Cutting costs won’t be enough

When revenues and margins start to decline what is the most common counter action from Boards and Executive Teams? Fix profitability by lowering the cost base.

Current market-conditions require more than cost-cutting

We have a transformative business landscape. But regardless if the market conditions are stable or characterized by volatility, uncertainty, complexity and ambiguity, companies must always strive to:

• optimize the customer experience (CX)

• improve current offerings as well as shape new revenue streams thru innovation

Many studies highlight that a significant number of successful companies were launched during a recession or bear market*. Why? Innovators are seizing the opportunities of changing consumer & customer attitudes and behaviors. Business leaders must in other words do more than cost-cutting.

Current competition is not your future competition

Most executives think they know who they are competing against — the major brands in their field or entrepreneurial “ankle biters” with a new technology or business model.

But what happens when your competitors aren’t who you think they are? Specifically, how do you devise a winning business strategy when you are competing not just against the major brands and “the ankle biters” from your industry, but also against the Innovators that just follow the ever-changing expectations of your customers? Customers that engage with products and services far beyond the established boundaries of your industry.

These innovators will be the next set of successful companies and they are in the making now, with great CX and stunning offers that meet the demands of today and tomorrow. And they do not care about industry boundaries.

Keep two ears to the ground

The last years have been challenging, and there is no sign of stability in the near term. The ultimate test of your actions for profitability is not only how well you save money or stick up against what your rivals are already doing, but also whether you are able to meet the changing demand that comes with new consumer & customer behaviors and attitudes.

* a decline of 20% or more of a major stock market index for a sustained period.