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4 Innovation Strategies From Big Companies That Act Like Startups INNOVATION ENGINE
WRITTEN BY: Soren Kaplan
ESTABLISHED COMPANIES HAVE A REPUTATION FOR BEING WAY TOO
BUREAUCRATIC TO BE INNOVATIVE. BUT TAKING A PAGE FROM STARTUP
CULTURE, SOME HAVE FIGURED OUT HOW TO BECOME AGILE AND FAST-
MOVING DESPITE THEIR SIZE, SOREN KAPLAN WRITES.
9 Comments inShare
Stodgy. Slow. Bureaucratic. Big companies get a bad rap when it comes to innovation.
It’s easy to focus on the failures: Blockbuster, Borders, Blackberry, and Kodak.
It’s also easy to become enamored by the latest fast-acting upstarts likeUndrip, Tout,
and Glyder. For many, “innovation” has become synonymous with small, agile, and
social.
But there’s a quiet revolution happening in corporate America. Big companies are
applying startup strategies and tools to jump-start innovation. It’s not about pontificating
on the innovation process. It’s about being lean, focused, and maniacally strategic.
• Intuit organizes multi-day “lean start-ins” that gather “intrapreneurs” together from
across the company to teach them how to apply rapid experimentation to create new
products, services, and business models.
• Kimberly-Clark promotes one-day “expert acceleration sessions” that bring hand-
picked outside “thought leaders” face to face with business teams to bust mental models
and create game-changing strategies.
• Whirlpool uses a network of innovation mentors (also called i-mentors), who are loaded
with innovation tools and guidance to help business teams focused on challenging
market “orthodoxies.”
Big companies that behave like small startups focus on two things. First, they accelerate
the speed of innovation, just like a Silicon Valley incubator. Second, they give internal
businesses and teams an outside-in perspective, similar to the type of reality-checking
that comes from advisory boards or venture capitalists.
Here are four strategies that anyone can use to start-up, start in, or jump-start their
innovation:
1. FOLLOW CUSTOMERS HOME
Intuit’s innovation success is tied to a value for finding and savoring customer surprises-
-unexpected insights about customer needs, problems, and desired experiences that
can’t be anticipated or pre-defined. That’s why the company does customer “follow-me-
homes,” where everyone from CEO Brad Smith to engineers and marketers immerse
themselves in the customer’s natural environment to see how things are working (or not)
in the real world.
2. TAP OUTSIDE COLLABORATORS
Kimberly-Clark knows that insular thinking is the death knell of teams and organizations.
That’s why they work with their businesses to define specific problems and opportunities
that need a jolt of external insight. They then recruit a small group of “thought leaders”
from other companies, universities, startups, or think-tanks to join a collaborative
innovation session for a day to lend their expertise. These deep dives deliver strategic
and practical insight that would otherwise take months to gather through traditional
research.
3. STAY SMALL
Big innovations don’t necessarily have to begin by taking big risks or making bet -the-
farm investments. Intuit, for example, provides guidance to its “intrepreneurial” teams
that they should use the “lean startup” model. It’s not about waiting around for senior
leadership to sponsor and fund the next big idea but rather rapidly testing ideas to
identify the things teams can do to have the biggest impact.
4. USE THE BEST, INVENT THE REST
Speed and agility come from realizing we don’t have to invent everything ourselves--
either the approach or the innovation itself. When going after breakthroughs, it’s
essential to dismiss the “not invented here” stigma, as Apple learned the hard way with
its foray into mobile maps. There’s no shortage of tools and templates out there. The
strategy is to use the best--like the one-page Business Model Generation tool (from the
book with the same name)--and then adapt it or combine it with other approaches that
work within the specific company context. Same goes for the innovation itself. The most
innovative companies don’t always wait to build a new technology themselves--they look
outside, find what exists, and then go from there.
