Mis-alignment Creates New Ventures

As it often happens, I’ve read something by Seth Godin, and been inspired.

Recently he wrote about “misalignment”

This line of thinking really does give rise a lot of potential business opportunities.

It also exposes a lot of areas of inefficiency in the current ways we live and do business.

Some of his examples included (and I am paraphrasing here):

Examples of relationships that are aligned:

  • The Mercedes Relationship:  “The buyer wants a prestige product that reliably delivers an expensive label that’s unattainable to many.  Mercendes-Benz wants to reliably and consistently charge a lot for a car that sends a message to everyone else.”

An example of the mis-aligned relationship

  • The Dell relationship:  “The buyer wants a cheap, boring, reliable computer.  Dell wants to make more profit.”

When you break it down so simply, there are a tremendous amount of companies that aren’t aligned with their customer.

When Dell began, it definitely had a different mission than it does today, and I think that Michael Dell did a fantastic job of building a company that not only was very profitable, but it also served a great need to get inexpensive, well-built computers into the hands of millions.  I don’t think that anyone could argue that.  But Dell isn’t Apple.  Dell isn’t cool.

Does this mean that Dell is doomed?  Not necessarily.

For years Dell was known as a great place to get a good, cheap computer; why is the best place to get a cheap, well-built computer today?

Is it Dell?  Is it Gateway?  Is it eMachines?  Is it Acer?  Is it Compaq?  Is it your local Fry’s (or similar) store?  Is it a company that doesn’t exist today?

I honestly don’t know, and you probably don’t either.  It maybe a company that not enough people have heard of.

And that is the point, this misalignment exists, and has created a niche for someone to step up and become synonymous with selling cheap, reliable PCs.

This hardly is limited PCs sales.  This could be applied to most markets/products.

Someone may emerge to fill this niche for tablet PCs (as that market develops)…and whomever can solve this for the health care industry should be sainted.

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