How to Make a Profit on Underserved Customers: Defending Your Turf

Lessons to transform unprofitable market segments into lucrative ones (excerpted from “Bottom-Feeding for Blockbuster Businesses” by David Rosenblum; Doug Tomlinson and Larry Scott, HBR March 2003) In a recent HBR article, which took a close look at bottom-feeders-companies, David Rosenblum, Doug Tomlinson and Larry Scott have offered some lessons to transform your own industry’s unprofitable, market segments into lucrative ones-if you’re willing to stop looking at so called bad customers as pariahs and start looking at them as untapped opportunities (see why companies should serve the unprofitable market segments at post: “How to Make a Profit on Underserved Customers: Removing the Blinders“.) Previous posts have introduced some lessons including (i) redesigning the business model and (ii) build a portfolio of business... [read full story]