Datsu-Sara

“ It has just two parameters: its mean (μ μ ) and its standard deviation (σ σ ). The first parameter, the mean, is pretty easy to understand for most people (it’s just the average value). The SD is a bit trickier. To calculate it, you subtract the mean from each person’s observation (i.e. how different they are from the average); square those values (so positive and negative differences have the same value); take the average of these values (this is called the variance); and then take the square root of the result so you are back on the same scale as the mean. The SD (or the variance) then gives a sense of the dispersion of the sample. It is also common to discuss normally distributed variables in units of SD (e.g. 1 SD of height is equal to 3 inches). ”

“ While this is an extreme example, you can take the same concept and apply it to any Company. Are they targeting the high-end or low-end? What age group? What other products could fall under the same umbrella? All of this is taken into account as companies grow. For more specific examples, look at high-end retail and see how many companies are forced to take “branding set backs” and target slightly lower price points to expand their market while maintaining the perception of being exclusive/luxury (Coach, YSL and even Tesla are examples). ”

“ For a more recent but still “classic” example, let’s look at Airbnb. Airbnb was able to get off the ground because there was a critical subset of customers in the hospitality industry — initially young people, although not exclusively so — who were overserved by many aspects of the hotel industry. Hotels were serving customers along many axes of performance — comfort, privacy, loyalty reward programs, and so forth — that just weren’t very important to a specific subset of customers who didn’t care too much about all that stuff; they just want a place to s ”