Wednesday, August 22, 2007

Image Adjustment? Market Shift? Redefining the Strategic Core

Yes, it is vitally important to stay true to your company's strategic core. However, with technology innovations and globalization changing the business environment at lightening speeds, fundamental redefinition is sometimes a necessity rather than a distraction.

Revamping your core strategy is one of the greatest challenges a CXO can face, and with all the pressure and marketplace uncertainty, it can be tempting to reach for something entirely out of the box — leap into a new market, attempt major acquisitions, or push for massive corporate innovation.

Yet, why not take a calm inventory of your company’s existing strengths and capabilities. Most likely your company has hidden assets that can be tapped to get you through even the most fundamental business changes. These assets generally fall into three categories:
1. undervalued business platforms
2. untapped customer insights
3. underexploited capabilities

Prime example: Apple. When the company’s computer sales flagged, it used its underexploited capability to produce “cool” user interfaces to develop the iPod (and now the iPhone). These new devises now account for 50% of the company’s revenues.

So, if your current growth strategy is no longer working and you're facing the need for a strategic overhaul , before you go flying off into the wild blue yonder, stop a moment to consider if your company has hidden, underutilized assets closer to home.

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