Results for articles with tag 'virgin' (4 total)
06/18/2010 11:29:25 AM 
Here are some of the key points:
1. Always imagined Zappos as selling more than shoes- used Virgin as a model, but instead of being all about being "hip and cool", Zappos wanted to be about the best service.
2. The board wasn't all behind the brand's unique corporate culture, many thought it was some kind of crazy experiment. The majority of the board wanted the company to focus on profitability and they couldn't see the connection between this and culture.This caused serious tensions and the only possibility for founder Tony Hsieh was to buy out the board at the likely cost $200 million.
3. The company explored various options, but followed up with Amazon who they had met back in 2005. In 2009, Hsieh presented to Bezos, he instantly got the core Zappos selling point, its culture.
4. Amazon closed the Zappos deal on November 1st at a valuation of $1.2 billion.
5. Zappos benefits from Amazon's understanding of its culture and they are starting to share ideas.
6. Zappos operates independently, but the relationship is governed by a document that recognizes the uniqueness of Zappos's culture and the responsibility of Amazon to protect it.
7. The deal appears to be working- in the first quarter of 2010- net sales were up 50%.
8. As it grows, it's even more important for Zappos to protect its unique culture and they are taking steps to do this, by tracking cross departmental relationships and encouraging employees to look at photos of random employees and asking them how well they know them.
There are a number of critical points that come out of this experience and it seems obvious that many of the money guys just don't get the soft intangibles that make all the difference to a brand, they seem unable to draw the correlation between the two.
Perhaps, the advocates, supporters and creators of these soft intangibles need to do a better job of linking these to financial performance. The other important thing this story shows is the importance of a strong leader who has a point of view and a belief system.
Posted by Ed Cotton
03/10/2009 11:51:43 AM (1)
(1) On the surface, it appears there could be a better time for Virgin to enter the banking sector. A time when the credibility of the established players is at a historic low and with Virgin having a legacy of taking on the established players and offering an alternative.
However, some big questions remain.
1. Does Virgin still have credible challenger DNA?
2. Is Virgin the brand that consumers would trust for their daily banking needs?
3. What's Virgin going to do that's different from banking as usual?
Clearly, Virgin can't rely on it's brand alone and is going to have to provide innovative products and hopefully, a lot of transparency to being a credible offer to this space.
Posted by Ed Cotton
09/06/2008 12:41:21 AM
Smart move because the sensibility of both the show and the brand are a perfect fit with Virgin.
It's something you can't imagine another carrier doing and clearly sets Virgin apart from the rest of the carriers.
Clearly the airline industry is looking to re-coup as many $$$ as possible, so partnerships like this are its future.
United are doing it with Westin.
What about Jet Blue?
Surely it was the brand that should have been partnering with HBO, instead, they are giving away Bed Bath and Beyond vouchers, that's not right.
Virgin has been eating away at Jet Blue's image and this type of partnership is powerful enough for them to leap way ahead.
Posted by Ed Cotton
09/15/2007 06:50:59 PM (1)
(1) "In other words, we’re stuck with the current system, because it isn’t really in any airline’s interest to try to change it. As long as no airline makes a dedicated effort to distinguish itself from the pack, all the airlines can stay lean, even at the expense of quality. In that sense, the most honest thing about the airlines may be their advertising, which tends to emphasize the flying experience—lulling us with talk of leg room and fully reclining seats. You may end up waiting on the runway for a couple of hours, the message seems to be, but at least you’ll do it in a comfortable chair."
The challenge appears to be for those who are trying to do something genuinely different- Jet Blue, Southwest and Virgin.
How do they avoid getting lumped into the category?
How do they also motivate their staff to care and raise standards, when the competition is doing such a bad job?
How and can do they do more than promise a comfortable chair?
It's interesting to think of other categories were the image of the category is so strongly ingrained, it's very tough for brands to push against it.
Banking is an obvious one.
Posted by Ed Cotton
Articles for tag virgin (4 total).