Why and how should we reinvent our business?
WHY should we reinvent our business?
Successful businesses are relevant, competitive, value-based, problem-solving based with ability to create excellent experience for customers and practicing growth culture strategies. Late November we published a video on growth culture. But there are at least 2 problems that we cannot avoid.
- Competition and disruption
- Change in customers' preferences
Before Uber, the traditional taxi system was working very well, either you could wait at a busy junction to call a taxi or you could book it by calling them through your phone. Uber made a big change in customers' preferences by staring a new business model. We cannot stop our competitors from creating new models and disruptions. It's a free world in many countries and business atmospheres.
What we can do is reinventing our business and the model to not only survive but also to grow as fast as possible.
Simply, we need to reinvent our business to keep our market share and if we are smart enough to make our competitors irrelevant. You have heard about "Blue Ocean Strategy" surely but as a review, you can find this useful and short description and video:
The above reasons seem acceptable but the billion dollars question is: "HOW?" So...
HOW should we reinvent our business?
This is what you should find out based on your market situation, and your business model but the below points should make your way brighter:
1. Give enough freedom to your team members to come up with new ideas, to try them and to implement them. Make them your business partners by sharing your profit and results. (They may ask for more or they may leave you once they assume that they know as much as you know but that shouldn't stop you to grow your own business). People should not follow instructions one by one. Briefly, respect rebels! They can change the game for everyone.
2. Nowadays customer experience and relationship management are not limited by doing some surveys and focusing on satisfaction! The entire business world's focus moved a long time ago from customer satisfaction to customer expectations. For your customers and clients being satisfied from your product or service is very usual. They expect you to provide them something out of the box. Something exciting to pay you even more! How can we get some basic ideas at least? We can ask them directly.
Effective communication with customers should be facilitated by technology. Applications, social media, websites, etc.
The more data we can get from our customers, the better we can analyze their expectations and behavior.
3. Sometimes, adding products or services to our portfolio may help us to keep our market share or to increase it providing that we are aware of market segmentation and by differentiating our customers' preferences.
On the 3rd of December 2019, Starbucks came up with a new holiday-themed iced drink. CNN reported it.
We learn the followings from the new cold drink:
- It's for a specific segment: YOUNG people.
- An alternative for soda or energy drinks (considering the big wave of healthy products)
- Strengthening product portfolio even more: cold drinks up more than half of the company's sales in 2018 and adding a new product in the same line should push the results higher.
- Focusing on habits and expectations based on Starbucks COO's word: "These categories are more habitual and create more brand affinity"
Reinventing business models and product portfolio is a must but there is no manual for it. If we wish to keep our business alive, we should have a look into others' plans to be inspired.
Enjoy your reinvention ;-)