These big-company strategies aren’t about ivory-tower innovation departments, wacky
hats, or Kumbaya creativity. They’re focused on pushing entrepreneurial thinking and
practices into the places they’re needed the most--inside established businesses. And
their explicit objective isn’t about reaching that elusive holy grail of creating a “culture of
innovation” (though it can be the by-product of these efforts). Their strategies combine
strategic thinking with the practical tools required for driving forward new products,
services, and strategies, all focused first and foremost on leapfrogging to the next big
thin
What Are Two Strategies Commonly Used by Multinational
Companies? by Steven Symes, Demand Media Multinational companies do not need to
be large, but can be small businesses that
operate in several countries at the same
time. Because of the variety of types of
multinational companies, which differ in
industry, size and other elements, not all
multinational companies engage in the
same business strategies. Insourcing and
purchasing foreign competition are two
strategies commonly used by
multinational companies of all types.
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Insourcing
Insourcing takes place when a
multinational company moves a certain
business practice or set of practices to
another country. Instead of contracting
with another company in a foreign
country, as in outsourcing situations, the
company keeps the business activity
within the company. The company either
uses an established subsidiary in another
country, or sets up a subsidiary in a
specific country. The other country must
present certain advantages for the
company to participate in these certain
business practices there and not in the
multinational company's home country.
Benefits of Insourcing
Insourcing provides a variety of benefits,
depending on the company, business
practices and where the company locates
the business practices. Some areas of the
world provide less expensive labor,
making the production of products such
as textiles or electronic components less
costly. A multinational company may
locate some activities within a certain
country to avoid paying tariffs or other
penalties imposed on goods imported
from outside of the country, or to benefit
from tax incentives offered to businesses
operating in the country. A company may
also want to tap into the unique skill sets
found in a particular area, leveraging
those skills for certain business practices.
Purchasing Foreign Competition
A multinational company may not
operate in all of the countries in the
world, choosing instead to operate and
even sell its goods and services in only
certain parts of the world. This decision
may be due to lack of interest in the
products or services in certain areas, the
company's knowledge of market
conditions and cultural forces in certain
parts of the world, or the presence of
competition and barriers to entry in some
foreign markets. An international
company may decide to purchase foreign
competition to overcome some of these
challenges.
Benefits of Foreign Purchases
When an international company
purchases a foreign company that is a
competitor, the international company
benefits in several ways. One of the most
obvious benefits is that the company
removes a competitor from the
marketplace, even if the two were not
directly competing at that point in time.
If the company did not previously have a
presence in the country or region where
the newly purchased company operates,
the international company expands its
sphere of influence as well. The
international company also stands to
learn from the business practices of the
newly purchased company, including
how to best conduct business in the
cultures of certain parts of the world
5 Big-Business Growth Strategies Small Business Can Use James Clear, Passive Panda, Recent Posts
Related Keywords: growth strategies
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Eventually you want your small business to grow into a big business, right? If that’s true,
then learn which big-business growth strategies might work for you.
Here are five growth strategies that small businesses should consider. Not every strategy
will be right for your situation, but some of these might offer an opportunity for your
business.
1. Market segmentation
“Market segmentation” simply means picking a sub-set of the entire marketplace that you
can organize your sales efforts around. Out of all the people in the world, who will you try to
sell to?
Most big businesses are good at carving out their corner of the market. Then they do
whatever they can to own that space.
Red Bull gets its energy drinks in front of a young, adventurous crowd: its segment of the
market. Have you wondered why Red Bull owns a Formula One racing team? That’s why.
Pepsi was losing its battle with Coca-Cola to become the heavyweight cola company.
Instead of trying to beat Coke at its own game, Pepsi focused on a young, fun-loving
demographic. Many Pepsi commercials show younger music stars, celebrities or other
young status symbols.
In other words, Pepsi stopped targeting the over-30 crowd and segmented its market. Coke
is still the top dog, but thanks partially to market segmentation, Pepsi has built a very
successful brand as well.
Most small business owners would be happy with building the next Pepsi, but many are
afraid to eliminate part of a potential market. It can seem scary, but you need to focus on
your core customer if you want a clear path to growth.
Segmenting your market comes down to making choices. Who will you serve? Who will you
avoid? And which segment can you focus on to improve profitability?
2. Leveraging partnerships
Some small business owners love to complain about how they can’t compete with
the vendor relationships that the big guys enjoy. It’s true you can’t “pay to play” like
the Fortune 500s, but you can leverage partnerships in a savvy way.
For example, let’s say your small business makes tennis balls and you have a technology
that makes the balls bounce better and last longer. You have a great product, but you don’t
have a manufacturing facility, a distribution channel or any of the other parts of the tennis-
ball supply chain. All you have are great tennis balls.
