If you’ve spent time developing your organization’s strategy, chances are you’re familiar with your competition. You know your competitors’ offerings, their strengths and weaknesses, and how you can deliver where they don’t. But when it comes to preparing for the future, there is one alternative competitor, less obvious but omnipresent, that may not have crossed your mind: nonconsumption. Keep reading to find out why nonconsumption may be a threat to your organization and how to address it.
Is it fair that teachers earn less than bankers or that nurses earn less than CEOs? The value you get to take home may have no correlation with the value you create in the world. What if you could capture what you really deserve? What if you could turn your unique capabilities, assets, and passion into more profit or income, while still doing what you love? If you understand just a few strategic principles, you can. Here is how.
2020 has demanded that companies pivot like no other time in recent history. Organizations with the flexibility to adapt their business models to changing customer preferences find themselves better equipped to face current challenges and to move past them in a post-Covid world. One example of a company that has encountered this year’s inflection point and adjusted successfully is Airbnb.
The Ultimate Strategy
Is “be good” a part of your 2021 strategy? If not, you should reconsider.
When I was in business school, we learned that companies exist to do one thing: maximize shareholder value. At Outthinker, we’ve been talking for years about how this belief has become defunct. Companies are realizing that focusing solely on shareholder value creates resistance to growth that ultimately diminishes value to those shareholders.
Tony Hsieh’s Strategic Pattern
As many of you know, we recently said goodbye to an amazing leader, former CEO of Zappos, Tony Hsieh. We learned many lessons from Tony, the most important one being that the key question in strategy is to ask, “What business are we really in?” On Zappos’ success, he told us, “We were doing pretty well as a shoe company, but our growth really took off when we realized we’re a customer service company that happens to sell shoes.”
Keep reading to discover three free resources to help you answer this essential question and set your 2021 strategy.
How did the startup Harry’s appear out of nowhere to disrupt an $18 billion market and topple entrenched giants Gillette and Schick from their perches? How did some retail newcomers like The RealReal and incumbents like Walmart maintain growth and valuations while so many like Lord & Taylor, Brooks Brothers, MUJI, and J.C. Penney have dropped into bankruptcy like flies this year?
Last week I got to spend five and a half hours with one of the most influential strategic thinkers alive today, Gary Hamel. He has written five global best-selling books, published 17 papers in Harvard Business Review, and has taught at London Business School for 30 years.
In March of 2008, the United States’ national public radio system (NPR) seemed to have a fatal and too common choice: to bet on the past rather than the future. It’s the kind of decision that has initiated the fall of many once-great companies: Toys “R” Us, Polaroid, Borders, Macy’s, RadioShack, and BlackBerry, to name a few.
When an airplane hits turbulence, it seeks a new altitude. One without turbulence. Even better, one with tailwinds.
Now, COVID has certainly injected turbulence rarely seen in history. But is this turbulence universal? Is every sector of the economy under threat?
If you want to predict the path of innovation in your industry, consider one unifying strategic concept: proximity. Introduced by innovation guru Rob Wolcott, proximity is the theory that the production and provision of value moves ever closer to the point of demand. Viewing your industry through this lens can reveal new opportunities, help you clarify where to focus your innovation efforts, and help you better anticipate which innovations will thrive and which will fall.