These things do not usually happen at once, but if there is a day when we received a “hard truth” we cannot let go. You realize that your benefits have been reduced in a significant%, the low number of customers, your market share drops and notes as you go inserting patches that do not lead anywhere. Basically, business survival is at stake and do not know where the blows come.
When this happens, marginalizing startups, we can find 3 levels to qualify and quantify the problem regarding the malfunction of business:
1- Mismanagement: At this point there is not much to explain, still being in the right business model but that simply are not playing your cards right.
2- Do not be able to adapt to new industry trends surface: perhaps no introduction of new products, not digitize any part of the business … .in order, you have to make substantial changes but do not require “full surgery.”
3- You have left to connect with a real market: here already required to redevelop a new business model because your value proposition has stopped working.
You have to be aware that at this point, in a way, it’s like starting over. It is true that there are years of experience behind serving as a base but need to re-break with the established and understand what the new rules governing the market. If you do not connect with your old customers or long ago or a new one you do not appreciate is that your product is no longer attractive and you have to get home and find relevant solutions.
For this you can opt for these actions:
Incorporate 1- or sign specific knowledge: nothing happens to recognize that new knowledge is needed, maybe some years in the sector have made us lose perspective and we produce disorientation. To do this, there are different formulas:
– Profiling to an internal expert profile business models and creating new business
– Hiring the services of a consultant who inspire us confidence
– Hire an expert consultant freelance
2- Action “benchmarking” focused on competition: there is a competitor in the sector that has managed to reinvent itself? We can use something? Observe and study the reaction of the competition can provide some clues and keys to set the new value proposition.
3- Identify the elements of innovation we have handy: At this point, you need innovation. It can develop in many ways so you can start by knowing what possibilities you have:
– Product Innovation
– Innovation in distribution channels
– Innovation in marketing strategies
4- Carry out a new market study “your new customers” may eventually you’ve lost touch with the market itself. It would be important to make a good showing by asking potential customers what their new priorities and what is the most valued in the recruitment of product or service in question.
5- Studying thoroughly mature markets: certain markets may have gone through this process, and there will have clues to how companies have adapted to these paradigm shifts.
Like it or not, we are in times of change. Markets change, the customer needs and new technologies also can create, modify or revolutionize the industry in which your company operates. We must continue with his guard so as not to react too late, and when we have spent many resources in trying to continue with the same business model.