Adaptability and Agility are Essential to Succeed in the Global Market

Swati Tiwari and Rajabahadur V. Arcot

Industrial companies face multiple challenges, such as rapid technological changes, shorter product cycles, competition, and country specific policies.  Global economic uncertainty exacerbates these challenges further.  Companies that do not adapt to the market headwinds are on a shaky wicket; due to this Kodak, a photography company is in the doldrums. 

In today’s global market it is mandatory to be adaptive, agile, responsive, and innovative to succeed.  Companies, such as Apple, Intel, and Microsoft are considered visionaries and innovators because their products and business models have revolutionized the market and transformed business practices.  Their best practices help them to remain sustainable in the hypercompetitive market place, where giants such as Kodak have collapsed.

Kodak’s fortune reversal is largely due to the company’s inability to adapt to fluctuating business dynamics and missed opportunities.  Kodak has a legacy of more than hundred years and there was no dearth of innovations; but what was missing was the ability to utilize the innovations smartly and market them.  Kodak failed to recognize the potential of new age innovations and new business processes.  The writing on the wall was clear: complacency and lack of foresight in defending its market position resulted in its downfall.  The company failed to understand that listening to and understanding the customer’s opinion  are essential for survival; Kodak stubbornly stuck to the old film business, ignoring the changing technology trends and lost the leadership position.

Indian companies, such as BPL, Weston and such other consumer durable companies, have faced similar predicament.  These companies suffered because they failed to adapt to the changing technologies and open market conditions, which saw an influx of new entrants into the market, intensifying competition.  One time leaders in India’s domestic market have lost their market share to foreign players, such as LG and Samsung.  ARC believes that domestic companies, clinging to obsolete practices and not responding appropriately to the advent of new competitors, equipped with better technologies and processes, was the cause of their downfall.

Success depends on constantly and consistently trying to achieve operational excellence. It is necessary for companies to continually rethink and evaluate their strategies for products and services.  Innovation should not be restricted to product innovation, but should include the appropriate mix of business processes and techniques.  The transition of a company from one phase to another is possible only when its overall approach towards the business is reflected in all its processes, making the company efficient, agile, and responsive to address the needs of customers as well as their employees. 

Industrial companies should not only keep track of their customers’ requirements, but should be able to predict and change customer preferences by launching new products.  They should also improve their internal processes in order to improve productivity.  The process or product which hinders growth or prevents the transition of the business into the new age should be replaced or phased out. 

ARC believes that willingness and adaptability to change ensures the long term survival and success of industrial companies.  ARC Advisory Group is organizing a forum for process industries in Hyderabad in July 2012, which will bring thought leaders and end users together to discuss about innovation, emerging technologies, their implementation, and how to best adapt to the changing market requirements. 

To know more about ARC's Hyderabad Forum please write to raja@arcweb.com/stiwari@arcweb.com.