Some companies have shown consistency in bringing out superior products, earning profits, and thus sustaining their market position.
Profitability is the key to success in business. Generating sustainable profits is the only way out for today's companies if they want to survive in an intensely competitive globalized industry. Having realized the importance of being profitable, companies are always on the lookout for profit zones, i.e., areas where they can earn huge profits and survive. Old is not always gold, especially when we talk about business strategies. Gone are the days when a huge market share usually translated into huge profits for companies. The dismal performances of big corporations like DEC, GM, Ford, United Airlines, Arthur Anderson, Kodak, and Xerox, to name a few (all leading companies in their respective industries at one point of time), proves this point. The 1980s game of market share wars and the product-centric approach towards the business are rapidly vanishing. `Yesterday's profit zones' are fast becoming `today's no-profit zones'. It's high time the organizations reinvented their strategies and shifted their focus from products to customers and further start building new business designs based on the priorities of customers.
This puts a major thrust on today's organizations to innovate continuously for their survival and improving growth prospects. However, as a matter of fact, there are only a few companies, which have been successful in maintaining their profit zones/keeping their competitive advantage on a sustained basis by continuously reinventing their business models. They made these changes in response to the changing needs and demands of their customers. |
