Woolworths, W. T.
Grant, Co and J. C.
Penny is one of the top ten retailers in the United States. S.
In 1970, the industry overturned Wal-Mart and Target-
Offer more options, faster checkout and lower prices
They were quickly replaced.
Amazon is the biggest industry breaker today, but they will also be upended over time.
In order to make the future of the industry incumbent-
They need to take offensive rather than defensive tactics to prove their expectations for disruptive challengers.
By maximizing the profitability of core businesses, they can fund the growth of new business models that adapt to future demand and market dynamics.
I like to call this process self. disruption.
To further investigate the idea of self
Interrupted, I caught up with Brad Bauer, partner of the consulting firm FCB Partners.
"Most companies are focusing on core innovation in isolation," Brad told me;
They are using standard textbook methods, but they are frustrated that their organization is not acting faster or becoming bolder.
"From a financial and marketing perspective, it's no different from what I 've seen working with retail companies.
I have put some high
Thinking about how retailers start themselves
Destroy their organization.
Core innovation is not enough.
Focus on edge innovation.
Many companies are innovating around improvements or even disruptions to their existing core businesses.
They perform detailed profit analysis to align existing business processes with customer expectations, improve operational efficiency, and introduce new technologies to automate and streamline resources.
The fierce aspects of their business.
They have improved on what is already there, and sometimes significantly.
This is a core innovation. It is not enough to guarantee the long-term development of a company.
The survival period against the destructive challenger.
The company must also carry out edge innovation, try and design a new business model, operate under a separate leadership, with the goal of providing 10 times the return and ultimately surpassing the core business.
Walmart is an example of a retailer that needs to stop watching and start copying.
While using core revenue to fund their marginal innovations-Wal-Mart's internal development-they have improved their core operations very openly.
Acquisitions such as Com and Jet.
Com, Flipkartand bonobos.
Cultivate a culture of innovation from top to bottom.
Retailers blame technology, weather or other retailers for reducing revenue or competition in the current situation.
All of this is a symbol of the basic fact that the world is changing and the organizational structure of retailers needs to be adapted.
Introducing the chief interference officer to challenge all aspects of the intersection of business and work
In terms of human resources, operations and technology, internal spoilers are encouraged and a platform is provided for them to present ideas.
Change the performance measurement system, reward employees to try new ideas and tolerate failure when some of them don't work.
Achieving these goals does not solve an organization's own problems, but it will certainly help remove the barriers to change.
Learn from other markets. Being laser-
Focusing on a market is a good way to compete in major markets;
However, this approach makes it possible for companies to miss important lessons from other markets, especially those that are developing.
If enterprises want to succeed in the continuous development of market competition, they must havelow-
Because their consumers cannot afford any unnecessary costs.
In this case, the same strategy, allowing a company to overcome the basic barriers to entry in less developed markets, becomes the secret to disrupting another more developed market.
If a company can adjust their model and compete in a developing market, then they
Can subvert the industry's existing enterprises.
For example, Wal-Mart's experience competing with Amazon in India shows that it will be able to compete with Amazon in the e-commerce spaceBusiness market.
Manage the expectations of investors.
Investors who buy shares through mutual funds, bonds or any other asset buy shares for specific reasons and have clear expectations of how their shares should behave.
Any strategic change that is likely to leave the company out of normal operation or on the edge of knowledge can cause investors to worry, which will naturally have a negative impact on the stock price.
To avoid this, companies can: conduct a strategic review of their business before announcing plans to implement the review proposal and communicate the findings to investors.
Establish the correct record.
There is no better way to instill confidence than to predict the future, and then to look at the future in a better way.
An easy way to do this is to be realistic about revenue targets and achieve them.
Before announcing a change that will take a long time, the company needs to master this
Long-term impact on the direction of the company.
• Control revenue calls.
Companies should release data before the earnings call to explain every question they may be asked.
In this way, they can avoid spending the entire revenue call on GAAP accounting that analysts don't care about.
Instead, they can focus on the board's strategy and how it might affect the bottom line over the next year, three, five, and ten years.
Whenever a retailer finds itself making excuses for bad performance and the reason is beyond the control of the board, it should question what the real reason is.
If there seems to be a lack of strategy, retailers need to act quickly, stop managing through variance analysis and start managing through strategy execution.
All of this is key to retailers and other proprietary companies.
Innovation on the edge, not just the core.