Three imperative for business growth
What supports the success of companies that are committed to business growth is that they do not try to play better games than their competitors but they play different games. These companies compete with different strategies (or business models) and aim to compete with different rules in their markets so they must avoid competition.
Chance
The innovation of the business model is to offer the same product (or service) with their main competitors but emphasize the different attributes of those emphasized by a traditional competitor’s traditional business model – in other words they sell it based on different value propositions. So while Seiko and Timex sell their watches based on accuracy and functionality, swatch takes the market with a storm by emphasizing the benefits of design and mode! Swatch does not find a watch – it redefines what the product is and why customers have to buy it and find a great opportunity for business growth.
Vision
The behavior of each individual is conditioned by their individual’s mental model in the world. The most dominant mental model owned by any company is the perception of what business – and consequently its vision. Vision (or definition) that the company provides business conditions how the company and their stakeholders see their business. Awards about how vision can be used to motivate and withdraw support for businesses cannot be underestimated. Note what Robert Polel said, CEO of Gucci Group to explain the Gucci movement into things like playing cards and chocolate: “We are not in the business selling bags; we are in a dream sales business!” Simply stated, as a picture of a new world and it is better that the business you want to make, a vision of being a strong leadership strategy that underlies business growth.
Scale scale
Increasing a business model with a typical value bid allows companies to achieve rapid growth. But also serves other useful purposes; it protects it from competitive confrontation. Information communication technology can let companies improve new business models and so ensure sustainability. Cemex, Mexican cement company, redefining the way customers buy cement using ICT to send timely cement to enable their customers to reduce their prices to end users. Today Cemex is a big company in the best performance in the cement industry!
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