In today’s complex, volatile, uncertain and hypercompetitive business world product life cycles are shortening. I have to say that companies can create transient competitive advantages due to the increasing changes in technology and services. This transient competitive advantage consists of several phases such as launch, ramp up, exploit, reconfigure and disengage. Companies must create temporary advantages. This means that leadership must manage the waves of transient advantages well.
On the other side, many companies have failures in business due to the focusing on the short-term issues, new competitors, poor leadership, changes in technology, services and customer demands.
Therefore, leadership must begin to move toward finding the next generation advantage and making healthy disengagement to keep the business.
Leaders should develop and implement an early warning for their organisation before competition erodes their advantages. This will give leaders a valuable time to spend networking, exploring opportunities, building new capabilities and training and developing the skills.
What are the early warning signs of fading advantage for a company?
- People don’t buy their company’s products and services.
- Customers are finding cheaper or simpler solutions that are more valuable.
- Management is dealing with internal politics and bad news.
- The growth is slowing or reversing.
- Margins are getting low and no growth in return.
- Effective people are leaving the company.
- There are a few innovations in the last years and they don’t create customer value.
- Customers don’t interest with company’s new offers.
- Competition is emerging from different places.
- The company is cutting back on compensation and benefits.
Therefore, companies must work with well-experienced senior leaders or experts to start new strategic initiatives such as developing skills, installing new technologies, offering new products and services, going to global, implementing systematic and competitive marketing and innovation alternatives, building and exploiting many transient competitive advantages at once to keep their business in continuous growth and profitability.
Leaders should take preventive measures before competition erodes their advantages.
What are your thoughts?
I would like to read your comments.
Yusuf is a senior business and innovation consultant. He has a proven track record of success in multi-industry. He established Innovation Turkey as an innovation training and consulting services. If you want to solve your company's problems about startups, new business design, new product design, organizational alignment, leadership development, innovation management, growth and profitability and create operational excellence across the value chain and industrial operations in Turkey or abroad, contact Yusuf through Linkedin or call from +90 533 3938268.