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Why Games Workshop is not a good business
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<blockquote data-quote="Cor Azer" data-source="post: 5871677" data-attributes="member: 870"><p>Eh... I'm not so sure those are really counter-examples.</p><p></p><p>The Coke one in particular shows my point - Coke changed the formula for New Coke, and there was a huge backlash, so they changed it back. Ie - sales went down, because people wouldn't just buy it because it had 'Coke' on the label. That's pretty much the opposite of loyalty. Fortunately for Coke-drinkers everywhere, the management decided the the change was undoable, and they wanted their sales back, so New Coke went away.</p><p></p><p>The Apple one is closer, but it also has the catch that people who already have Apple products (I suspect) tend to buy more Apple products because they know they're designed to work together. That can be a huge inconvenience already overcome. People keep buying Apple products because Apple keeps making quality products. </p><p></p><p>Of course, there I'm only really speaking anecdotally, which has already been established as 'not data'. I'm a big fan of my Macbook and iPhone, but not so much my trial with an iPad. The first two just worked together right away (in so much as I've needed them to), but I had technical problems with the iPad. Kept the first two, but returned the latter.</p><p></p><p>I'm probably moving the fenceposts here, but I can see how brand loyalty would be important to some sort of hybrid product/service company - I'm mainly thinking car dealers. Sure, their big moneymakers are the cars, but they also want to drive business into their service departments, so making a whole 'Toyota' experience can be key to that business model. And, I'd have to say in my case, is arguably successful, since my last 5 cars have all been from the same dealership, and I've always gone back there for service. I'd argue that it was because they've given me the best service in my decades of car ownership, but I'm not averse to the idea that I've been brainwashed by them.</p></blockquote><p></p>
[QUOTE="Cor Azer, post: 5871677, member: 870"] Eh... I'm not so sure those are really counter-examples. The Coke one in particular shows my point - Coke changed the formula for New Coke, and there was a huge backlash, so they changed it back. Ie - sales went down, because people wouldn't just buy it because it had 'Coke' on the label. That's pretty much the opposite of loyalty. Fortunately for Coke-drinkers everywhere, the management decided the the change was undoable, and they wanted their sales back, so New Coke went away. The Apple one is closer, but it also has the catch that people who already have Apple products (I suspect) tend to buy more Apple products because they know they're designed to work together. That can be a huge inconvenience already overcome. People keep buying Apple products because Apple keeps making quality products. Of course, there I'm only really speaking anecdotally, which has already been established as 'not data'. I'm a big fan of my Macbook and iPhone, but not so much my trial with an iPad. The first two just worked together right away (in so much as I've needed them to), but I had technical problems with the iPad. Kept the first two, but returned the latter. I'm probably moving the fenceposts here, but I can see how brand loyalty would be important to some sort of hybrid product/service company - I'm mainly thinking car dealers. Sure, their big moneymakers are the cars, but they also want to drive business into their service departments, so making a whole 'Toyota' experience can be key to that business model. And, I'd have to say in my case, is arguably successful, since my last 5 cars have all been from the same dealership, and I've always gone back there for service. I'd argue that it was because they've given me the best service in my decades of car ownership, but I'm not averse to the idea that I've been brainwashed by them. [/QUOTE]
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