The Business Environment
I realized, last night — after a total of 1 hour (lost call, being transferred) with Comcast, to add an extra paid service and question their service in general — how difficult being in business really is.
I was very close to switching my service to Wide Open West (WOW-their competitor, who is not that much better). I did not because Comcast gave me some freebies.
I then reflected on my call and what businesses in general are going through. In today’s world, there is not much loyalty for products. People switch in a minute.
When I came to this country, in 1975, my friends were very loyal to products they bought. In fact, when they filled gas, they would check the brand name.
Today the only things that people worry about when buying gas, are convenience and price.
So how does a business keep customers?
Three main reasons.
- Innovation (Unique great product)
- Great Customer Service
- Lowest price (Very difficult — only possible if you are a very high volume provider)
I believe the first two reasons will determine how successful a business is. The “Lowest Price” model is a tough one for most businesses. If you look at the stock performance of companies, you will see the companies who are doing reasonably well are the innovators and great customer service providers.
At first look of companies like General Motors (GM), it appears that the stock is down because of gas prices (stock at around 15; recent high at 40, all time high at 90 and all time low around 10)
Is it?
Let us look at Honda Motor Company (HMC) now.. (stock at around 35 — all time high at 40)
Look at companies like AAPL, GOOG, and RIMM in contrast to companies like Sprint (S), Motorola (MOT), Citicorp (C), Lehman Brothers (LEH).
Other examples — Walgreen (WAG) and CVS at all time highs.
Companies like Honeywell (HON) and Eaton (ETN) are close to their all time highs.
I guess you get my point. If you think about doing business as usual — you will perish.
Make sure you constantly innovate and give the best customer service.
There are many people like you who can provide the product or service you are providing.
And they will.
Mustafa N. Savliwala
