When Strategies Fail: Exploring Alternatives and Business Competencies

Strategy is only as effective as the business can execute it. However, even the most well-planned strategies can fall short of expectations. In such cases, what options are available to businesses? This article explores the importance of building robust business competencies and provides strategies for alternative actions when primary plans do not work.

Building the Fundamental Competencies

Before diving into strategic plans, it is crucial to build the fundamental business competencies. These competencies form the backbone of your operations and include marketing, sales, product development, and supply chain management. By strengthening these areas, businesses can gain a competitive edge and improve overall performance.

Kodak vs. Fujifilm: A Business Competence Comparison

The tale of Kodak and Fujifilm provides an enlightening example of how business competencies can influence success. Both companies provided physical photo services once, but Kodak focused on film, while Fujifilm recognized the shift to digital photography. Fujifilm’s strategic shift to digital services aligned with their business competencies, ultimately transforming their business. This highlights the critical role of business competencies in driving success.

Oppō: Capitalizing on Business Competencies

Oppō serves as a compelling case study for leveraging strong business competencies. This company’s supreme engineering team and product managers enabled them to create high-value, premium, and performance-driven yet cost-effective products. By shifting from VCR players to audio devices and eventually smartphones, Oppō demonstrated that a focus on business competencies can lead to significant success. Oppō’s strategy was not just about innovation but also about leveraging their existing competencies to adapt and thrive in a rapidly changing market.

The Role of Strategy in Business Competence

Strategy is how you plan to apply your business competencies to outcompete the competition. It involves both short-term plans and long-term visions. For instance, Tesla’s short-term strategy is to innovate to stay ahead, while their long-term vision is to become the “Starbucks of cars,” offering premium experiences and aftercare. These strategies are not static but evolve based on continuous improvement and adaptation.

What to Do When Strategies Don’t Work

When strategies fail, it is important to explore alternatives rather than abandoning the problem entirely. New strategies can be obtained by studying competitors, analyzing industry blogs, or seeking advice from business partners. Continuous improvement is key; learn from past strategies and refine them to better suit current conditions.

Improving and Testing Strategies

Creating new strategies from scratch can be challenging, but an educated guess followed by a systematic trial-and-error process is often the best approach. Start with a hypothesis, test it, gather data, and refine it until the desired outcomes are achieved. This methodical approach allows businesses to iterate and improve their strategies over time.