The first in an ongoing series of examples that show how focusing excessively on current successes can create longer-term growth issues:
Cisco, which bought Flip a few years ago for $800 million, is mothballing the brand. Flip sells small, easy-to-use hand-held HD video cameras, and was at the leading edge of personal video. A combination of Cisco’s lack of focus on this business and the shift to HD video cameras on smart phones has stalled growth and led to Cisco’s decision.
Key lesson: You cannot expect to repeat current successes ad infinitum. You must continue to raise the bar and use your current growth as a springboard to the development of new solutions.
I still believe that the Flip brand has commercial value. Perhaps another owner and management team will be able to leverage it.
© Stuart Cross 2011. All rights reserved.