Thursday, October 1, 2009

Winners and Losers

I recently read a wonderful rule of thumb about how to pick winners and losers in business strategies.

This rule of thumb was for purposes of investing in companies. The basis of the idea is that technology is fundamentally changing the way businesses and consumers behave.

If the strategy is defensive - protecting your current business model - you will definitely lose.

If the strategy is to aggressively extend your business model and go after new activities enabled by new technology, you have a much higher chance of winning.

So the choices presented are a certainty of failure versus and possibility of success. Not really much choice.

Does this mean I shouldn't try to protect my current customer base by providing great service and better products. I think it means I should try this but with newer tools and communication methods.

I believe the great change technology is making is the way we all communicate with each other.

How do you think your company would be seen by investors based on this criteria?

Think you might want to consider some changes?

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