SUCCESS STORIES / JUL. 17, 2014
version 3, draft 3

Secrets of Successful Companies in a Down Economy

 Companies such as Microsoft, Google, Amazon, P&G, Nordstrom and other big names seem nearly immune to an economic downturn. In this economy, most companies are looking for ways to gain meaningful business advantages while still making cuts, restructuring, and going through mergers. And the entrepreneur that can find places to make cuts in his or her company that are strategic enough in nature for their company’s growth, will actually see their company flourish in lean times just as the big names do. How do they do it?

A company’s strategic coherence is the foundation on which the other parts build. A successfully coherent company is one that is clearly focused on its market position, as well as its unique elements that work together as a solid system with its product and service portfolio. A company that is considered coherent will have a variety of products and services that will compliment the company’s strengths in connection to its market position.

There are three elements that make up a company’s foundation of strategic coherence and allow it to maintain strength in a down economy. These include market position, the company’s unique system, and its product-service portfolio. If any of those elements are missing, a company’s foundation can’t remain strong enough for it to experience strategic coherence.

Since larger companies are typically slower to adapt to changes that take place over time and within their industries then smaller ones, it’s especially crucial for them to have the benefit of strategic coherence. Even though changes are made slowly, the strategic coherence always serves as a point of focus for where the company needs to be -- even in the midst of moving slowly.

Another significant secret of successful companies is a great capabilities system. This particular system will have a major impact on how effectively customers are served, and the consistency of the quality of the service or products that they receive. These specific capabilities are exclusive to the company in that there are few others that will be in a position to compete much less improve them.

Even so, these items must work together properly for customers to get quality customer service on a regular basis. With customer satisfaction being the key to driving sales, excellent customer service is considerably more important than the products or services that a company offers.

Finally, one more significant secret involves strategic decisions in relation to the products and / or services that companies choose to offer. Every product or service that a company decides to sell must be able to fit within the company’s capabilities system and market position. When leadership decides that it’s time to phase out a product or service, or in the case of larger companies, a decision is made to sell off a division to another company, it generally brings growth. The above is just a snapshot of a few of the things that successful companies do to maintain their influence. There are also the long-term impacts to such decisions. And these will create value and make the company a more successful market place winner – even in a down economy.

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