The Need for Change of Focus

In today’s world, macro environmental disruptions and changes in technology and regulation are frequent and affect demand, supply and costs, even as they throw up new business opportunities. Competitive offerings are blurring boundaries of product categories and showing customers completely new ways to satisfy their needs. The world of customers is fast changing too, and their expectations and requirements are being shaped and reshaped by the choices available to them as well as by their life journeys. These changes are not limited to the pandemic and its after effects but have been in evidence for quite some time, well before the pandemic.

In such an environment, it is risky to make choices of business direction or decide how to respond to external disruptions or develop longer term business strategy based on conventional supply side ideas of “industry” and “product category” and market based “just like me” competitors. Threats may not be recognized till it is too late; opportunities may be missed; and the business value may stagnate or even erode. Besides these, the instability of basing business strategy on shifting sands will weaken the organisation and responding continuously to competition moves or environmental shifts will exhaust its resources.

In order to achieve stability and deliver on goals relating to business purpose, growth and profitability, companies need to continuously create better value for customers. Their choice of business direction or paths to get to where they need or want to, and the capability to walk down those paths must be designed to achieve this.

For more information or any questions, contact Manali Shah: manali-exed@iima.ac.in | +91 70690 10183