HBR – Managers in service businesses face unique strategic challenges compared to product-oriented businesses. This article outlines key questions managers should consider, such as understanding their specific service type, defending against competitors, optimizing operations, pricing strategies, developing new services, and making strategic acquisitions. Service businesses require tailored approaches to address these strategic areas effectively.
Disney’s Streaming Profit Amid Wall Street Worries
CNN – Disney achieved streaming profitability, with Disney+ and Hulu contributing $47 million in profit, offset by ESPN+ losses. Despite improvements, Wall Street reacted negatively due to projected softness in future streaming growth. The company faces challenges transitioning from traditional media to streaming in a competitive landscape dominated by tech companies like Netflix. Management must sustain profitability amid market uncertainties and strategic shifts.
Viking Cruises: Navigating Luxury for Baby Boomers
FORTUNE – Viking Cruises CEO Torstein Hagen, at 81, designs a $10.4 billion luxury cruise line catering to baby boomers’ tastes and preferences. With a focus on the older demographic’s desire for cultural experiences, Viking’s strategic marketing and exclusion of children and casinos contribute to its success. Hagen’s precision and analytical approach, shaped by his background in physics and business, have propelled Viking’s growth despite setbacks. The company’s resilience during the pandemic, commitment to quality service, and plans for expansion reflect its steady course in the cruise industry. However, challenges lie ahead as the industry matures and pricing dynamics evolve, potentially impacting Viking’s position.
Google Criticized for ‘BS Jobs’ by Andreessen Horowitz Partner
Yahoo Finance – David Ulevitch from Andreessen Horowitz criticizes Google for employing people in redundant roles, impacting innovation and shareholder returns. Despite controversy, Google’s projects continue, showcasing varied outcomes and prompting discussions about workforce skills and outsourcing.
By Eleanor Pringle
Building Business Bonds: VitalQuestions for Potential Partners
WSJ – Starting a business with a friend? Prioritize tough talks. Discuss communication styles, define success, assess contributions, align motivations, understand triggers, clarify work habits, gauge risk tolerance, and prepare for potential endings. Choose common business goals over strong friendships to ensure long-term success.
By Molly Baker
Leading Through Activism: Hologic CEO’s Tactics and Triumphs
Yahoo Finance – Stephen MacMillan, CEO of Hologic and chairman of Illumina, shared his strategy for successful leadership in the face of activist investors like Carl Icahn. Having weathered challenges and boardroom confrontations, his philosophy involves listening rather than preparing defensive legal strategies. MacMillan’s efforts to revamp Hologic’s culture and improve financial performance resulted in substantial growth, vindicating his approach when Icahn departed with notable profit. Similarly, MacMillan’s influence at Illumina saw decisive actions like the divestiture of Grail to alleviate stock pressures. Throughout, MacMillan emphasizes the importance of dialogue, effective board role assignment, and understanding the underlying reasons for activism. His advice to Disney CEO Bob Iger, embroiled in his own battle with Nelson Peltz, underscores the urgency of succession planning, a critical aspect he believes the Disney board overlooked.
By Brian Sozzi