Those who love video know Netflix and Blockbuster. Both became household names, Netflix via a mailed video platform, Blockbuster by opening countless video rental stores. Having reached success, Netflix reinvented itself with video streaming services. Blockbuster did not reinvent itself, and the days when its stores stood on every corner are but a memory.
The example points up an oft-experienced business reality. After growing for years, a company goes into a growth stall. It could be from misreading technology or buying trends, a stagnation in core demand for products or myriad of other growth-stymying factors. Some argue a company facing this stage must reinvent itself or face extinction. If yours is a company needing reinvention, here’s how to do it successfully:
- Look beyond today’s success. Some companies become convinced today’s robust revenues and profits will continue forever. That can blind them to emerging market challenges on the horizon. Keep an eye out for changes that could derail your success, and ways to reinvent your company in response.
- Hone new capabilities. Your company’s capabilities and expertise differentiate it from lesser competitors. Sooner or later, these capabilities will likely become dated. Invest in training, research and development that enable your company to maximize business opportunities that lay ahead.
- Strengthen your company with additional talent. Reinvention also calls for new team members who can bring fresh insights to corporate processes as well as today’s changing marketplace.
In business, change is the only constant. The difficult process of reinvention can be a critical strategy in ensuring your company changes with the times.
How are you reinventing your company?