I was talking recently with a good friend of mine, a brilliant marketing guy who lives in, and literally adores, Austin, TX. On that same day, Dell Computer, the leading corporation based in Austin, and long the company that made Austin a "company town," just announced steep sales and earnings drops.

This bad news was not an isolated occurrence for Dell. The Round Rock, Texas computer maker had been experiencing a string of bad business news during the past few years. Sure, they could explain away their current business decline by pointing to the disastrous economy — the recession did play a role in Dell’s negative numbers — but Dell’s troubles went far deeper than that.

It has now been nearly two years since founder Michael Dell rode back into the company to restart and relaunch the Dell franchise after most agreed it had lost its way. But the Michael Dell calvary was not having much effect. As a result, the company that had been the leading PC maker for years, was struggling in a very public way.

Dell had also recently announced major changes in its marketing department. This is the same group of "world class marketers" that had been assembled fairly recently by Chairman and CEO Dell to reignite interest in the Dell brand and get sales and revenues flowing again. Well, it was a spectacular bust. The much heralded chief marketing officer, who had been hired just about 18 months before, left the company with no real results. His chief lieutenant followed suit shortly thereafter.

Dell was stuck in the muck up to its axel! And, there was no tow truck in sight.

My Austin friend and I wondered what Dell needed to do to pull out and get back on track. I said that it would take a lot more than a new ad campaign, fancy colored PCs, or yet another price cutting effort. For Dell to regain its competitive edge, it needed a true "Game Changer."

A Game Changer is a strategy that can make people — buyers, employees, distribution partners, key influencers such as reporters, bloggers and analysts — sit up and take notice. And once they are up and paying attention, hopefully those people would say or think, "Wow, that really is different, and worth checking out." (The recent Business Week cover story in focused on Game Changing ideas in a difficult economy.)

Dell needs a Game Changer strategy…badly.

An incremental plan just won’t work. This is especially true in a severe economic downturn like we are mired in today. To get its mojo back, Dell needs to completely change the game in the computer industry. Michael Dell already did it once, when he first started selling PCs from his U. of Texas dorm room. In the process he reinvented the sourcing, manufacturing and distribution model for the computer business. That was a true Game Changer.

I am not going to suggest what Dell’s Game Changer strategy might or could be (they ain’t paying me for that…yet!). But, I promise you it’s out there and it’s not an impossibility. Not by a long stretch.

But, that doesn’t mean Dell is going to find it, either. From my perspective, the company has been suffering from a chronic lack of imagination for a long, long time. It is going to be hard for them to get those Game Changing Thunderbolts flying, but it can be done.

To understand the incredible redemptive power of a Game Changer strategy, consider these standout examples from relatively recent business history:

• Hyundai — Formerly the laughing stock of auto manufacturers because of its carboard and chewing gum cars that defined cheap and flimsy in the 80s, Hyundai is now rivaling Toyota and Honda on many key dimensions. How did Hyundai completely change the game in their business? First by improving the design and quality of their products, and then putting their money where their mouth was by offering a Game Changing 10-year warranty. That got people looking and listening and thinking, "Gee, if they can stand behind their cars for 10 years, they must be pretty good." The rest was automotive history.
• Apple – Of course Apple had to be on this list…it is one of the most innovative, Game Changing companies in the history of business. Apple’s (Steve Jobs’) massive Game Changer was the iPod. In one fell swoop, Apple fundamentally changed (to its own design) the global music industry, putting Apple solidly back in the winner’s circle. Apple then followed that monster success with a phone industry Game Changer, the iPone. Great companies are built and lead with these kinds of Game Changers.
• McDonald’s – The Golden Arches brand was pretty moribund a decade ago, pulled down by indifferent food and service, declining store environments, terrible marketing communications, a lack of product innovation, and more agile competitors (like Wendy’s, which now is need of its own Game Changing comeback). McDonald’s decided enough was enough, and their Game Changer strategy was essentially a return to basics. They improved quality, tightened store standards, made sure food was always hot and fresh, developed interesting new offerings and got the pricing just right. In short, they polished everything about the McDonald’s brand. And they then crowed about the "new" McDonald’s by launching a smart global campaign under the tagline, "I’m Lovin’ It." This total integrated marketing effort was a true Game Changer for McDonald’s. In fact, it literally turned the company around. Today, because of its new focus on quality and service, and also consumers’ desire for low priced restaurant options, McDonald’s is one of the few bright spots in the global recessionary economy. All due to a Game Changing strategy that was effectively and consistently implemented over time.

Just look around, and you’ll see other examples of companies that have come roaring back, or substantially grew their business, through Game Changers. Toyota and its focus on hybrid engines (the Prius). My old company E*TRADE, and its great competitor, Ameritrade, in launching the online brokerage revolution. And, pretty much everything that Target does is a Game Changer, from clever advertising to hip and name brand designers, offering exclusive products at low prices. Target truly changed the game in discount retailing.

In addition to Dell, there are also quite a few companies that desperately NEED a Game Changer in their business (perhaps your company would fall in this category, even just a little!). As I have noted many times in this blog, Starbucks, once itself an historic Game Changer, now sorely needs a new one (oatmeal is a nice addition, and a marketing success for Starbucks, but it does not rise to the Game Changer level). Sears, the once proud All American retailing brand, has been in search of a Game Changer for years (Penney’s found its comeback strategy with fresh fashion offerings). In the high technology space, Sun Microsystems is badly in need of a Game Changer. Palm may have finally found its Game Changer with its new iPhone competitor announced at the CES recently in Vegas. If that doesn’t work, I don’t see how Palm survives.

Another brand that is in dire need of a Game Changer is Reebok, the formerly high flying athletic shoe and apparel brand. When Adidas acquired it a few years ago, Reebok’s share was 9% of the category. Today’s Reebok’s share has dropped to just 2.5%…a truly dramatic decline! According to Ad Age, Reebok is pinning its future on reverting back to its women’s fitness roots. The company’s Game Changer will supposedly be a women’s fitness workout routine called Jukari. We shall see! To me this is just another example of how most mergers and acquisitions don’t work in brand driven categories.

What is your Game Changer strategy? It could be out there right now, but it will take some work, and a lot of collaborative imagination, to bring it into view.

One of the best sources of Game Changer ideas is your customers. Talk to them, engage them, and co-create with them. You will be very surprised what they tell you. In fact, they have probably been suggesting Game Changing strategies to your company/organization for years, you just haven’t been listening closely enough.

Get your Game Changer strategy going now! If you don’t your competitors just might change the game without you.

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