“There is one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else”
Sam Walton, founder of Walmart
I know that manufacturers will continue to face a more intensified competitive environment, the softening of local demand, increasing input costs and decreasing profit margins and increasing social and environmental expectations in the business world.
I asked some questions to myself and answered them. Let’s look at;
What are the basic forces for weakness in creating a great customer value for a company?
- Ineffective management in strategic marketing.
- Capability in developing a value proposition.
- Capability in developing a positioning strategy.
- Clearly there is a movement or shift from mass production to personalisation and customisation.
- More intensified competition between companies is accelerating.
- Technology that transforms entire business models is one of the key factors.
- Changing skills needs and imperatives in today’s complex and uncertain business conditions.
I know that innovation is more about the customer than the producer, more about the marketplace than the laboratory and more about the business transformation than technology in a systematic and competitive way better and faster than competitors.
Clearly, productivity does not equate to efficiency; it is linked with innovation and transformation in business capabilities such as skills, technology, operational excellence, organizational agility and competitiveness. I have to say that foreseeing and better serving customer needs and creating organizational alignment provide the key to the profitability and growth in the manufacturing operations.
- They are weak in innovation management and productivity.
- They are weak in skills and organizational alignment.
- They are weak in serving customer needs.
- They are weak in competitive intelligence.
- They are weak lean management.
- They are weak in competing by creating unconventional customised business offerings by linking products and services to meet customer demands.
Are they investing in people and skills?
According to my experience and know-how, manufacturing companies will face big competition for talent, wage pressures and systematic and continuous upskilling the people within the organization. I know that many companies and their leadership are sleeping and they are wasting their time. Clearly they have to invest in the new constellation of skills required for high-performance, empowered workplaces, creativity, problem solving, collaboration, partnering, competitive intelligence, strategic marketing, systematic and competitive innovation management and global value chains.
- They are weak in talent management.
- They are weak in skills management.
- They are not competitive in developing and implementing a well planned HR strategy for the short and the long-term.
- They don’t know the critical importance of the effective leadership, talent management and long-term strategic marketing and innovation management in today’s hypercompetitive business world.
According to my experience and knowledge, I have to define that such companies can fail in the long-term due to their ineffective leadership and management if they cannot develop and implement competitive talent management and strategic marketing and innovation management under a truly effective leadership. I am sure that their gross operating profits are under pressure!
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