Business Strategies Under Attack – 5 tips to safe guard your business
The flow on effect of consumers turning to digital technologies on smartphones and tablets to get what they want, when they want, is shaking up big business. Start-ups are now focusing on unbundling your services at discounted rates to meet customer demands.
In a recent blog post, CBInsights provided an analysis of online startups that are focused on unbundling services provided by the leading hotel groups such as Marriott and Hilton. A staggering 52 startups were identified as disrupting the chains' service offering. The extent of this unbundling and disruption is shown above.
Disruption of business models is a common theme and is essentially inevitable. So, the question is…how do you combat business disruption? Here are our five tips:
- Understanding customers' needs - Constantly strive to understand the needs of your clients and focus on how to meet their needs in a changing environment. Take some time to think about how you are going to extract what your clients want. Some methods could include an annual client survey, client interview, annual review questionnaire, analysing customer trends on a regular basis and being involved in industry forums that have their finger on the pulse.
- Cast the competition net wide – As the CBinsights article shows, casting the net far and wide when understanding your competitors is important. Consider whether your clients want your product or services unbundled, assess whether there are online competitors providing it at a reduced cost.
- Make the most of client contact – Identify the touch points that occur during your customer transaction and then consider what can be done to differentiate yourself from your competitors.
- Cement your customer relationship - Give thought to how you can build on your customer relationship at each of your touch points so that your customer remains yours.
- Review your business strategy - Be ready and willing to adapt to change. Speak with your team and advisers to take a bird’s eye view of your business trends and how your business strategy may need to change to accommodate customer trends, industry changes and new competitors.
If you would like some assistance with the development or review of your business strategy or assistance in forecasting and analysing business trends, please contact your usual Hanrick Curran advisor or contact Matthew Green, Matthew Beasley or Angela Winton on 07 3218 3900.