You may not be able to compete with the big industry players like Wilson, Penn or Prince for
sponsorships or tournament partnerships, but you could partner with a tennis-ball factory
and a distribution company. In fact, you could partner with them without having to pay a
cent for your own factory or distribution. Just pay your partners a portion of the profit every
time you sell a tennis ball.
The result? You negotiate for mainstream production and distribution without paying the
huge upfront cost of building a plant or hiring a shipping company. Now you can focus on
selling tennis balls instead of worrying about making them.
Big businesses can pay for partnerships up front. Small businesses have to negotiate for
partnerships that pay per sale.
3. Use checklists
Big businesses have massive facilities, complex supply chains and large equipment.
Managing the day-to-day operations in these environments is too complex for one person.
There are too many variables to track.
Guess what? Small businesses are the same way. Small business owners have to wear
many hats. If you don’t hold yourself accountable and remind yourself to do something that
“brings home the bacon,” then it’s easy to get caught up doing things that aren’t essential. In
the rush of a normal day, it’s also easy to forget to do a critical task.
Take a page from big business and develop process lists or checklists for specific tasks and
jobs. Give yourself a guide to success and a reminder to do the essentials each day.
4. Acquisitions
Perhaps the primary way that most big businesses grow is through acquisitions. Before you
think I’m off my rocker by suggesting this move for small businesses, let me explain.
First, acquisitions are tough. You can easily break the bank with one bad purchase. That
said, acquisitions can be a massive source of profit and a means to growth if you make a
few key moves.
You know what’s a good buy in your industry. Follow tip No. 3 and keep to a specific list of
characteristics that you’re looking for. Don’t let emotion or ego play a role in a major
purchase. Stick to the checklist.
Secondly, do you have the budget to buy up everyone in the industry? Probably not. I’m not
suggesting that you buy something you can’t afford. But you can afford some businesses,
especially those that you can improve. Don’t dismiss acquisitions just because you’re small.
5. Become a leader in the industry
Big businesses often make their name by leading an industry. They make moves when
other businesses sit by the wayside.
I was recently talking with the employees of a large distribution company that wants to do
business in China. There’s just one problem: The distribution company ships products for
other companies and those businesses don’t trust the distribution channels in China yet. As
a result, the distribution company isn’t selling in that region.
If there are no products to ship to an area, the company doesn’t set up distribution in that
area. But if there’s no reliable distribution network, nobody ships products. It becomes a
chicken or egg problem where neither side wants to move first.
So what does this company do? They say, “We know you don’t like the distribution there, so
we’re going to fix it. Then, you can give us all of your business in China.”
Is it a bold move? Yes.
Is it an expensive move? Yes.
Is anyone else currently doing it? No.
Does that mean that there is a huge opportunity for growth? Yes.
What’s the lesson for small businesses? Don’t be afraid to solve the hard problems that
everyone else avoids. There is a lot of money to be made when you’re the first person to fix
something.
James Clear is the founder of Passive Panda. He is an award-winning writer on business
strategy and entrepreneurship and has delivered speeches in the United States, Britain and
Switzerland.
The Top 10 Strategic CIO Issues For 2013
Bob Evans, Oracle
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Perhaps no C-level position has undergone as many changes in expectations,
approaches, and philosophies during the past few decades as that of the Chief
Information Officer.
And the turbulent forces shaping businesses in today’s always-on global
marketplace promise to accelerate that ongoing evolution. In that context, I’ve
put together a list of what I believe will be the top priorities for strategic CIOs
in the coming year.
As you’ll see, each of these 10 is rooted in change, and calls for the CIO to be a
leader instead of a follower; a disrupter instead of a go-alonger; and a
business-driven executive instead of a tech-focused manager.
OracleVoice: The Deadly Cost Of Ignoring Big
Data: $71.2 Million Per Year Bob Evans@Oracle
OracleVoice: Can CIO
Turbocharge NASCAR Revenue? Bob Evans@Oracle
Several themes reverberate throughout: analytics, breaking down silos, social,
the cloud, and particularly customers, opportunities, growth, and innovation. I
hope these prove helpful, and please share your feedback in the comments
section below or on Twitter at @bobevansIT.
