Ian Aird presented in a lively and motivating style, linking Gold, PCs, Apple and Nike to show how different companies have faced the challenge of commoditisation.
From an external perspective, ELICOS schools are very similar, including their Unique Selling Proposition of: GE, IELTS, EAP courses, 20 hours a week, maximum of 18 students per class, CELTA-trained teachers, course books, CBD Campus and Homestay accommodation.
Very little unique about them.
For years there is a constant discussion of price per week falling, Education Agents sellings purely on price, online aggregators that list in order of price per week.
HP/Compaq tried the "pedal harder" approach, always made the most powerful machines, but too soon the second most powerful was good enough. They collapsed to earning just 4-5% on their PC Business.
Is your school the same, selling ‘features’ as HP/Compaq tried?Dell accepted the commoditisation and tried to go beyond them. They innovated on the Service / Channel / Process / Network and Profit Model.
Apple have led an amazing array of innovations, and over 8 years managed every facet of innovation.Customer experience - this is NOT customer service. Example with apple stores, celebrate the buying process, cheering those purchasing new iphones and the subsequent customer engagement. Mckinsey & Company Study of 362 companies, 95% said customer focused, 80% said they deliver superior customer experience, and yet when asked their customers only 8% said they delivered superior customer experiences.
How can schools implement this?
Beyond BrandingBased on this Apple Advert, what is key to their branding? You don’t see them selling on features or their products, instead they sell an identity.
Keys to surviving in a commoditised market: