or dealer needs is the root cause of their inability to forecast accurately or stay ahead of the curve when it comes to product development and marketing direction and leadership.
The local dealer perspective is so foreign to corporation thinking as to be completely alien to their culture.
Corporate advancement within an organization is rewarded on positive speak and Pollyanna assumptions. The failure to assess field reality no matter the geography is a typical missing link and one that can not be easily fixed with a slogan or simplistic band-aid solutions.
The corporation mind-set is a combination of fear and threat of failure, combined with the attempt to control their false reality with a presumption of competence confidence and unsupported by tangible reality; knowledge.
This is the time of year when corporations create their 2008 forecasting as part of the on-going 5 year strategic planning. One can only imagine that surreal exercise. Clearly their sales have taken a 2007 nose-dive and their 4th quarter prospects are rather bleak. This will lead to the corporate "Blame Game", and quite probably a foolish knee jerk reaction against their channels of distribution and dealers. We were once part of that world and understand their fear and internal conflict.
Thank God the marketplace dictates the outcome.
In the Real-World of window film the winners are those that create effective and dynamic solutions and execute their plan. In the Real World it's "flesh and blood" consumers who must weigh the value equation between a "name only" brand and measure the efficacy of the product(s) being proposed.
In the Real World prices need to react to the consumer confidence and competitive pressures. Consumers vote with their feet!
So- -while Corporate-Think says they must add more dealers selling their brands in order to increase share, they actually devalue their distinctiveness and reduce their dealer's ability to make the profit they need to promote that corporate brand. The Law of Unintended Consequences clearly applies.
We can't wait!
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