CNN's bad business plan and other ramblings

I posted a comment on another diary and had to stop myself from all but hijacking the whole thing with my views on business plans.  Better I should use up my daily diary than someone else's. So here goes: Not only is CNN not doing any public service by stocking up on right wing commentators, it's a lousy business plan. Worse, it looks like we have some other mainstays of the business world who are locked into a world they can no longer manage.  Some thoughts below on why the Bush Administration is promoting the worst business practices ever.

It doesn't take a genius to figure out that if you're going to make your business profitable you have to have a decent plan. There must be a million references out there about how to create one, but the CNN folks don't seem to be reading them. Maybe I could offer them ours?

Rule One: Offer a unique product or service.
No Mensa IQ required here. Anyone can launch a clothing store. What makes one different, or capable of staying in business with a WalMart in town? Simple. Offer quality products with personal service to a unique market. Note: the high end retailers this holiday season did much better than the big box stores.  So, what does CNN do? Instead of offering a higher quality product it reaches out for something already on the market and tries to create a "better copy."  There is precious little difference between the big box stores, and there is now precious little difference between the cable news outlets. A big box is a big box.  

Rule Two: The packaging will sell the product once and only once.  A nice display, a good location, and a bright package will get the product out the door--but if it isn't any good you don't get repeat business. CNN's evidently decided to "package" their product with "brand name" commentators. See Rule One! If the customers/viewers aren't impressed with the product they aren't going to change stations/stores.

Rule Three: Grow or Die  Face it CNN, there's a limited market for cable news. Go after new customers/viewers. Go after new advertisers and sponsors. We sell sporting goods. Think it's all fun and games going out to teach a rank amateur a new hobby? No, but it's absolutely essential to growing the business. But CNN's decided to try to grab a larger stake in a current market rather than reach for a larger future market. There's a reason we don't own Time/Warner stock. Why buy shares of a company that is struggling to gain market share without innovative thinking?

CNN's not the only business with a major problem. Imagine what would have happened if the Federal Government had decided (as it has with the energy companies) to protect the current companies rather than the new ones back in the late '70's.  

Imagine the typewriter manufacturers lobby with thousands of representatives going from office to office to protect their clients from the Scourge of Computer Keyboards!  Imagine their arguments that inserting computers into offices would cost thousands of typists their jobs.  The paper industry would go under, no one would want carbon paper any longer. Think of all the jobs lost!

Our imaginary lobbyists are contacting paper manufacturers, carbon paper producers, and ribbon makers asking them for donations to Senator Sludgepump and Congressman Donuttin so that these intrepid souls could block legislation in Congress calling for more computers in public schools. Astroturf Campaigns suddenly pop up on television screens across the nation telling citizens not to worry about the effect of typewriters and paper consumption on the nation's forests. All to preserve the status quo.

Short sighted business models that place more emphasis on preserving the status quo than in creating and serving NEW and EXPANDING markets are a recipe for disaster. How many jobs in research and development are lost when a company decides to tinker with a current product than to bring a truly unique product to market?  How many future jobs are lost when corporations are more concerned with the Quarterly Reports than the creation of new markets? The Energy companies are a classic example of this myopia. There are businesses out there, right now, that produce pollution control devices. If the government continues to de-regulate pollution control what happens to these companies and their employees?

What's wrong with CNN is just what's wrong with too many large corporations in this country. Myopic business models. A focus on short term gains at the cost of long term losses. And, an Administration that thinks this is a wonderful way to run the economy.