1) Simplify IT and Transform Your Spending: Kick the 80/20
Budget Habit.While surely not as sexy as Social and Business Analytics and
Cloud, this bold decision to take an entirely new approach to IT infrastructure
is the one and only way CIOs can unlock the funding necessary to pursue those
snazzier and unquestionably vital new initiatives. Far too many companies
today find that they need to devote 70% or even 80% of their IT budget just to
run and maintain what they’ve already got, leaving as little as 20% for
innovation. And if you wonder sometimes why you’ve got precious little IT
budget available to fund growth-oriented innovation, the answer becomes
pretty clear by looking at the list of usual suspects that have brought us to this
point: server sprawl, massively underutilized storage resources, unproductive
data centers, labor-intensive integration requirements, and a near-endless list
of “strategic” vendors. The IT policies of the past that resulted in the 80/20
trap are simply no longer able to meet the needs of today’s intensely
demanding and always-on business world, and are indeed becoming liabilities
not just because they’re inadequate but also because they suck up vast
percentages of the IT budget and make it almost impossible for CIOs to fund
essential new efforts in analytics or cloud or mobile or social. CIOs need to
determine which vendors are only exacerbating this problem, and which ones
offer modern alternatives that are cheaper, faster, and smarter. My
POV: CEOs should tie most or all of the variable compensation for their CIOs
to changing that deadly 80/20 budget ratio by 5 percentage points per year.
The CIOs willing to tackle this huge issue will not only earn some nice bonus
dollars but will unlock huge value for their companies as well as for their
own careers.
2) Lead the Social Revolution: Drive the Social-Enabled
Enterprise. When social media began to invade the corporate world some
years back, the traditional border-collie behavior of many CIOs triggered
immediate and unconditional opposition to social tools on the grounds of
security challenges, lack of familiarity, and unproven value. As social’s ability
to forge new and more-immediate relationships with customers became more
clear, some CIOs grudgingly agreed to let down the drawbridge (but they drew
the line at removing the alligators from the moat!). Today’s business-
technology leaders must go well beyond that passive acceptance and become
passionate and unconditional zealots for the social-driven revolution and its
ability to help their companies grow by providing real-time customer insights,
engagements, and processes. Beyond customers, the social revolution is also
becoming indispensable internally for motivating existing employees and
recruiting great new talent, and in forging deeper and more-valuable
relationships with partners. My POV: CIOs who fight this trend will be
pushed aside by CMOs and LOB heads who understand social’s potential and
know they can’t compete unless that potential is harnessed by the company
for competitive advantage. And what does “pushed aside” mean? At best,
temporary embarrassment, and at worst, demotion or even unemployment.
3) Unleash Your Company’s Intelligence: Create the Enterprise-
Wide Opportunity Chain. Building on but transcending existing notions of
supply chain and demand chain and data warehouses and data marts, the
Opportunity Chain transforms that internally oriented information into the
customer-centric and growth-driven language of opportunity. New prospects,
new market trends, new chances to engage, new insights for new products,
new demographic patterns: information and insights about all of these
probably exist somewhere within your corporate IT maze but are almost
impossible to find because we cloak them in IT-specific terminology and then
trap them in incompatible silos. But today’s new and always-on global
marketplace requires new insights driven by the social revolution, and many
of our old and trusty systems and approaches are simply not suited to the new
realities demanded by our customers and by our times. In addition, the
Opportunity Chain concept provides a market-facing framework and context
for richly exploiting the potential of business analytics and Big Data. My
POV: Whatever it’s called, this idea of the Opportunity Chain gives CIOs a
fantastic, well, opportunity to drive high-value new information assets
throughout the company and demonstrate again that when business
technology is aggressively imagined and led, it drives growth and sparks
new and deeper engagements with customers.
