In the world of business nothing ever stays the same. Today’s competitive advantage may be copied by competitors and rendered useless tomorrow. Developing new products and entering new markets are two ways to maintain a competitive edge. But in a fast-paced market, imitators can often quickly follow: even patented items are difficult to defend in a global market. The globalization of commerce has stimulated a shift in thinking about competitive advantage. In many industries a competitive position can come from underlined organizational abilities, in others it could come up from a strategy model of financing, acquisitions, licensing, geographic expansion, or a mathematical model that enables you to integrate several of the above components of growth. Continue reading Dynamic Business Growth
We live in a time when business strategies must be dynamic, flexible and responsive to the ever changing and fuzzy conditions around us. The success of a business depends, even more so today than ever before, on managerial leaders who think strategically and have a well-defined but flexible, proactive strategy formulated on not “enough” information much of which is “fuzzy” and they implement decisively.
Such decisive course is charted by leaders that understand the process of management and the basic elements of competition within a free market economy. They are intellectually agile, flexible persons who can anticipate change and respond smartly and timely to new realities.
During the years of my entrepreneurial activities we examined a couple thousand businesses in the USA and Europe that were failing to perform well and were in the verge of financial collapse. We looked for and identified the basic reasons that caused the underperformance of these enterprises and found the following basic but avoidable factors: The absence of bold thinking; The absence of strategic thinking; Proliferation of products not relevant or non competitive to the market; Plethora of employment non relevant to the competitive line of products that, correspondingly, created unnecessary high costs; Managers have become salary takers, devoid of any sense of entrepreneurship or competitive urgency. It was simple to conclude that management of such companies has abandoned any sense of such dynamic but flexible strategy formulation and, therefore, gradually move toward degradation and failure.
Briefly, if a business is to succeed must have a “dynamic” and “innovative” strategy developed and implemented by able and skillful decisive managers that understand the importance of having flexible strategies containing alternative components of action and further more understand the process of decision making for the effective application of the strategy.