Monday, January 4, 2016

Barry Hearn's Rules #6

6.     When it comes to grass roots, make sure you own the grass

This is a reference to when Mr. Hearn had taken over the Leyton Orient Football Club and had to make a decision about whether he should continue to lease the stadium grounds from the council, or if he should purchase the grounds and develop them.  In the end he opted to purchase the grounds for approximately $500,000 US.  He then developed the surrounding area building four sets of flats at each corner of the football grounds, and used the money from that to build a new stadium and develop local services for the community such as a health center, and an IT center for the local youth among other benefits to the local area.  In other words he put the money back into the club and in the process created a sustainable business for the club.

There is the old, dyed in the wool idea of what a manufacturer is and that is subject to a great deal of debate - and it is not my intention to open that particular can of worms.  But what is intriguing is the different manner in which brands are going about ensuring their autonomy.  I would particularly point out what one brand is doing -

NOMOS has taken steps to become even more "in house" and their NOMOS swing system (their in-house escapement) has helped in their steady progression to become even more self-sufficient.  This is an intriguing approach on the part of the folks at NOMOS.  What I continue to find intriguing about NOMOS is their steady approach.  Slow, steady, consistent growth.  Good things, sometimes, take time.

Now in fairness, the big dogs have been doing whatever it takes to ensure their ability to "control the means of production".  And that is to be commended.  Omega, Rolex, Hublot continue to grow and develop their manufacturing capacities.  And when you are as big as they are, that is what you have to do to ensure your forward momentum.

So when it comes to grass roots, make sure you own the grass.

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