Do you see what I see? I see dinosaurs, monkeys, even cockroaches. Why don't you see them? Because they are too close to them. But to be able to see them, you have to take a step back. That is the essence of the strategy, to step back to be able to see further. Welcome to the "Marketing Strategy" segment. Here we will learn what strategy means, and I will keep it very simple. I will talk about nothing but animals. Through these animals I will talk about why that step back that creates that distance, is another way to overcome myopia and achieve Noon Nopi. It's not a matter of height, but a matter of distance, and it helps us understand why this definition and why doing it correctly matters so much, especially in the context of International Marketing. Well let's get started. Let me ask rhetorically who is stronger? On the left corner, I present to you T-REX, that weighs nine tons. In the right corner we have a common cockroach that weighs 9 grams. Apparently there is no competition because one is much bigger and the other one is almost invisible, but everything depends on what we qualify as strong, because size sometimes does not matter that much. In fact, we will learn that that size can sometimes interfere with victory. And in the end, everything is about winning, and that's where this word, strategy, comes to the track. It comes from the Greek word "for Generals". although really in the past it was mentioned in relation with winning wars, here it is related to another type of war. It's about Marketing wars, and about the long period which defines who is the last man or animal standing. In other words, about survival. And that's how clearly the cockroach is much stronger, because we know what happened. It still exists, whether we like it or not, I think most people do not like it. While dinosaurs became extinct, they became extinct because of their inability to adapt to the changing environment. So survival prevents extinction, that's not just a problem for dinosaurs, not only for animals, it happens to companies too. That table is a summary of the best ten. But if we include the 500 richest companies of 1958, and we compare them to now, obviously almost 90% of them have disappeared, so now they do not exist. So we see clearly that the ice age is not only a problem for animals, it can happen to businesses as well, and that window of change gets shorter and shorter. Well, why do companies become like dinosaurs? it's a combination of reasons, I'll delve into it later, but it's a matter of size, and it is perhaps related to success. How ironic, and it really is an integral part of that, It is how we define our industry. Well, what is the problem with the size? the size itself is not a problem, of course, but it could represent other problems a lot more fundamental, such as bureaucracy. Just like thinking about changes, as we maybe lose concentration on what we need to do to survive. Here in Asia we have many companies, many of them are huge. I mean Korea, Japan and India too, and China, with a company like Alibaba. And when we combine only two or three of them, we are talking about millions of people affected, that's because sometimes the change or innovation can be very slow, because it must motivate all these people to change too, it's not just a handful of people who must change, but in reality the whole organization has to change. It's like one of those aircraft carriers that needs many kilometers to change its course. Well, companies can be like that too. The message here is clear, even if you are big, at least you should be more innovative. Act or even think small. What is the problem with success? Well, I talked about maybe being too close, so I will not approach the camera again. Now do not worry, but sometimes success causes myopia, so we can see the monkey, especially the monkey trap, and how the monkeys were captured. Many are very surprised when they see that, for his unwillingness to simply let it go. Let it go, let it go, but they cannot do it. And think like monkeys, or as companies or as people, especially when we face a risk, An imminent risk that could mean life or death. We should let it go. Man, let it go, so even if we say or think: poor monkey, that monkey could be you. This is how other people may see you from your perspective. Then success can generate myopia, which is a physical condition, and there is this outstanding article written by Theodore Levitt, on Myopia of Marketing, in which he talks about how companies and industries, become bankrupt due to myopia, and so success, again, like size, in itself is not a bad thing, but we must separate results from the process, and we must really understand the reason for our success, and be very careful, especially from the perspective of consumer, that defines our business well. In terms of what is our final benefit, of what our value proposition is, we must to be able to separate short term profit, from long-term risks. When that long-term risk is greater than short-term gains, we must again just let it go. Let it go. Well, why is the definition of business so important? I have an example here. [SOUND] This is clearly a drill. This is, in reality, a very famous B to B question, which asks, what business are you in? And they may have responded, they are in the drilling business. No no. The correct answer is, they are in the hole business, because from the consumer's perspective that is what he wants. Again, the new consumer field is that they buy holes, not the drill. And the holes can be made with many other objects like a laser, with a computer, numerically controlled machines, whatever. We can do it with several things. So again we can do it with various types of technologies. But companies with myopia, which are limited only to what they produce, they quietly close their eyes, They put bandages on what could potentially be competition. The future competition that is better and cheaper, that may be more global than you, you may not have that competition in your region but you could find that competitor lurking, waiting. So we must learn even, I will say it very slowly, from organisms such as cockroaches or other adaptive organisms. And I've learned that cockroaches are even able to adjust their assessment, It serves functions and thus we know the trance of the cockroach where they are attracted with a hook covered in sugar, and some Cockroaches have apparently learned to think that although it is sweet, it is bitter. Then again, they adjusted to the new environment, believe it or not. Maybe that's because of the type of evaluation method that is focused on risk. Remember it for a performance index. And those companies must adapt. Although again as the monkey, that melon seed can now look attractive, but maybe it can be a red light, a red signal that it can actually be very dangerous. The low hanging fruit can be very dangerous for businesses. And we must incorporate more functions that allow us to evaluate that. Again, from the perspective of international marketing, I think we tend to observe. Many companies do it only in the national market. But these types of threats may be further away, so do not be like a toad in the well that isolates itself thinking that it is safe, when reality can be very different. And as we saw with the drill, we must go far beyond the focus of the product. You have to open your eyes. You must go much further when defining who is your competence and also when adjusting the organization accordingly. This is not just a marketing problem, it can also be related to finance. It can be associated with production. Well, in summary, we learned that survival It looks far in terms of what we need to survive. And we it saw through the adaptation to the changing environment; to do that, we need to open our minds, not only our eyes. We have to not only expand our height adjustment, but also in terms of distance, of how we see the market, how we see the consumer, how we see the competition. And all this will help us to become a survivor. In international marketing we must also adopt that sense.