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NGEE ANN POLYTECHNIC
SCHOOL OF BUSINESS AND ACCOUNTANCY
KICKSTART A BUSINESS
TUTORIAL 2
Generation of Business Opportunities
With suggested answers
Case Study
Harry's, And How To Lead By Following
[Watch the YouTube video in lecture 2 to understand what Harrys does]
Or access it here : [Link]
At business schools, management retreats, and water cooler conversations
everywhere, we’ve been taught to exalt the almighty “first mover advantage.”
The term, which some believe was first made popular by Nobel prize winner Michael
Spence in 1981, posits that inexorable and perhaps even immutable benefits can be
reaped by being first to an opportunity.
While certainly being first can have advantages, by and large the concept is—no
disrespect intended to Mr. Spence—a bunch of hooey today.
I’d rather be later to market and the best, rather than the first for first’s sake.
A great example is Harry’s, the men’s grooming company co-founded by Jeff Raider
and Andy Katz-Mayfield in 2013.
Harry’s is one of my favorites in the “new world order” of consumer brands emerging
today, with their beautifully-designed and highly functional products; modern,
omnichannel business model; deep commitment to customer service; and authentically
fun personality.
I spoke to Raider about the origins of the company and the keys to its impressive
growth.
Like almost all disruptions, Harry’s was borne out of the observation of a specific
problem and a mission to solve it. In Harry’s case, Raider said, the old line experience
to buy razors and blades frankly stunk.
We’ve all been there. First, you have to do a hostage rescue operation to get the
product out lockdown in the blade cabinet. Then comes the sticker shock once you get
to the counter.
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The thing is,however, Raider and Katz-Mayfield were not the first to aim to solve this
problem. Dollar Shave Club beat them to market by almost two years, but those folks
weren’t technically first either; direct-to-consumer models for razor blades go back
decades.
What’s more, one doesn’t need advanced training in game theory to predict that the
massive market leader, Gillette, would not exactly be thrilled by new entrants into their
space and could be expected to counterpunch… hard.
So why in the world would two dudes decide that entering the razor business is a good
idea?
[I’m reminded of Humphrey Bogart’s famous lament in Casablanca: “Of all the gin joints
in all the towns in all the world, she walks into THIS one!” Besides, Raider certainly
didn’t wont for something to do: he’s also the co-founder of Warby Parker, the popular
direct-to-consumer eyewear company.]
For one, Raider said, they knew that there was a design opportunity. He diplomatically
never mentioned them by name, but I happen to know that there have been some
consumer gripes about Dollar Shave Club products in terms of both style and quality.
What’s more, the Dollar Shave Club brand itself, by its very name, is grounded as a
value offering, opening up an opportunity for something a bit more elevated. Harry’s, a
name inspired by a “grandfather figure” for Raider, has meaning and depth to it.
Raider said they also saw an opportunity to deliver better customer service, amongst
other difference makers.
Earlier this year, curious to learn firsthand what all the Harry’s hubbub was about, I
decided to try it myself. After submitting my order, I received what I was certain was an
impersonal email, even though it appeared otherwise. I responded by (politely) accusing
the sender of being a robot, to see what—if any—response that elicited.
Here is what wound up in my inbox a few hours later:
“Hi Paul,
It sure would be cool if I were a robot—however, I’m a living, breathing, human being
just like you! Unless, of course, YOU’RE a robot? That would be a crazy plot twist!
Thanks for the love! That’s why we do this! Let me know if you need anything.
All the best,
Katie”
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Now, scaling deeply human customer service like that is difficult. Chatbots are certainly
part of the future, but will they ever have that good a sense of humor? For the moment,
however, Katie and Harry’s made for a great experience.
Here are three lessons from Harry’s brave move into a notoriously tough category.
1. Don’t be afraid of those before you, even the big established players. Most
incumbents can be disrupted. Don’t play by their rules; change them. There has never
been a marketplace environment that so rewards the underdog upstart as today’s.
2. Embrace design. There are no sure things in business, but the closest you can get is
the insertion of beautiful, fresh, human design into a space that doesn’t have much of it.
And define “design” broadly: story, naming, nomenclature, and tone of voice are all
vitally important design elements (and happen to be areas where Harry’s has excelled).
3. Develop real relationships with your consumers. Many digital marketing gurus have
bastardized the notion of “relationship,” often using the term to refer to largely
impersonal mass communication that is really just one step removed from a well-
targeted TV commercial. Try getting to know as many of your consumers as possible,
personally.
What’s next for Harry’s? They bought a blade factory in Germany with much fanfare,
and are looking at adding capacity. Raider said they are also thinking about how far
their brand can (and should) stretch.
For now, however, Raider said they’re simply focusing on creating great consumer
experiences.
Indeed, “person” is important in personal care. And in that space or any other, being
human is the pathway to first, even if you don't start there.
(Adapted from Forbes, 27 Nov 2017 by Paul Earle)
Question
Referencing the Opportunity Analysis Canvass, name 3 areas under “seeing
entrepreneurially”, that highlight the opportunities that were present in the shaving
space prior to Harrys entry. Explain how Harry’s founders successfully started Harrys
through these opportunities.
Answer:
- Recognized customer pain points in the shaving industry: inconvenient access,
high prices.
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- Differentiated their brand through design, offering beautifully designed and high-
quality products.
- Emphasized superior customer service, engaging with customers on a personal
level.
- Addressed gaps in the market left by competitors like Dollar Shave Club.
- Focused on creating a better shaving experience, attracting customers seeking
quality and design.