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When honour is at stake, this vow I will make November 29, 2009

Posted by David Gillespie in advertising, business strategy.
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I’ve been thinking a lot about The Three Musketeers – my framework for business models which places them (perhaps overly simply, but simply none the less) into two baskets: All-For-One (self-serving pursuit of value) or One-For-All (pursuit of value for an ecosystem). The former is business as usual up until the advent of Google, at which point things seem to turn, and we see more and more businesses cropping up and being successful by creating value

I had, for the longest time, felt uneasy about Facebook. My sense was that it was founded with All-For-One principles, and I have a hard time viewing it as a business that seeks to create value for an eco-system; it is, to my mind, the second coming of Microsoft rather than the second coming of Google.

I say that, but I also now can’t help but acknowledge the market they have developed for small and local businesses to target customers, and the platform they have provided for brands to interact on a more personal level with fans. In some ways, it lessens the role of the ad industry, which to my mind has a hard time justifying itself as even remotely One-For-All, and so can only be viewed as a good thing.

Your friend and mine Umair Haque takes aim at Facebook in a recent Harvard Business blog: over the Farmville debacle

Once, banks held debt till maturity. The great unnovation was being able to sell it to the next guy, who sold it to the next guy, and on and on and on. What was once a simple, short value chain lengthened to the point of absurdity. Exactly the same value chain pattern is surfacing in media. Ads used to be bought and sold through a short value chain. Facebook ended up serving toxic ads because they were sold through lengthening chains of intermediaries — each of whom shifts the buck to the next guy.

The argument does and doesn’t hold water in places – to my mind it swerves dangerously close in places to the kind of opinion that states ISPs are responsible for their customer’s illegally downloading music. The overall point stands however, which is sacrificing the end-user for the man with money is a short-sighted strategy.

We need to spend more time creating things that user wants in the first place.

That is what One-For-All is all about.

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Comments»

1. Goodbye CRM, Hello VRM? : Starshot – Strategic Event Marketing - December 5, 2009

[...] doesn’t mean I’m looking to buy his golf merchandise.  David Gillespie calls this the Three Musketeers business model:  it’s All-For-One (self-serving pursuit of value) rather than One-For-All (pursuit of value for [...]

2. Larry Irons - December 9, 2009

Very nicely made point. I’d really appreciate a little more detail on how you see this playing out. I’m more a user of Twitter than Facebook, but do recognize the value of the latter.


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