"Both men thought that the industry [hotel industry] was stable and too homogeneous relative to the diversity of customers it sought to serve. [Moi ici: Este é, para mim, o ponto-chave, ofertas demasiado homogéneas, apesar da diversidade da procura. O cliente não é um substantivo colectivo. Não é o cliente, é um cliente. É a diferença entre miudagem e o filho concreto de um pai e de uma mãe] The industry had largely been unaltered since the onset of hotel chains over half a century ago.
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what steps to take when looking for a new way to compete in a relatively stable and homogeneous industry:
- Focus: Don’t try to be attractive to everyone.[Moi ici: Pois, um clássico deste blogue. Escolher os clientes-alvo, evitar a miudagem]
- Eliminate all things superfluous for your chosen customer base.[Moi ici: Algo que faz lembrar a Blue Ocean strategy]
- Replace them with new offerings found by analogy.
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When you are in an industry where the firms are more homogeneous than the customers, it should be possible to define a subgroup whose needs are alike, which may well cut across traditional demographics. Focusing on that particular group often enables a new way to compete because the firms that try to be everything to everyone will inevitably be imperfect in their offering.
As Levie put it: “I think that when you decide on a niche market, what you decide on what you want to be doing, do that extremely well and don’t do other things.
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When having defined a subgroup, companies often proceed to think of things that those customers would value and be willing to pay for. But citizenM took another step first; it asked “what things can be eliminated for this particular group, without much affecting its willingness to pay?”
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Focusing on a core customer, eliminating unneeded elements, and its active use of analogies enabled citizenM to develop a new model in its industry."
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