Turmoil is Opportunity in Disguise: Adjust Your Strategy – Now!

Many industries are experiencing unprecedented turmoil as (1) consumer preferences continue to transform, (2) competition increases in volume and quality, and (2) the cost of doing business increases. Because of these factors, executives are experiencing thinning margins, eroding sales and declining market shares. Normally, stiff business conditions relegate leaders to focusing on business survival, instead of assertively pursuing expansion. Unfortunately, this “practical” approach is the most common and flawed business strategy.

Contrarian Views.  Beget Contrarian Results.

Your competitors temper optimism and outlook during economic ineptness. Just as investing during a down cycle is a profitable long-term plan; an aggressive strategy during slow market conditions bares future fruits. Prudent executives are identifying and executing strategies that strengthen their industry position and improve market share. Your adversaries are in a holding pattern: waiting for the storm to pass so that they can get back to business as usual. Regrettably, the industry will not be the same.

Storms Bring Rain. Rain Brings Growth.

In business, post-storm conditions rarely return to their pre-storm circumstances. The landscape damaged by inclement weather requires an offensive rebuilding; utilizing stronger materials and improved processes that strengthen the structure towards withstanding potential storms. In other words, your business must employ a radical and measurable strategy adjustment to create a defensible storm position (i.e. competitive advantage). Don’t let the pending weather conditions deter you from aggressively seeking a leadership position in the marketplace. Playing the “wait and see” game could be fatal.

Organic & Inorganic Growth Strategies: Growth by Any Other Name

Your competitors are employing strategies from 1998; most are not prepared for the industry changes. During tough markets, look beyond the obvious to envision and prepare for the market that will be, not the market that was. This requires an offensive approach that delights current customers, aggressively pursues prospective customers and consumes less efficient competitors.

Organic growth is defined as expansion through increased output or sales. This strategy uses innovation (product extensions, expansion, etc.), marketing (pricing, distribution, etc.) and productivity (systems, processes, etc.) to improve market position. Winning the battle and achieving a victory for customers on the fields of business competition is a very rewarding accomplishment. But it’s not the only growth methodology.

Another approach is to employ an inorganic expansion strategy. With this directive, you merge or acquire an opponent (or partner) to establish a strong competitive foothold. This method enables you to gain entrée into a new industry, market, channel, or geography with the cache of the acquired company. The goal is to prevent “acquisition indigestion”: the inability to efficiently absorb the acquisition or merger.

Turmoil = Opportunity

Whether employing an organic or inorganic growth strategy, take advantage of the discomfort and disarray your competitors experience during less than perfect business conditions. Be reminded that these strategies are not mutually exclusive; they can be executed in unison. Use an opportunistic offensive on customers and business to yield the competitive advantage you need to position your business to ensure long-term success. Aggressively analyze your resources, customers, competitors, suppliers, manufacturers, etc. to identify scope for growth. Change your organizational strategies, processes and roles – now.

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