4) Embrace the Engagement Economy: Merge the Back Office and
the Front Office into the Customer Office. One of the most-valuable
perks of being a CIO is the ability to be involved with and understand not just
some but all of a company’s end-to-end processes. From manufacturing to
marketing, from procurement to product development, from finance to
Facebook, the CIO and the business-technology team have tremendous
insights into how a company’s operations, its priorities, its vulnerabilities, and
its opportunities. So today, as our systems of record become systems of
engagement, and as the social revolution opens up all facets of our enterprise
to customer interactions as well as customer scrutiny, isn’t it time to bulldoze
the internally constructed silos separating the folks that have traditionally
touched the customer (the “front office”) with those that were never allowed
to—or at least supposed to (the “back office”)? Shouldn’t we try to engage our
customers in product development? Engineering? Service plans and
operations? Marketing? Pricing options? My POV: While traditional systems
reinforce the notion that only the privileged few get to interact with
customers—and while that might be convenient for us internally—today’s
socially powered consumers want access beyond the sales team. The question
is, are you able—and willing—to grant that essential access?
5) Future-Proof Your IT Architecture. Think back just three years to the
state of your business and the state of your IT strategy: the cloud was still
mostly conceptual or isolated out on the fringes, social was a minor but
persistent irritation, Big Data was mostly an egghead conversation and not
likely to get beyond that, “engagement” was something you hoped your
daughter would not get into with her goofy boyfriend, business analytics was
all taken care of by a big team of specialists serving a small team of executives,
and the iPad was still blessedly nothing but a rumor. The CFO badgered you
every month about your endless demands for more real estate in which to put
endlessly growing racks of servers requiring endlessly growing volumes of
electricity and air conditioning, but what else could you do? The data
explosion required a parallel explosion infrastructure growth, right? But the
physics and the finances of such an approach no longer work, and the new
business demands of today must surely be met with more-innovative tools
tomorrow. My POV: Businesses need fresh thinking about the architecture
of tomorrow because merely rehabbing or adding on to the existing plan will
simply not meet the wildly different and more-demanding requirements of
tomorrow. Cloud, social, mobile, engagement, Big Vision (formerly Big
Data), and a greatly accelerated pace and scale of global business require
modern apps, optimized systems, fault-tolerance, full support across cloud
and on-premise and a mix of both, and built-in BI and social capabilities.
6) Upgrade “Cloud Strategy” to “Business Transformation Enabled
by the Cloud.” Without question, CIOs must have detailed strategies and
plans for cloud computing and many already have those in place (to those of
you who don’t, well, did you ever get that high-school teaching certificate?).
But the strategic CIO will use the next several months to collaborate with the
CEO in upgrading that tech-centric plan into a broader vision for a sweeping
business transformation of the entire enterprise. If you’re still viewing your
cloud strategy based on a tech-driven plan written a year or two ago—before
the ascendancy of social, customer engagement, Big Data, and business
analytics—you’re going to miss the boat. My POV: Cloud projects will not be
judged on their technical merits or on hitting their go-live dates, but rather
by how deeply they impact essential business-transformation initiatives, and
by how much business value and opportunity they unlocked. In the process,
CIOs will segment themselves into two groups: IT leaders who focus solely
on the tech aspects of cloud deployments, and business leaders who ensure
that cloud projects are conceived and executed in the service of customers,
business execution, and engagement.
7) Transform Big Data into Big Insights, Big Vision, and Big
Opportunities. In the past year or so, much of the talk about Big Data has
obscured the fact that the real issue is enabling intelligent and instantaneous
analysis to provide optimal insights for business decisions. CIOs need to
ensure they’re looking at these high-volume, high-velocity challenges in the
right way: as business enablers, not tech projects. For example: What if you
could enable dynamic pricing of your company’s products around the globe?
What if you could perform fraud-detection analytics across all of your
transactions in real time, instead of across just a random sampling of only a
few percent of all those transactions? What if you could analyze three years’
worth of customer data in minutes, rather than only the past three months in
hours? In the meantime, we can be certain that the scale and speed of this
current challenge will only increase as CIOs must rapidly and seamlessly
enhance their traditional corporate data with vast new streams of social and
mobile data to realize the full potential of these strategic Big
Opportunities.My POV: Some forecasts say the CMO will soon be calling the
shots for IT; while I don’t buy into that, I do agree that CIOs who choose to
sit back and wait for “the business” to tell them what to do will end up
reporting to the CMO within a year or two. But companies will fare much
better if their CIOs eagerly and rapidly begin framing Big Data challenges
and opportunities in terms of customers, opportunities, revenue, and
business value.
