Create something scarce and coveted => you win
Or in HP’s case, create something not ultimately coveted, get out of the whole business of creating that product, spark a demand wildfire when you sell the remaining units at a $99 deep discount, and now hint that you might keep continuing the manufacture of that product given the possibility of there now being a sustainable consumer base. What the face?
In an in last year’s Harvard Business Review (namedrop), Seth Godwin stated that in a world where traditional marketing campaign models are being upended, and competition may mean fighting towards the bottom of the barrel with lower price margins, the most optimal position would be to create what’s scarce, and coveted. To specialize in meeting a difficulty, because ultimately servicing what is difficult is scarce, and valuable.
People who can do difficult work will always be in demand.
Now, what’s scarce is not limited to the production of an innovative product, because the definition goes beyond that: he cites “beauty” as an example, or “leading change”. The possibilities are actually a lot more than the literal sense, and extend in avenues such as job hunting, strategy of all sorts, product development, etc.
Apple is a prime example of a company being able to create something coveted, and winning. Yet, this is why HP’s latest developments add an interesting new wrinkle to marketing strategy, and should be studied in other campaigns. If HP can actually resume development of the tablets out of the strategic concession of deciding not to make them, then establish a foothold in the consumer market, then that’s amazing. This sort of strategy, however, is at best a one-time maneuver, and only after a considerable length of time, or distance, from the previous use: to “pull an HP”.
But this leads me to something that I have been thinking about, and drafting, to publish at a later date: the concept of creativity within a limited resource world. Creativity is a renewable resource, and a powerful differentiator between yourself and another competitor in an economy biased towards hard science skills, an Asia-centric mindset, and a strong professional network. Create something scarce, and coveted, and there is no race to the bottom. I’ve had a few hair-pulling weeks of mulling over UI design, a year or so of trying to finalize a song, with spurts of creativity in between. The main challenge is how to be effectively creative, and that article is still in the works…
