Recently, Randall Stross, a business professor, attacked marketing icon Ted Levitt’s contention that businesses disappear because of a lack of “marketing imagination. It was 50 years ago that his famous article, “Marketing Myopia,” appeared.
Mr. Levitt held that the railroads would have maintained their dominance if they had possessed sufficient imagination to see themselves in the transportation business rather than just in the railroad business.
Mr. Stross says that axle and lamp makers, as well as bicycle manufacturers were best prepared to transition into manufacturing automobiles, which seems to suggest that being in the right place at the right time with the right technology is more important than imagination when it comes to business success.
Yet, it can be argued that Ford Motor Company rose from near bankruptcy to a profitable, growing position because of imagination. It’s CEO, the former head of Boeing, couldn’t understand why so many types and sizes of vehicle doors were being produced, when Boeing had only one door for all its various planes, a strategy that reduced costs and facilitated replacement worldwide.
Ford calls its new Focus, a truly global vehicle. It is sold around the world with all the same parts, a move that clearly reflects it’s CEO’s imagination. In effect, the Focus is, perhaps the first global vehicle and it’s simplified and less costly to produce.
Ted Levitt’s “What business are you in?” question is as relevant as it was 60 years ago. Are you selling insurance, medical devices, shoes, clothing or are you selling something more?