Monthly Archives: July 2006
Ted Levitt
One of my favorite people (minds) on the planet and the person who coined the term “globalization” died at age 81: Theodore Levitt. The reason why Professor Levitt became such a force in my life was because in the ’80s — before any individual or company was thinking about going global — he turned me on to the importance of looking at the world as your market. He also knew how to deconstruct and solve problems by asking the right questions. Something to this day I still find myself doing. Here are some things I will remember the most about Levitt:
• Harvard Business Review — He holds the record with Peter Drucker for publishing the most articles in HBR.
• What turned me on to Levitt — “The Globalization of Markets” and five other great articles authored by HBR talents.
Using the term “globalization” in a 1983 Harvard Business Review article about the emergence of standardized, low-priced consumer products. He defined that globalization as the changes in social behaviors and technology which allowed companies to sell the same products around the world.
AOL: “Certain Death or Free Plus Ads”?
The WSJ reports that AOL is considering making online access to its service–including, importantly, email–free. (AOL email users currently have to pay for one of the company’s subscription plans, although much of the rest of the company’s content is already free.) Per the WSJ, this move would vaporize about one-quarter of the company’s revenue, or $2 billion. The company estimates that it would also result in the loss of 8 million paying subscribers.
Blodget also notes that Vonage’s recent IPO continues to be black comedy (public at 17, now 8.25 after just a month….
Vilas Park
Wednesday Evening Concerts on the Square Scenes
This week’s concerts on the square featured a beautiful evening for the Wisconsin Chamber Orchestra – somewhat of a contrast to last week’s threatening skies.
DeLorenzo and Wallace on Nissan / Renault / GM
Make no mistake – this isn’t about creating a new global automotive powerhouse well-equipped to do battle deep into this century, one that will keep Toyota from taking over the world. And this certainly isn’t about doing what’s best for General Motors and the people who have so much invested in the fortunes of the company. And this in no way, shape or form has anything to do with solidifying America’s manufacturing base or shoring up the economy.
No, this is about flat-out greed, pure and simple.
This possibility is not a case of what would be best for General Motors; it’s driven by egotism and greed. Setting the stage for it were the peculiarities of the financial markets; GM, the world’s largest car company, recently had a market capitalization barely above $10 billion, while its closest competitor’s market cap was $169 billion. Analysts now forecast that Toyota, the world’s second largest car company, should be worth $236 billion within the year, but faltering GM will be worth no more than $15 billion.
It is that situation that allowed a notorious corporate raider, Kirk Kerkorian, to buy 9.9% of GM’s outstanding shares for little or nothing. And with that purchase he gained the leverage to push his personal consultant — whose pay is based not on GM’s improved financial performance but on Kerkorian’s take from his investment in the motor company — onto GM’s board of directors.
Fireworks VR Scene on the National Mall
Mute 19 Years, He Helps Reveal Brain’s Mysteries
Mr. Wallis, 42, wears an open, curious expression and speaks in a slurred but coherent voice. He volleys a visitor’s pleased-to-meet-you with, “Glad to be met,” and can speak haltingly of his family’s plans to light fireworks at his brother’s house nearby.
For his family, each word is a miracle. For 19 years — until June 11, 2003 — Mr. Wallis lay mute and virtually unresponsive in a state of minimal consciousness, the result of a head injury suffered in a traffic accident. Since his abrupt recovery — his first word was “Mom,” uttered at the sight of his mother — he has continued to improve, speaking more, remembering more.
But Mr. Wallis’ return to the world, and the progress he has made, have also been a kind of miracle for scientists: an unprecedented opportunity to study, using advanced scanning technology, how the human brain can suddenly recover from such severe, long-lasting injury.
A Few July 4, 2006 Madison Photographs
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Music Sales: Fewer Big Hits, Many More Sales at the Tail….
Larry Lessig pointed me to an interesting bit of research on filesharing and the decline of music sales in Denmark, which shows that the fall in sales has been felt far more in the hits than in the niches. The work, by Claus Pedersen, uses data from the Nordic Copyright Bureau. That means the data are not just estimates of sales declines, but actual sales. I’ve charted one aspect of the research, which looks at the change in sales in four sales categories, from bestsellers to the long tail: