We all want to improve our companies, right? Well, how many of us are focused on both improving and protecting our companies? Probably not as many as there should be.
One of the best ways to do both is to improve the market agility of your business. If your business isn’t agile enough, then you could find yourself running into a lot of trouble down the line. As in much of life, keeping yourself flexible could really pay off in the long run.
Wait. What the heck is market agility?
Market agility refers to a company’s ability to change with the times. Remaining agile in the world of business is extremely important. Perhaps the best way to highlight to you the importance of market agility is to take a look at some companies that didn’t do it very well. A famous example is that of Blockbuster. They are, perhaps, the best example, here. Simply put, their lack of agility made it difficult for them to face the competition of Netflix.
Optimizing your resources
One of the most important (and underrated) ways of increasing agility is to watch where your company are putting their efforts. There are some areas that may be extremely important but could be done much more effectively if you outsource the task and allow your in-house resources free for other tasks. Social media management is a good example of this; you can read more at https://ignitedigital.com/service/community-management/. If you have an entire department that is dedicated to a particular job, then that’s costing you at least a hundred thousand a year. You’ve also paid for all the equipment they use. If the task isn’t being completed as well as it could be, or if the need for that task declines, then you’re going to be in trouble.
Always have your eyes on trends
Usually, a lack of agility can destroy a business when that business faces two things at the same time. The first is the rise in popularity of a particular piece of technology. The second is a competitor that springs out of nowhere, taking advantage of that technology. You need to keep a sharp eye on both the technological environment and the competitive environment. Tracking customer behavior along with these three are also important. As you can read about at http://uk.businessinsider.com/uber-versus-taxi-best-deal-cheaper, ignoring all three of these elements is exactly what is causing many cab services to be in trouble with the rise of Uber.
Consider where your profits come from
Of course, the reason Blockbuster failed against Netflix wasn’t as simple as “they weren’t as on-demand as Netflix”. There was a problem inherent in their business strategy. A huge chunk of their profits came from charging their customers late fees. Services like Netflix made the need for late fees obsolete; you can read more about how this affected the businesses around it at https://forbes.com/a-look-back-at-why-blockbuster-really-failed-and-why-it-didnt-have-to. So remember to take a critical eye to the areas where you make profit. If it’s even slightly possible that another company could negate it? Then you might need to make serious changes to your structure before it’s too late.