Cutline Speaks

Can You Hear Us Now? Loud and Clear.

posted by Meghan on April 29, 2009

In the past week, there has been a lot of news around new mobile devices and game-changing deals and Verizon seems to be at the center of most. Monday, the Android enthusiast site, Phandroid, speculated that Verizon was working on an Android device due to its recent full-time hire of an Android Devices Expert in their Waltham, Massachussets office. Rumors have continued to swirl around a possible Verizon-Apple deal to bring the iPhone to its network once Apple's exclusive pact with AT&T expires in 2010. On Tuesday, BusinessWeek reported that Verizon and Apple are in talks to develop two new wireless devices that may hit the market this year solidifying these rumors. While on that same day, CNET reported that HTC and Motorola are building smartphones for Verizon's network to give its customers more options beyond the iPhone.

It should be no surprise that the company recently posted unexpectedly strong profits. With its announcements in product developments and partnerships, I'm starting to think that large network following the "can you hear me now?" guy does actually exist (check out the recent advertisement campaign below).

Today, companies have to take risks and create opportunities to avoid failure. Seems to me like Verizon is taking a few risks by potentially introducing a variety of new phones in a down economy and clever promotions. Tracking and calculating Verizon's recent moves reminded me of the recent New Yorker article on how companies should "hang tough" during a down economy. The reporter, James Surowiecki dives into Post's and Kellogg's different product branding and marketing strategies during the depression:

"...Post did the predictable thing: it reined in expenses and cut back on advertising. But Kellogg doubled its ad budget, moved aggressively into radio advertising, and heavily pushed its new cereal, Rice Krispies. (Snap, Crackle, and Pop first appeared in the thirties.) By 1933, even as the economy cratered, Kellogg’s profits had risen almost thirty per cent and it had become what it remains today: the industry’s dominant player."

In his article, Surowiecki quotes the academics Peter Dickson and Joseph Giglierano having argued that companies have to worry about two kinds of failure: “sinking the boat” (wrecking the company by making a bad bet) or “missing the boat” (letting a great opportunity pass). He concludes by saying, "Today, most companies are far more worried about sinking the boat than about missing it. That’s why the opportunity to do what Kellogg did exists. That’s also why it’s so nerve-racking to try it."  

Verizon seems to have a ticket on the next ferry out of town. 

Today, do yourself a favor and look for opportunities to get on board...don't miss the boat.

Tags for this post: pr