HBR On Strategy

Rafi Mohammed, founder of Culture of Profit and author of 'The 1% Windfall,' discusses the importance of reevaluating pricing strategies during economic uncertainty. He emphasizes that slashing prices isn't the answer; instead, businesses should adapt creatively, using methods like strategic discounting to maintain value. Real-world examples, including responses to the Covid-19 pandemic, showcase effective price adjustments. Mohammed also highlights how small price increases can significantly boost profits, proving that thoughtful pricing is key to navigating challenges.

Lisa Su, CEO of AMD and named Time's "CEO of the Year," discusses the evolution of AI in various sectors with Adi Ignatius. She emphasizes the importance of responsible risk-taking and fast experimentation to drive innovation. Su advocates for strategies that prioritize safety, such as AMD’s Responsible AI Council and hiring diverse talent. The conversation dives into the strategic utilization of AI technology, addressing challenges in accessibility and the need for a pragmatic approach to leverage its benefits while mitigating ethical concerns.

Jeffrey Rayport, a senior lecturer at Harvard Business School, shares insights on the pivotal decisions Ryan Cohen faced at Chewy.com regarding logistics strategy. The discussion highlights the delicate balance between outsourcing and in-house fulfillment amid rapid growth. Rayport explores Chewy's unique blend of technology and personal customer service, along with competitive pressures from giants like Amazon. The case study illustrates critical risks and rewards in scaling operations, ultimately revealing the lessons learned from Chewy's remarkable success.

Iavor Bojinov, an assistant professor at Harvard Business School and former LinkedIn data scientist, delves into the challenges of launching AI initiatives, which often fail due to their complexity. He outlines five key steps for success: selection, development, evaluation, adoption, and management. The discussion highlights the importance of trust between users and AI, balancing speed with ethical standards, and the critical role of experimentation. Case studies from Etsy and LinkedIn reveal valuable lessons about user interactions and strategy alignment.

Sean Jacobsohn, a partner at Norwest Venture Partners and founder of the Failure Museum, explores the lessons learned from notable product failures like Harley-Davidson Cologne and Cheetos Lip Balm. He identifies six key forces of failure, emphasizing the importance of timing, financial management, and understanding product-market fit. Through vivid examples like Pets.com and Blockbuster, listeners discover how agility and market awareness can safeguard against business pitfalls. Get ready to rethink your strategies based on these fascinating failures!

Matt Mullenweg, co-founder of WordPress and CEO of Automattic, dives into the pivotal role of community in business. He emphasizes hiring for cultural fit over traditional resumes and discusses the impact of genuine engagement on customer loyalty. Mullenweg compares community building to hosting a dinner party, where authentic connections thrive. He also explores the freemium model's effectiveness and shares insightful strategies for enhancing customer feedback. Tune in for valuable lessons on turning your customer base into a thriving community!

Stefan Thomke, a Harvard Business School professor and author of "Experimentation Works," delves into the transformative power of experimentation in business. He discusses how successful companies like Netflix and Booking.com leverage A/B testing for competitive advantage. Thomke highlights the pitfalls of relying on intuition, advocating for a data-driven decision-making approach. He shares insights on cultivating an experimental culture within organizations, encouraging all employees to engage in small-scale experiments to drive innovation and growth.

In this engaging discussion, Harvard Business School professor Rembrand Koning dives into Thinx's trailblazing journey in the feminine care market. He sheds light on the challenges posed by longstanding taboos surrounding menstruation that stifle innovation. Thinx's bold marketing flips stigma into an asset and promotes empowering women through groundbreaking products. Koning emphasizes the necessity of diversity in decision-making and highlights how changing cultural perceptions can open doors for new business strategies in neglected markets.

Ilya Strebulaev, a professor at Stanford Graduate School of Business and co-author of "The Venture Mindset," discusses how businesses can benefit from thinking like venture capitalists. He explains the importance of accepting failure while pursuing impactful investments. Strebulaev highlights the advantage of fostering a culture of disagreement to enhance decision-making, suggesting strategies like appointing a devil's advocate. He also emphasizes how agility and innovation in large organizations can be improved by embracing diverse opinions and refining decision-making practices.

Peter Cuneo, managing principal of Cuneo and Company, is a turnaround expert with a history of revitalizing companies like Marvel and Black & Decker. He discusses the crucial role of company culture in recovery efforts and shares strategies for effective decision-making. Cuneo highlights the impact of transformative choices, like casting Robert Downey Jr. as Iron Man, on company culture and success. He emphasizes the need for capable teams, effective communication, and a growth mindset when navigating challenging organizational landscapes.