We usually say goodbye to a well-earned vacation in July. But not much is normal this year. Some hard-boiled people will go on vacation without a change of plan and thus support the economies of other countries. Others will explore the beauty of their own country this summer and benefit the local economy. And we will all enjoy being able to leave our own four walls and perhaps move a little closer to other people again than in previous years. It may well be a positive side effect of the pandemic that we now value freedom, closeness and contact even more.
Nevertheless, the decelerated period after the standstill time will certainly also be used to revisit and reflect. The entrepreneurs among us are certainly thinking about the last three to four months. Like the famous black swan, which you only thought existed after you had seen it, COVID19 appeared out of nowhere.
After the initial shock phase, many entrepreneurs and self-employed people thought about what they could do in this situation. A very impressive number switched production relatively quickly to products that were suddenly in high demand. Regular production is now resuming. What do you do with the products that you have produced in the meantime? Simply stop production and return to the previous product range?
Let's take a look at a specific case: a manufacturer of exhaust systems that has converted its production to ventilators. Furthermore, the purchase markets cannot be separated from each other: automotive industry and hospital business. But when we look at the technology behind them, both products are about transporting air from one place to another and changing the quality in the process (the engineers among you may forgive me for this rough simplification).
When defining a company's strategy and vision, it is always about describing exactly what the company is doing. I once had a visionary manager who motivated his people to think bigger and more broadly by saying: If your market share is over 20 percent, you have misdefined the market. So when we look at the exhaust system manufacturer: Is he in the market for exhaust systems for the automotive industry, or in the market for systems that move and improve air quality at home? If you opt for the latter, many additional sales markets suddenly come into play: exhaust air systems for sewage treatment plants or for agricultural businesses. Home equipment for asthmatics and allergy sufferers. Experts will certainly think of a whole host of other possible products here.
Especially now that our economy has fallen to its knees, it would make sense to expand our supply in order to diversify risk. Because the pandemic has also shown that it is only in the rarest cases that all markets go into an economic slump at the same time and at the same time.
Of course, this has consequences for the company if new business areas suddenly arise. The business model must be reconsidered, as must the value chain and the competencies of employees. In addition, new partnerships and sales markets are being established, which are useful for the various offers.
In principle, we are talking about a reverse strategy process: Instead of deciding at the beginning in which market you want to offer something, you now have an additional offer and ask yourself: How do I have to define the market so that all my offers fit perfectly into it.
Sounds complicated? But it isn't. I'd be happy to help you with these considerations! I also have a online seminar held. If you are looking for assistance with this process, I am here for you!
