Tag Archives: The Innovator’s Dilemma

Make it Memorable

114aI recently just returned from my first real vacation in many years. I joined some of the members of my high school class for an 8-day Caribbean Cruise.

We sailed aboard Carnival’s Splendor and it was wonderful.

Behind The Fun

Carnival offers a special behind the scenes tour of the ship on the last sea day of a cruise. It’s a very extensive tour that starts on the bridge and time with the captain, Splendor’s Roberto Tine.

Next, we travel to the ship’s engine room and visit with Splendor’s chief engineer Mario Testa.

What we basically learn is that everything on today’s cruise ship can be fully automated, but a full staff of people man the controls and make the decisions.

The Carnival Splendor can carry 3,012 guests along with a crew of 1,150.

The Key People

One of the light boards on the ship had pictures of the key personnel on the Splendor and showed four people, the captain, the chief engineer, the head of hotel operations and the cruise director.

MarQ

The person just about everyone on the Splendor came in contact with was cruise director MarQ Anthony.114

His Facebook page really tells the story of this dynamic personality. People write on his page things like: We will definitely be returning just for MarQ and his funny, crazy self.  He blew it away. Truly an epic vacation. The most memorable moments of the cruise included the very talented, energetic, and hilarious MarQ, our cruise director.  I won’t forget this cruise anytime soon! Carnival has a jewel with MarQ and some other staff members on that ship. MarQ was fantastic, phenomenal, amazing, and overall the most energetic and fun person I’ve ever met. He made every single event my mom and I attended on the ship memorable and we had a great time. The best part was seeing how much he enjoyed everything he did and his effort to connect and build relationships with people throughout the cruise. We looked forward to hearing his wake-up calls and getting into any event he was involved in on the ship. We loved you MarQ and we look forward to (hopefully) seeing you again!!!

I have to say, I concur with everyone’s comments and MarQ IS Carnival in my mind.

People Attract People                                                                  

I wrote a couple of weeks ago about how it’s people that attract people. I wrote that article to emphasize how it was the radio personalities that put a fire in my belly to be a part of the radio business. I worked in radio for over four decades and then seven years ago I transitioned into teaching when I became a broadcast professor at a university. I wanted to light fires in the bellies of my students for the radio industry.

First Impressions

We never get a second chance to make a first impression. For my fiancé this was her first cruise. For me it was my second one but my first was about three decades ago, so it was like the first time for me too.

Good first impressions come from projecting a positive image and doing that comes from your attitude. MarQ led a team of people on the Carnival Splendor that had a positive attitude. Anna is the head of training and staff development on the Splendor and was the person who led our group of 16 people on our tour.  (Note: the Behind The Fun tour of the ship is limited to a maximum of 16 people)

The crew’s section of the ship is like a city within a city. It’s not as flashy as the guest accommodations but it is clean, comfortable and Carnival makes every effort to ensure that their team members are happy and well cared for. The hiring business model appears to put hiring people with the right attitude first. Everyone on the Carnival Team was upbeat, positive and fun to be around. They don’t just make a great first impression but reinforce that impression with every encounter.

8-Days, 4-Islands

The cruise was a wonderful vacation. We visited four islands over our eight-day cruise, we saw many wonderful and amazing things, we even rode a Segway, but what we will remember forever were the people of the Splendor and how they made us feel.

In the end, it’s not about stuff or things, but people-to-people encounters.

Automation

So much of the cruise experience could be fully automated, but it would pale with the experience we enjoyed because of the wonderful people on the Carnival team.

Almost every radio station impacts more people with their broadcast signal than the 3,012 guests aboard the Splendor, but they lose their advantage when they automate and voice track their product. Just because you can, doesn’t mean you should.

Clayton Christensen wrote in the “The Innovator’s Dilemma” that businesses are disrupted not because they ignored threats to their business but because they didn’t recognize the threats to their business.

Radio can’t dilute its core business while in pursuit of possible ancillary activities.

Radio’s core business are talented people totally engaged and focused on their service area, 24/7.

 

3 Comments

Filed under Education, Mentor, Radio, Sales, Uncategorized

Radio’s Dilemma (or Opportunity?)

38Radio’s a business. Peter Drucker said “The purpose of a business is to create a customer.” A business also needs to make profit or it won’t be in business for very long. On that we can all agree.

Surprisingly, many business people who know this still go out of business, often because they focus on the profit part and not the customer part. Plus those businesses either never had or lost their competitive advantage.

Radio’s dilemma is it lost that competitive advantage. That being having an FCC license to broadcast. Not everyone could obtain a broadcast license – they were limited by the Federal Communications Commission (FCC) – or had the ability to profitably operate a broadcast property. Profitability is when you earn money in excess of your cost of capital.

The radio business made a lot of money. Many enjoyed cash flow margins north of 50%. Its success attracted more people into radio ownership because it “looked easy” and made a bundle of dough. As more radio stations came on the air, it drove up wages, increased competition and increased multiples for valuing radio properties when they were bought and sold.

If this type of growth and expansion was all that was taking place, the “circle of (business) life” would have seen the radio industry slow down as the overcapacity from all of the new radio stations fought over the not-as-fast-growing advertising pie. It’s similar to what happen to the casino industry as expansion took off in America after just Nevada and New Jersey were no longer the only two states to license casino gaming.

Enter the great disruptor; the Internet. Radio, as we all once knew it, would be changed forever. For the Internet would now provide the world with an infinite number of “radio” options, like Pandora, Spotify, iTunes, RadioTunes et al. All trying to be ad supported like OTA radio.

Clay Christensen wrote about what happens when an industry is disrupted in his book The Innovator’s Dilemma.  He tells the reader how incumbent companies often respond to their disruptors with disastrous consequences.

Radio looked at the Internet as a “free broadcast license” and put their OTA signals onto a stream and then tried to squeeze a little extra profit by running separate ads on the stream versus over the air. It created a little extra money for the radio business but created a less enjoyable listener experience.  Sean Ross recently wrote in his newsletter “Ross On Radio” how different and better a radio station he listens to online sounded when he actually traveled to the market and heard the same station over the air. The difference was in the breaks and it was HUGE.

It doesn’t have to be all doom and gloom.

Southwest Airlines has enjoyed four decades of profitability. Like Walmart, Southwest had a root purpose for existing. Sam Walton’s Walmart mastered logistics to keep prices to his customers low and Herb Kelleher’s Southwest focused on constant improvements to make travel by air more affordable to more Americans. Like all successful enterprises, they put the customer first and profits were the result of doing everything else right.

For radio to be successful on the Internet, it needs to create a better user experience that attracts and delights the listener or that creates a new and different user experience that will enrich the end users’ lives. Radio, over the air, FCC licensed radio has the best platform to promote its Internet products. The possibilities are infinite. But each product must have a purpose beyond just making a buck.

Businesses that grow have a purpose beyond profit. Businesses that focus their growth on profits won’t have either growth or profits.

6 Comments

Filed under Education, Mentor, Radio, Sales, Uncategorized