Page 327 - (DK) The Business Book
P. 327

DELIVERING THE GOODS        325

        See also: How fast to grow 44–45   ■  Thinking outside the box 88–89   ■  Protect the core business 170–71   ■
        Morality in business 222   ■  Greenwash 268–69


        Updated styling                                                   South Korean company posted
        US industrial designer Brooke                                     record profits of $8.9 billion, up 47
        Stevens defined the term “planned                                  percent from the year before. Over
        obsolescence” as instilling in                                    the same period, Apple’s share of
        consumers “the desire to own                                      the smartphone market in Europe
        something a little better, a little   Obsolescence never meant    dropped from 30.5 to 25 percent.
        sooner than necessary.” The           the end of anything,        This was no doubt partially due to
        strategy of planned obsolescence     it’s just the beginning.     the popularity of Samsung’s Galaxy
        was originally developed by General   Marshall McLuhan            S4, whose new features included
        Motors, who realized that advancing   Canadian media theorist (1911–80)  the S-Translator, which enables the
        technology would adversely affect                                 user to translate nine languages
        its future business. During the                                   either from speech to text, or from
        1950s, it began updating the                                      text to speech.
        styling of radiator grills, taillights,
        and bodywork every few years to                                   Status anxiety
        encourage drivers to replace their                                Soccer teams also take advantage
        cars more often.                 speed up replacement purchase, by   of planned obsolescence. At the
           Over the last 30 years, as    giving cars regular face-lifts. The   beginning of each season, most
        technology has advanced, cars have  redesigns are intended to encourage   teams release at least two replica
        become even more durable and     status-conscious motorists to ditch   uniforms for fans to buy. The home
        reliable. Today, new cars are built   their still perfectly good vehicles for   and away shirts are restyled to be
        to last. With regular servicing the   the latest body shape.      noticeably different from last
        engine and transmission of a new                                  year’s uniform. This type of
        car will still provide reliable service   New features            planned obsolescence is based on
        for over 250,000 miles (402,000 km).   Car manufacturers also employ   status anxiety. Many fans will
        Typically, with average usage, this   various other tactics to persuade   choose to buy the new shirt to keep
        equates to an expected useful life   consumers to update their vehicles.   up with other fans, or to show
        of more than a decade. If drivers   New car models incorporate    loyalty to their team, even though
        only replace their vehicle once   cutting-edge features such as   the shirt that they bought a year
        every ten years, this would lead to   touch-screen multimedia control   ago may still look as good as new. ■
        low sales for car manufacturers.   systems for in-car entertainment, or
           To generate higher sales levels,   additional safety systems, such as
        many carmakers now set out to    technology that warns about lane
        create planned obsolescence to   departure and potential collisions.
                                            Phone manufacturers, such as
                                         Samsung and Apple, use planned
                                         obsolescence to increase revenue
                                         by persuading consumers to replace
                                         still-usable cell phones or tablets
                                         with something newer and better.
         I believe in status symbols.    In this highly competitive market,
              Brooks Stevens             the rewards go to the company that
          US industrial designer (1911–95)  creates planned obsolescence
                                         soonest, which gives them the
                                                                          Children in Zimbabwe wear soccer
                                         fastest rates of replacement
                                                                          shirts donated by English soccer
                                         purchase. Samsung has used       teams. Soccer fans in Europe will not
                                         this strategy to great effect to    buy last season’s shirts because the
                                         boost profits. In July 2013 the    styling is updated each season.
   322   323   324   325   326   327   328   329   330   331   332