Fall of Guitar Hero: The importance of innovation in business

The music game “Guitar Hero” which took the world by storm only six years ago is now set to be axed by it’s publishers Activision. It’s an important lesson for any software, online or offline business that even when you have a super-successful product, you can never bank on it’s popularity forever. A strong brand will only stay strong if it is kept fresh.

The reasons given for axing the game are the cost of licensing fees and the production costs of the music hardware – together with falling popularity for these types of games.

Brands that continue to innovate and invest in new technologies and ideas, even in the face of adversity, are the ones that stay successful in the long run. Apple are a classic example. After taking the world by storm with the Macintosh in the 1980s, they floundered in the market for a number of years remaining a niche competitor to the much stronger Windows/PC movement. And then came the iPod, iPhone and iPad and once again Apple sit as kingpins of the computer industry again. And in contrast the former-super-innovator Sony, once a brand of true innovation has found its brand somewhat depleted by allowing themselves to become what we would call too “safe”.

The lesson of Guitar Hero for all businesses is that no matter how successful you are, no matter how much brand power (aka “brand equity” in marketing-speak) that you have, no matter much you take the world by storm, never, ever forget the power of new innovation and new ideas.

This is where the power of online business comes to play. We see many of the major offline competitors of today, the corporate chains, underestimating the power of online, effectively laughing it off and believing that their offline brand value will carry them through online. Online really does level the playing field, as there are different rules of engagement and it doesn’t necessarily follow that those with the most money to spend can dominate the web. A page one ranking on Google for every search term cannot be bought for example. Even the biggest brands in the world have learnt that the hard way by underestimating their competition. A good online brand, good quality service, fast delivery, smart marketing and strong prices can do wonders to an online firm. It’s never too late to take on an industry if you know your customers well and are prepared to use the specifics of online to your advantage. There’s no doubt that with the commitment and innovation, a small home-business can successfully compete head to head with a multinational corporate online. And win!

So if you have an online idea, maybe it’s time to get an online business started, and open an online shop (and if you do decide to do that, we have the web hosting space and the tools to help).

Today’s giant is tomorrow’s has-been unless you develop a culture of innovation, go with your gut. And never stop.

See the news report about Guitar Hero’s demise here.