An article in Entrepreneur by Howard Hitchcock, President of Lionel LLC.
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You don't miss a trick, Allan. Thanks for posting the article.
Alan,
Nice going sir, I like the way you understand that this is a business, not just something to play with!
PCRR/Dave
Interesting short article. i only hope that what Mr. Hitchcock suggests in his article will help toy train manufacturers down the road. They certainly have their work cut out for them.
Its a reasonably good article - certainly interesting.
The most interesting thing to me about "entrepeneur" has always been that its definition applies equally to those who takes risks, work hard, and fail, as well as to those who take risks, work hard, and succeed, and yet the word seems to be applied only to the latter.
Allan, Thanks for posting this article.
I found it to be very Interesting at #1, more companies should look at things like that! The old saying of the new broom sweeps clean comes to mind
I hope to see Howard do more getting trains out in the media,it can only be a good thing my opinion.
Doug
Thanks, Allan.
Peter
Interesting read.
If I could ask him one question it would be how Lionel plans on staying relevant with trains that run on 3 rail track?
I do a lot of reading of polls and studies from all scales. The data that I have seen shows model railroading growing overall. Unfortunately, that growth is being experienced in the smaller scales while the larger scales are losing ground. There are many reasons for this of course, but I would like to focus on just one. That would be the simple fact that new modelers do not seem to want unrealistic 3 rail track. My own "straw poll" of younger people tends to support that.
If that is in fact the case and you factor in the aging population that has the nostalgia for 3 rail trains then the future doesn't look to bright for 3 rails.
If I were Mr. Hitchcock I would be starting research now on a 2 rail FasTrack system (why not just remove the center rail?) and the modifications that would be needed to allow the existing tooling of engines and rolling stock to be used on it. Technically speaking there is no reason not to have all the goodies on 2 rails (See American Flyer). Only history, nostalgia, and customers sizable collections prevent it.
I know Lionel prides itself on the 3rd rail being part of the company identity, but IMHO they need to develop 2 rail capability in parallel now to give customers a choice going forward. It is certainly a balancing act - please your current customers while enticing new ones. The reality is that they need to target a new demographic. They know that. Hence the points in this article. I just hope they don't try to stick with pushing the 3rd rail. These tech savvy kids have very little tolerance for things being a certain way "just because" in my experience.
PS. Before anyone says "That's why they have American Flyer"... I would agree. I think that IF they wanted to continue to invest in new tooling costs then that is a good option. The problem is that all of the importers seem to be pulling way back on their new tooling costs lately. Perhaps it would be less expensive to just modify existing O gauge tooling and sell to that larger audience? Either way, I wish them the best. Hopefully they are still here 100 years from now.
Interesting read Allan, thanks for sharing it with us. I like his style and feel that Lionel maybe in good hands.
Art