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RE: Yes and no...

Posted by stefan botes (S) on September 9, 2015 at 03:55:40

In Reply to: Yes and no... posted by John Marks on September 8, 2015 at 13:05:33:

I think that the concept of a value proposition is a relevant idea in the context of this discussion on Merlin. For a small niche segment, the Merlin's speakers had a high-value proposition, and only if you buy into the full "package" as marketed by Bobby. You need to by the amps he suggests, the Cardas cables etc. All these dependencies make the niche smaller and smaller and in the end the business model is no longer sustainable. Having only 2 models might save on input costs as well, but doesn't work in favour of trying to win new customers that are not in the niche segment, as well making it difficult to justify marketing spend in a very connected global marketplace.

Furthermore, I guess, and only based on my own assumptions, he bought large stock of the 4 drivers he decided to work with many years ago and build competence to bring the best out of these drivers. When he reached a ceiling, limits to growth, he tried to reinvent the models by offering upgrades, as outlined often in threads, (Bam, lead-free etc) and never worked with different basic building blocks-newer technology from Scan-speak, which might and probably surpassed for example the midbass driver he use in the VSM.

It is a classic tale of how one's success can lead to one's failures as it blinds you for new strategic opportunities.

Support from those in the niche segment became stronger to a point of being evangelic and fanatical and which in turn probably did not help Bobby to read the signs of the failure of the strategy and business model accurately or with enough foresight.

Maybe Bobby was a talented designer, I think he was, but his business strategy and supporting business model failed in the end. I am curious as to how many Scan-speak midbass 8545 units, Esotars, and Morel drivers are in stock at Merlin and whether it has been paid for..

I think the human side of all of this is a completly different story altogether.

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