8) Preside over a Shotgun Wedding: Systems of Record Marry
Systems of Engagement. Your traditional back-end systems might be
sturdy and proven workhorses but they’re simply not equipped to handle the
vast new streams of data and information from social, video, Customer
Experience, and more. Conversely, while those new engagement tools and
solutions are fabulous gateways into the real-time wants and needs of
customers and employees, they lack the historical and institutional breadth
and knowledge of your trusty ERP systems. The strategic CIO will find new
approaches and/or solutions to rapidly and seamlessly tie these separate
worlds together. This strategic integration will become the cornerstone of the
Opportunity Chain described above in #3, and also of the consolidation of the
archaic front office and back office into the modern Customer Office as
described in #4. My POV: This union of social/mobile with transactional
capabilities will give companies a new way to move at the speed of their
customers, new methods for engaging with customers to build multifaceted
relationships rather than linear transactions, and the ability to avoid getting
stuck in the tar pit of siloed systems designed to meet internal requirements
rather than enable the co-creation of value with customers
7 Successful Business Strategy Models You Must Emulate
inShare25
Today, I want to reveal to you seven businesses I am modeling. As you know, I am in the
entrepreneurial process of building a business so I have to follow the footsteps of the great business
leaders. Just as I have business mentors and entrepreneurial role models, I also have business models
that I strategically follow.
In this article, I will be revealing seven companies I use as a standard to build my own business; I
will also be telling you the strengths of these companies. I love and model my business after these
companies not because of their great products but because of their strategic management style. They
are successful companies and they make good business models for younger companies.
I will be specifically explaining the specific business strategy used by each of these successful
business models. You are also free to adopt any of these strategies for your business. If you are
ready, let’s set the ball rolling. Below are seven successful business strategy models you must
emulate.
7 Successful Business Strategy Models You Must Emulate
1. Apple Inc - Good Innovation Strategy
“Innovation distinguishes between a leader and a
follower.” – Steve Jobs
I listed Apple Inc because of the innovative style of
their management. Apple has kept the pace by using
strategic innovation to maintain leadership position
in the technology industry. Apple’s innovative
strategy is simply breathe taking.
You can never predict what they’ve got up their
sleeves. They are always coming out every now and
then with one innovative product or the other.
They’ve caused several frenzies in the marketplace
with products such as iMac, GMac, IPod and IPad.
“To turn really interesting ideas and fledging ideas
into a company that can continue to innovate for
years, it requires a lot of disciplines.” – Steve Jobs
“In three years, every product my company makes
will be obsolete. The only question is whether we
will make them obsolete or somebody else will.” –
Bill Gates
Apple’s innovative style has made them consistently
rank top ten in the Fast Company’s list of innovative
companies. I try to model Apple in my own little
way by constantly improving on businesses. I
constantly seek innovative ways to increase
customer’s loyalty and profit. If you want to make
innovation one of your company’s core values, then
Apple is one of the successful business strategy
models you can emulate.
“Pretty much, Apple and Dell are the only ones in
this industry making money. They make it by being
Wal-Mart, we make it by innovation.” – Steve Jobs
2. Virgin Group – Strong Competitive
Strategy
“A business has to be involving, it has to be fun and
it has to exercise your creative instincts.” – Richard
Branson
I respect Richard Branson’s Virgin Group for their
guts. They are always unafraid to tackle giant
companies head on. The Virgin group is respected in
the business world for their strong Competitive
spirit; they are quite good at outsmarting the giant
companies.
Virgin’s competitive style of management has made
them go head to head with giant corporations such as
British Airways, AOL and Coca Cola. If you have
the entrepreneurial spirit of competition, then Virgin
is the company to model your business after.
“We have always had a pretty competitive ferocious
battle with British Airways. It lasted about 14 years
and we are very pleased to have survived it.” –
Richard Branson
“What does the name Virgin mean? We are a
company that likes to take on the giants. In too many
businesses, these giants have had things their own
way. We are going to have fun competing with
them.” – Richard Branson
3. Oracle Corporation: Tactical Acquisition
Strategy
“Everyone thought the acquisition strategy was
extremely risky because no one had ever done it
successfully. In other words, it was innovative.” –
Larry Ellison
What really made me doff my hat for Larry Ellison,
founder of Oracle Corporation was his aggressive
acquisition strategy. What will you say of a
company that spent over $65billion to buy up 57
companies in a space of five years?
