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DEVELOPING NEW BUSINESS IDEAS unbundling the benefits Conversely, opportunities may exist to create
simpler lower-cost business models in emotionally oriented industries
which traditionally provide many extras which add cost without
increasing functionality.

Conventional airline travel, for example, carried social and emotional
cachet, with the trappings of customer service helping to command
premium prices. easyJet dispensed with all the emotional trappings of
airline travel – (ostensibly) free meals and drinks, high levels of
customer service – to create one of the first no-frills airlines. Having
observed the high proportion of customers who travelled extremely
light for their weekend trips, competitor Ryanair researched whether to
introduce a price premium for luggage which had to be stowed in the
hold (and thus increased fuel cost through additional weight and
extended turnaround time on the tarmac).

The cosmetics industry is typically viewed as a high-emotion market,
where high levels of advertising and packaging expenditure sell hope
rather than the physical products. Anita Roddick hopped over the
emotional boundary by increasing the functional component of her
Body Shop cosmetics – against industry convention, she focused on
natural ingredients, healthy living and a positive environmental
message and avoided the significant expense of paid-for advertising and
non-reusable packaging.

boundary-hopping into area

six: time Hopping over the time

boundary of time in order to spot substitute functional and
trends and take immediate action industries emotional appeals

to buyers

in order to secure future benefits is

exemplified by Bernie Ecclestone conventional
of Formula One fame. He spotted market
the potential of digital television
ahead of the pack and invested alternative complementary
heavily in sophisticated systems strategic groups products and
within industries services

non-conventional
parts of the
buyer chain

which would create a worldwide spectacle capable of commanding

premium television transmission rights.75

Sony provides an interesting perspective on boundary-hopping because
the company recognises that certain early-adopter markets represent a
window into the future. Nobuyuki Idei, president of Sony, recognises
that Tokyo has created a society which is completely different from
other regions of Asia. Accounting for a quarter of Japan’s gross domestic