Radical Surgery gives Renault a MarketBuster
In late 2004, Renault launched a new car, the 'no frills' Logan, which exemplifies how eliminating complexity can provide a powerful engine for growth. The stripped down cars offer roomy, basic transportation, and that's it - few electronics, few components, a flat windshield, and no built-in radio or power steering. Eliminating complexity allows the cars to sell for a great price - $9,300, half the price of a Ford Focus or a WV Golf. Renault expects to sell 175,000 Logans this year alone, with a goal of ramping up to more than a million by 2010. Core principle? Take out attributes customers don't care about to offer an irresistible price.
Source: Gail Edmondson and Constance Faivre d'Arcier writing in Business Week July 4, 2005.
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- Posted: Tuesday, July 05, 2005
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Next entry: Websense tames the Wild West of the Internet for Profit
Magna RX on June 26, 2009
On the issue of lost productivity, Salary.com calculated that employers spend $759 billion per year on salaries for time they expected work which wasn’t performed. The article cites personal use of the Internet was the culprit.
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