Thinking, Why Ernesto Schmitt Thinking, Why Ernesto Schmitt

Of Luxury Wolves and Robot Sheep

Why Big Business can't crack the challenger model

“Surely it can’t be that hard”, the thin-rim-bespectacled CEO thundered. “Go launch some copycats, and unleash our spending might. We’ll crush them in no time.” For the CEO in question, insert at will any of the distinguished gentlemen running whatever FMCG giant tickles your fancy. The scene might be imagined, but the reality of it is anything but: in boardrooms around the globe, Big Consumer Business is trying to respond to the challenger brand onslaught – and notably failing.

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Thinking, What Ernesto Schmitt Thinking, What Ernesto Schmitt

Why Trust vanishes like a Guilty Thing

When it’s gone, it’s gone. Rejoice!

There was genuine sadness in their eyes, and more than a hint of hurt pride. For the assembled coterie of McDonald’s executives, the maligning of their brand was simply incomprehensible. “All our beef comes from sustainable, local farms”, one of them said. “There’s only prime chicken breast in our Nuggets”, another insisted. “We give some of the most disadvantaged in our society safe jobs with decent pay and real prospects for productive lives. So why does everybody think we’re slave drivers and that there’s only disgusting gristle in our burgers?”.

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