What This Lesson Is Designed to Teach
In this lesson, we examine Casio Computer Co.’s watch business. When most people hear the name Casio, they immediately think of G-SHOCK. Yet G-SHOCK is no longer the company’s only growth engine. Affordable, retro-styled CASIO WATCH models are also attracting younger shoppers, women, and customers around the world.
Casio is pursuing a two-track brand portfolio: G-SHOCK raises brand equity and profit margin, while CASIO WATCH expands unit sales and brings new customers into the brand. The company is also exiting businesses with limited growth potential and applying capabilities developed in those businesses to new products such as the Moflin AI companion robot.
The larger lesson is that a company cannot keep growing simply by protecting one successful product. It must identify shifts in customer behavior, give each brand a clear job, move scarce talent and capital toward stronger opportunities, and convert yesterday’s technology into tomorrow’s customer value.
It must identify shifts in customer behavior, give each brand a clear job, move scarce talent and capital toward stronger opportunities, and convert yesterday’s technology into tomorrow’s customer value.
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