Making bold moves
The pandemic crisis is in its early days and yet the gap between companies has already begun to widen. In terms of profitability, those companies that have consistently taken strategic initiatives are beginning to step away from the rest of the pack. Even within those industries that have suffered a major demand slump such as retail, companies that have undergone transformations in their business models have improved their odds of beating the competition.
By transformations, I am referring to improving the resilience of their business models to ride trends. Such trends were already underway pre-COVID and are now accelerating.
An example is the continual change in the retail landscape. A BCG analysis about the future trend in retail is nothing earth shattering. What is noteworthy is this analysis was first published in 2013. As the performance of companies such as Shopify will attest to, the crisis has turned on the afterburners. And business models will continue to adjust. In the US, Amazon is rumoured to be acquiring shopping malls and converting them to fulfilment centres. A smart play to improve deliveries given the depressed valuations of such properties and their central location within communities.
The crisis presents a unique opportunity to make some bold changes to your business model.
If your business is experiencing a middling performance, i.e., neither thriving nor suffering materially, then the pandemic is an opportune time to adopt major projects such as a digital transformation or reshuffle resources towards new higher growth markets.
If your business is suffering from the downturn, then it is an opportunity to strip out non-core operations and radically restructure the business.
If your business is ahead of the curve, then it’s a ripe moment to scale operations, either organically or through acquisitions. Business valuations are heading downwards making acquisitive returns increasingly attractive.
To read more (and see the BCG infographic!), please click here
To reach out and have a chat with me about this, please email me at Cornell@qualia8.com. My LI profile is here