The economic upheaval over the past several years has caused a few of the more successful companies from the past to lose momentum making them vulnerable to the competition. This is particularly true in the financial services sector where several of the large, “too big to fail” companies and TARP fund recipients have been over reacting in the short term by retrenching, selling off assets and in many ways stumbling forward without a very cohesive long term strategy. Smart companies recognize the old Chinese adage “where there is crisis there is opportunity” and are investing (instead of retrenching) in the pursuit of an improved strategic advantage and a unique value proposition. They are also very mindful of the impact that their short term decisions will have on the company over the long term.
Last October I came across an excellent article called “Sound Long-Term Strategy is Key, Particularly in a Crisis: Harvard’s Michael Porter” (who is my hero on the topic of competitive strategy).
There are a few excerpts from the article that I found profound:
“It’s times like these when tremendous success can be achieved. It’s times like these where companies can shift positions in the marketplace. It’s time like these when leaders can become followers, and followers can become leaders, because we are in a period where everything ins now going to open and unfreeze.”
He further states that, “In an economic downturn, you have to be clearer about your strategy than in normal times.”
He emphasizes that in these trying times companies have more flexibility in making unprecedented moves and investments that they otherwise would not be able to make because they aren’t under as much scrutiny as they are in normal times.
Bringing Clarity to your Organization’s Strategy
As a student and practitioner of competitive strategy, I have developed a proven approach to developing a Strategic Marketing Plan and would be happy to share an outline of my recommendations with you if you email me at firstname.lastname@example.org or visit my web site Strategic Marketing Plus. I’d be glad to share with you so you can redefine and clarify your company (or divisional) strategy. And finally, one of my favorite business quotes:
“The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic.” — Peter Drucker