We have all heard the stories about companies who became household names but went bust (e.g. Blockbuster, Woolworths, Toys ‘R’ Us, Sears) and case studies have been written in abundance as to the reasons why these companies lost their way.
If Nokia had not been purchased by Microsoft for $7.6bn in September 2013, it too would, most certainly, be on the list of casualties. In fact, 2 years later, in July 2015, Microsoft wrote off the deal. An expensive mistake to have purchased a company that had lost its way despite being a market leader at one point, owning 41% of the global mobile phone market.
In most cases, these companies failed to see the changes that were staring them in the face and to act quickly. There was time for them to do “something” when the signals were apparent, but they all failed to do so, albeit for different reasons.
The Threat To Businesses Today
These days, change occurs much more quickly and disruption to the norm is happening at a rapid rate. There is less time to see what’s happening, let alone do something about it.
In short: companies can become marginalised very quickly.
With a rate of change that include a constant flood of new competitors, disruptive technologies, regulatory and environmental demands and the changing requirements of the customer, companies need to be more agile and adaptive to survive and stay ahead.
"Today, change occurs much more quickly and disruption to the norm is happening at a rapid rate. There is less time to see what’s happening, let alone do something about it."
The traditional approach of an annual strategic review will not help survival, nor bring competitive leadership.
This will simply fail to provide the agility companies need to make the changes necessary in today’s fast-moving world of business to make the strategic decisions that take the company forward.
Market Disruptions Go Global
Take a look at Uber and how it has challenged norms, markets, existing rules, regulators and disrupted the market.
Its competitors in the main, did not have time to react and those that did, could not compete with Uber’s technology and its financial strength.