"Why Otsuka Furniture Failed: Customers are Not Satisfied with Low Prices, It's Not Just About Being a Furniture Store"

Glasp

Hatched by Glasp

Aug 18, 2023

3 min read

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"Why Otsuka Furniture Failed: Customers are Not Satisfied with Low Prices, It's Not Just About Being a Furniture Store"

The Keystone ICU Project, implemented at hospitals in Michigan, introduced a checklist strategy that aimed to improve patient outcomes. This project highlighted an important aspect of human behavior - our tendency to overlook or undervalue solutions that we have already discovered. It is common for us to underutilize old solutions, even if they are considered best practices, simply because we feel that we have already considered them.

One of the key reasons for this underutilization is the misconception that "everybody already knows that." We assume that if everyone is aware of a particular solution, then they must already be implementing it. However, this assumption is often far from the truth. Just because something is known doesn't mean it is being put into practice. We often get caught up in the allure of new solutions, believing that innovation is the only way to make real progress. But sometimes, the most effective answers are the ones we already have at our disposal.

This notion can be applied to various fields and industries. Take the case of Otsuka Furniture, a company that failed to thrive despite offering low-priced products. The typical assumption is that customers are always looking for the cheapest options, but Otsuka Furniture's downfall proves otherwise. The failure of the company can be attributed to the fact that customers are not solely focused on price. While affordability is a factor, customers also value quality, customer service, and overall experience. Otsuka Furniture's business model, centered solely around low prices, failed to meet these additional customer expectations. It serves as a reminder that success lies not in simply following a trend or assuming what customers want, but in truly understanding their needs and delivering on them.

In both the case of the Keystone ICU Project and Otsuka Furniture, the common thread is the underutilization of existing solutions. We often dismiss these solutions as boring or outdated, believing that progress can only be achieved through new and groundbreaking ideas. However, progress often hides behind these seemingly mundane solutions and underused insights. It is in mastering the fundamentals and leveraging what we already know that we can truly make a difference.

So, how can we apply this principle of "doing more of what already works" in our own lives and endeavors? Here are three actionable pieces of advice:

  • 1. Take inventory of your existing knowledge and solutions: Before seeking out new ideas or strategies, assess what you already know and have tried. Often, the answers we seek are right in front of us, waiting to be recognized and utilized.
  • 2. Embrace the power of simplicity: Boring solutions may not be as glamorous or exciting, but they can be incredibly effective. Don't overlook the basics in pursuit of complexity. Sometimes, the simplest solutions can yield the best results.
  • 3. Understand your audience or customers: Whether you're running a business or working on a project, take the time to truly understand your audience or customers. Don't assume that you know what they want or need. Engage with them, listen to their feedback, and tailor your solutions to meet their specific preferences and requirements.

In conclusion, the idea of "doing more of what already works" challenges our inclination to always seek out new solutions. It reminds us that progress doesn't always require innovation; sometimes, it simply demands a deeper understanding and utilization of what we already know. By embracing this mindset, we can unlock hidden potential, achieve better results, and ultimately make a lasting impact.

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