Sonnet Technologies learned this lesson after struggling to remain competitive in the Apple Computer ?after market upgrade? business. Based in Irvine, California, Sonnet Technologies has successfully diversified its offering with after market upgrades for computer processing units (CPU), peripheral component interface (PCI) cards, and other enhancement products for the Apple line of products, including the best selling iPod range of products.
The challenge for Sonnet Technologies has been to anticipate the demands of the end consumer, while keeping pace with the constant changes involved in the dynamics of the evolution of Apple products. This has required them to react quickly to modify their product line and deliver the products when the market wanted them; this has not proven to be easy for Sonnet Technologies.
Currently with 60 employees, Sonnet Technologies is the world's leading Macintosh hardware upgrade company offering upgrades for more Macintosh models than any other company. Their continued success is due in large part to a superior staff of engineers, all of who are dedicated Macintosh users. They are driven by their personal desires to invent ways to improve the speeds of existing Macintosh computers and hence the productivity of Macintosh owners. With a strong emphasis on customer service, Sonnet offers 24 hour, seven days a week technical support service.
With the advent of new products from Apple, such as iPods and laptops, Sonnet Technologies realigned its strategy to focus on iPod accessories. Sonnet came up with the idea of an FM transmitter to wirelessly transmit and play the iPod files over the radio. Sonnet Technologies engineers, while knowing the Apple methodology but lacking the expertise and knowledge in FM transmitters, anticipated a short interval of time before the introduction of this exciting new product.
After a frustrating year of trying to develop the transmitter, Sonnet Technologies finally decided to hire an ODM (Original Design Manufacturer) to develop the FM transmitter in Taiwan. Within six months of ?offshore outsourcing?, the Taiwan based team successfully designed the transmitter. Unfortunately, this delay in the development, production, and shipments of the FM transmitters caused Sonnet Technologies to lose the first mover's advantage for a premium product with high margins. While Sonnet Technologies had expected to sell 20,000 per month for their four models of transmitters, the delay slowed the sales to about 5,000 units per month.
Having learned a valuable lesson about outsourcing, Sonnet Technologies knows that to be competitive in a high stakes game like the Apple Computer after market business, they must know their own in-house strengths and weaknesses. They also learned about the importance of putting design and technology in the right place, within the constraints of time is crucial in this global market today. In their case, outsourcing was the right decision albeit a late one.
Epilogue: Sonnet guarantees to ship any in-stock items within 24 hours and any build-to-stock items within 48 hours. These core competencies have seen Sonnet Technologies win numerous awards, including being on the Deloitte & Touche's ?Technology Fast 500? two years in a row.
Part Time Market Research
When business slows down, it's a great time to increase your marketing. Why? Two reasons.
First, you're looking to get more business and one of the most effective ways to achieve this is through marketing.
Second, since so many other businesses are slowing down their marketing, any that you do for your business will stand out that much more and be even more effective than usual.
If your cash flow is lower than usual now, here are some inexpensive ways to market your business:
* Create and send an ezine regularly to your subscribers.
If you don't have an opt-in form on your web site, get one, even if you need to pay a web professional to help you. Then send your subscribers valuable content on a regular basis to build a relationship with them. Nothing will help you economy-proof your business better than a loyal group of subscribers who will buy from you.
* Submit articles to article directories and ezine publishers.
The easiest way to create these articles is to repurpose them from your ezine. I use my blog articles with a few modifications. You can submit articles manually - that certainly takes the least cash - but there are services and software to help you accomplish the submissions.
* Start attending more networking meetings.
These groups are usually not expensive to join and can be very helpful. I'd focus on the ones that emphasize giving and receiving referrals rather than just generic meet-and-greet types of groups if your goal is to increase cash flow now.
* List your web site in the numerous web site directories.
Start with http://www.dmoz.com which only accepts manual submissions. After that, you have the option of submitting your site manually or using a service. Once again, I suggest using a service. This is a one-time job for each site you have and should cost less than $150 for hundreds of submissions.
* Find blogs and forums to add your comments to.
This is entirely free, but can be time consuming. You want to find blogs and forums who attract your target market, and then find posts within them where you have something useful to add to the conversation.
* Develop a presence on some of the social networking sites.
I like Facebook and Twitter. These types of sites can provide another way to build a following of people interested in you and what you have to offer.
* Maximize the effectiveness of your affiliate program.
If you don't have an affiliate program, set one up. If you already have one, create some additional resources - buttons, articles, email messages - to help your affiliates sell your products and send them a message telling them about the new tools. You can have a sales force out there advertising your products and you only need to pay them after they've help make sales.
* Similarly, think about joint venture partnerships.
Reinvigorate any you already have, suggesting a new mailing to their lists. And look for additional partners with lists that would be willing to work with you.
* Seek out opportunities to speak before groups.
These events could be trade show seminars, local business associations, or corporate luncheons - anywhere you can get in front of your target market. Speaking can be one of the best ways to get more business quickly.
Many inexpensive marketing activities are available for small businesses. Pick several that appeal to you and allow you to become visible to your potential customers and get busy!
If you have other low-cost marketing techniques you use, please leave a comment and share them with everyone.
Both Dr. Joe Greco & Peggy Champlin are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Dr. Joe Greco has sinced written about articles on various topics from Real Estate, Web Development and Small Business. Dr. Joe Greco is Director for the Center for the Study of Emerging Markets (CSEM) located in Fullerton, California. As part of the College of Business and Economics at California State University, Fullerton, CSEM was established to promote the flow of gl. Dr. Joe Greco's top article generates over 1900 views. to your Favourites.
Peggy Champlin has sinced written about articles on various topics from self improvement and motivation, Ezine Articles and Anger Control. Peggy Champlin's web design business has been providing a full suite of services and products to help small companies build their businesses online since 2002. Visit
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