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Volume 7, Issue 7 - July, 2008 • Strategies for Exponential Change in the Global Market Shift Happens is an incredible video on YouTube. If you haven’t seen it yet, I would highly recommend that you take a look. It will give you a new perspective on Change in the Global Market. Since I am all about enhancing performance in organizations, it is pretty obvious that organizations are going to have to be very agile to survive in the new world we are facing. That is going to require a new style of leadership that will work across three generations that will exist in the workforce. Some leaders are already well on their way, and others may have to step out of the way before the organization can develop a capacity for change. We must also re-evaluate some of the existing thought processes that have become embedded in our thinking. The Product Life Cycle has been and will continue to be a basic tool used to maximize profit over the life of a product. How we apply it is changing dramatically. For as long as I can remember, companies that survived and prospered were either number one or two in their respective industries. The goal for marketers was to gain market share in an effort to automate production and achieve economies of scale that would allow additional market share gains, more automation and eventually more profitability. Everyone was working to create a “Cash Cow”. In reality, what happened all too frequently was that the product was pushed to commodity status. As manufacturers compete for share, they tend to drive volume up and prices down creating a slide toward commoditization. Every day, you can pick up a paper and read about another company laying off workers, shuttering plants and/or moving production off shore. These are generally companies that have moved their products toward commoditization. There are at least two strategies that I have seen that allow companies to survive and prosper during exponential change in the global market. First is the “Blue Ocean Strategy” which I wrote about some time back. You can read about it at http://www.cannonadvantage.com/news0706.htm . The second strategy begins with changing the target from the mass market to the second or third sigma on the upper end of the bell curve of customers. While a smaller market, it has higher prices that, when properly managed, should provide more margin funding to adapt to an exponentially changing market. This market is usually focused on innovation, customization, service and/or speed. A great example is the bicycle industry. The mass appeal market for bicycles is serviced by China and Korea today. The domestic manufacturers like AMF, Murray, Schwin and Huffy are either gone completely or selling products made off shore. These companies for the most part focused on bicycles that sold for up to about $300. In the meantime, Trek and Cannondale are two very successful domestic manufacturers of high end bikes that can sell for up to $3000. In short, mass market products tend toward commoditization and production off shore. Survival for organizations in advanced countries faced with exponentially changing global markets is going to require a different focus based on innovation, customization, service and/or speed. How well prepared is your organization to survive and prosper in an exponentially changing, global market? • Leaders Leverage Exceptionalism “Leaders Leverage Exceptionalism” is a new program that has been evolving in my mind for many months. This program is designed to create leaders at every level in your organization and it addresses the two things that every organization must do to survive and prosper in an exponentially changing, global market. While not my original intention, I was very pleased when one of the early audience members referred to it as “motivational”. I am about to start marketing this program but wanted to make it available to my readers at a special introductory price. Call me toll free at (866) 598-8450 to reserve a date at the special reduced rate. If you have a subject that you would like to see covered in future issues of “Taking Aim,” please send me an email at aim@CannonAdvantage.com.
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Robert E. Cannon "Best Practice" Sales Force Development Change Management Customer Service Assessment for ISO Requirements Smart Thoughts from Smart People "We live in an age when unnecessary things are our only necessities." Oscar Wilde
"The old parties are husks, with no real soul within either, divided on artificial lines, boss-ridden and privilege-controlled, each a jumble of incongruous elements, and neither daring to speak out wisely and fearlessly on what should be said on the vital issues of the day." Theodore Roosevelt
“Alcohol may be mans worst enemy, but the bible says love your enemy.” Frank Sinatra
"Anyone who takes himself too seriously always runs the risk of looking ridiculous; anyone who can consistently laugh at himself does not." Vaclav Havel Taking Aim © 2007 Bob Cannon, The Cannon Advantage Newsletter. All Rights Reserved. The Cannon Advantage visual branding by Zarney Creative. For contact information, click “Resources.” |
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