Digital Twister: How To Map Shifting Internet Market Opportunities

Do you have a ticket for getting into the big-time marketing game played by major corporations across the growing scope of digital media? To get dealt in first you need a unique value proposition others will appreciate. But even with this ticket you won’t get far unless you can grab a good spot inside the game. So get ready to move fast once you’ve opened the digital door. Your goal is to find a market position in the digital landscape, then land on it, hold on to and extend your reach beyond it.

But before you take your first step, you've got to know where you're going. Do you have a plan? Do you know where your business stands in relation to others? Please don't break out your pie chart program. The days when we could divide market share into those nice neat slices – Over. In the digital world we need new ways to map market position. And the map I have in mind looks like a game of Twister — something like a universe set of interrelated circles (or pies, if you must).

Do this right and you'll have a real-world perspective for growing revenue online.

Here’s how to go about it.

You'll want to make a map composed of the major business sectors representing revenue opportunities in the digital economy.

Assign a circle to each of the following:

Music.
Information.
Shopping.
Advertising.
Video.
Audio.
Exchange.
Communications.
Transactions.
Other.

Now focus on the sector you are operating in. Find a point inside one of these categories. Aim. Land on the best niche you can reach inside one or more of these spots. Put your finger on your most lucrative prospect. Also keep in mind any other sectors you intend to play in and how they relate to your initial entry point.

In the digital arena, change is constant. To solidify the position you've landed on, you will need to reinforce it by identifying strategic alliances.

To become a player in any alliance, your company must bring value to the table and buy into a common approach built on a Positive-Sum strategy; one that leverages innovation and marketing to make money for all players.

Simply said: Your unique value plus alliances will help you hold to your position.

Have doubts? The distinction between small and large does not exist online. What distinguishes one company from another are resources — money, technology, marketing, supply, distribution and innovation. For major corporate players, the competition is between resource rich companies to establish footprints on the systems and platform level. Ironically, they all know, none of them can succeed or sustain their objectives without the formation of alliances, with other businesses and consumers. That leaves a lot of room for everybody else.

Do some research into what the following five major corporations are involved in and you’ll learn that they are constantly seeking partners who fit in with their aggregation strategy:

Yahoo!
Google.
IBM.
Microsoft.
Time Warner.

The digital media landscape includes the Internet, wireless, television, handhelds, movies, etc. It is a constantly shifing economy. Therefore, interdependence is an essential component for holding on to a spot. And everybody involved knows it. In this context the traditional one-against-one competition is slowly being replaced by a complex set of one-with-many relationships working in concert to provide superior one-to-one satisfaction.

In addition to platform-centered alliances, an alliance network may start with the partnering of two or more brands and technology providers. Get ready. I see a boom in this arena. Look to share a spot with another company and you'll find new growth opportunities. Here are some recent examples of such efforts:

– Nike running shoes with scanner chip that reports to an iPod.
– Time-shifting DVRs installed in digital cable set-top boxes.
– IBM, Intel, Warner Bros. Studios, Disney, Microsoft, Sony, Panasonic, and Toshiba have formed the Advanced Access Content System (AACS), an alliance to develop non-intrusive security standard to protect content copyright against piracy.

Alliances may also form naturally at a grass roots level based on unfulfilled needs or agendas. Social, cultural, spiritual, and political interests have spun off common-focus movements with large constituencies.

No matter who or what is driving it, allies feed off one another and, as such, must rely on one another to strengthen their individual position on the Digital Twister board. Once you’re well positioned, be careful not to lose your balance with your next move.

Finally, focus on extending your reach. Use your other hand or foot to aim at your next spot (I'm speaking symbolically, of course).

Your goal at this point is growth.

Publicly held, digitally capable enterprises have no choice but to deliver additional profits to shareholders. Their executives are constantly looking for partnering opportunities that extend their reach across the Digital Twister landscape. Privately owned companies can pick and choose their opportunities without that pressure. To grow your company, understand your potential partner’s objectives and leverage your position to extend your reach. Keep in mind that your long-term objectives should include the formation of your own alliance network. Otherwise, you risk loosing your balance as technology and audiences shift going forward.