The company was molded by the founder “Larry
Ellison” to expand via strategic acquisition and this
strong acquisition strategy made them beat IBM to
the game by acquiring Sun Microsystems. If
mopping up smaller companies delights you, then
Oracle acquisition strategy is a business model to
study.
“In order to grow at this pace, there’ll have to be a
couple of acquisitions along the way. The tricky
thing is to grow at this rate and maintain a 40
percent operating margin.” – Larry Ellison
“I think you might see us growing much deeper into
banking. You might see us acquiring companies in
the banking area. You might see us acquiring
companies in the retail area. I think you might see us
acquiring companies in the telecommunications. I
think you will see us getting stronger in business
intelligence.” – Larry Ellison
4. Dangote Group – Niche Domination
Strategy
One of the successful business strategy models you
must be on the watch out for is that of the Dangote
Group. This group is so strong in the Nigerian
commodities market that they have held the market
to ransom for years.
The Dangote Group has a thorough understanding of
the commodity market. Their strategy to focus and
dominate this niche has put them in control of over
42% of Nigeria’s commodity market; a country that
boast of a population with well over 150 million
people.
Dangote Group now maintains a stronghold on the
Cement, Flour, Pasta, Salt and Sugar market. Thanks
to the vision of its founder, Aliko Dangote; the
richest black man in the world. One lesson I picked
up from the Dangote Business strategy model is this;
forget about satisfying everyone, just pick a niche,
master the ins and outs and strive to be the best in
that niche.
“The ultimate goal of the Dangote Group is to
dominate every niche in which it operates. In order
to achieve this goal; we acquired over 3000 new
trucks, developed a strong distribution network and
increased production capacity. Our strategy is to sell
our products faster than our competitors and at
uniform price.” – Aliko Dangote
“And here is the prime condition of success, the
great secret. Concentrate your energy, thoughts and
capital exclusively upon the business in which you
are engaged in. Having begun in one line, resolve to
fight it out on that line; to lead in it. Adopt every
improvement, have the best machinery and know the
most about it.” – Andrew Carnegie
5. Reliance Group – Thinking big strategy
Do you know one thing I love about Mukesh
Ambani’s lead Reliance Group; they think big and
do things big. They own the largest refinery in the
world and they are one of the largest conglomerates
in the world; but they were not as big as this many
years ago.
To further proof their belief in doing things big,
Reliance Group invested $5billion in a single swoop
to create a network of retail stores. The ultimate
lesson from this successful business model is this;
start small but think big.
“I like thinking big. If you’re going to be thinking
anything, you might as well think big.” – Donald
Trump
6. Wal-Mart: Unique Pricing Strategy
“Always low price.” – Wal-Mart slogan
Wal-Mart, in the face of stiff competition came up
with a winning strategy that made them industry
leaders. They decided to use strategic pricing as a
weapon to overcome their competitors and that
pricing strategy has put them in the leadership
position.
Today, as at the time of this writing; Wal-Mart is the
most capitalized company in the world and number
one on the list of Fortune’s 500 companies.
“There is one rule for the industrialist and that is:
make the best quality goods possible at the lowest
price possible, paying the highest wage possible.” –
Henry Ford
7. Coca Cola: Strong Brand Strategy
“If you are not a brand, you are a commodity.” –
Robert Kiyosaki
The seventh successful business strategy model we
will be looking at is Coca Cola; owners of the world
strongest brand. Sometime ago, Coca Cola’s fixed
assets were estimated at $8billion but its brand name
“Coca Cola” was estimated to be worth over
$80billion. Why? The reason is because Coca Cola
has worked diligently over the years to strengthen
their brand.
The Coca Cola brand is the most popular all over the
world; thanks to the strategic brand management
team of the company. If using your brand image to
gain an edge over competitors looks like something
you can diligently pursue, then Coca Cola’s business
strategy model is definitely worth emulating.
These are the seven successful business strategy
models you can use as a benchmark to model your
business. I want to state categorically that it’s
useless trying to implement all these strategies. Just
pick one or two and diligently give it your best shot;
and success will be yours