Strategic Management
Cutting Costs Strategically
February 12, 2025
This article discusses the ten qualities needed for companies to stay ahead of the competition and win the race for the market in the next decade. With so much of rapid change and accelerating trends, it is important for companies to be, the biggest and the best or else they run the risk of getting left behind and becoming also ran companies.
- Adaptable
The winners of tomorrow will be those companies that are best at identifying and anticipating market shifts and managing complex and multi-company systems. The need for shorter cycles and faster reaction time is greater as the pace of change is rapid and only those companies that can adapt to it will succeed.
- Global
It is a fact that everybody is competing with everyone from everywhere. This means that the future markets for growth in Asia would take many business leaders out of their comfort zones. Hence, what works in Munich might not work in Mumbai and therefore there is a need to understand the fluid marketplace.
- Connected
As the world gets smaller because of greater integration and better communications technologies, there are changes in the realm of strategy, which the business leaders of tomorrow must embrace. This means that the companies of tomorrow must deal with newer forms of customer behavior and newer business models.
- Sustainable
With the ever-looming threat of climate change and environmental catastrophe, businesses need to pursue growth strategies that are sustainable and ensure that they use limited resources more efficiently. These strategies lead to all round stakeholder development instead of profits for the firms alone.
- Customer First
For companies to achieve greatness, they must develop deep and lasting emotional bonds with their consumers. They need to transform consumers into repeat buyers and in some cases, they need the customers to be brand evangelists which means that the customers are the best source of advertising for the companies.
- Fit to Win
The art of execution is one of the core drivers of competitive advantage and the truly great companies strategize in a manner that drives improvement in the critical areas identified for success. These companies have flat and agile structures that speed up the flows of information, improve decision-making, and have sophisticated pricing models.
- Value-Driven
It is a fact that companies must create value for all their stakeholders, this is something that is ageless, and timeless which makes the companies and their legacies enduring for all stakeholders. The value that a company creates has two components, which are earnings and growth. It is impossible to separate the two and since they work in tandem, the value that the company creates must be both short-term profits and longer term success.
- Trusted
Though trust does not appear on a company’s balance sheet, it is the most valuable asset for the companies. Hard to build and harder to sustain as well as easier to squander, trust reposed by the customers determines how successful a company is over the longer term. The digital revolution offers never before opportunities to expand and accelerate reputational aspects of the companies.
- Bold
If companies do not evolve with the times, they run the risk of becoming redundant. Hence, companies need to be forward looking and reinvent themselves to keep pace with their competitors. These companies would not be blindsided and outpaced by competition. This means that companies must experiment on a continual basis and not be afraid to embrace radical change from outside and from within.
- Inspiring
Finally, the business leaders of tomorrow are inspirational figures much in the mold of religious and mythological figures from history. This means that epic leadership is needed from the leaders of tomorrow as they go about setting the agenda that their followers can adapt and emulate, if possible that translates into an inspired workplace as well as external respect.