Responding to change: options for strategy implementation
People’s tastes and preferences are fickle. Companies need to respond to this trend in order to remain relevant in the market. This is why one of the most important skills for companies is the ability to respond to change in a timely manner.
Technological progress is changing the global landscape, with serious implications for the development of the economy and people’s lives. As a result, consumer tastes are changing rapidly, and companies need to be ready. Their task is to respond to new trends in a timely manner and adapt their offer to the realities. The best way to do this is to develop a strategy that allows the company to remain flexible.
The concept of responsiveness is based on five main strategies:
- rethinking;
- repositioning;
- rebranding;
- downsizing;
- retreat.
The worst-case scenario for any business is to retrench or withdraw from the market. This happens when a company fails to keep up with change and adapt its product to the needs of its customers. Rethinking helps to avoid this situation. It improves the offering, making it more attractive and useful to consumers. At the same time, the company retains its identity as it evolves. An example of the right kind of rethinking is the Apple brand. In this case, the company’s offering expands to attract more and more customers while the brand identity remains intact.
When rebranding and repositioning are relevant
There are times when a rethink strategy will not be effective in a particular situation. This happens when a brand comes under pressure from an association with a particular product, technology, or consumer category. The way out for a company may be rebranding or repositioning. These approaches allow the brand to retain its values but change its identity.
There are two types of rebranding:
- A new name. If the main product is quality and reliability and the company is identified with negative aspects, it is better to rename the brand.
- Focusing on the product’s benefits. This approach is relevant when a technology can be used for different purposes. To highlight a particular function, rebranding focuses on specific product features.
As with repositioning, implementing this strategy requires serious effort. It involves changing products that are already well-known and important to a specific group of customers. This approach aims to strengthen the company’s position in the market and to attract a new category of customers. Repositioning requires a thorough analysis of the target audience to ensure that existing customers are not lost.
Another way for a company to respond to change may be to cut costs. In this case, the company may still be in demand but among a narrower niche of consumers. However, this option is better than leaving the market.
Regardless of which strategy is optimal for a particular company, it is essential to have a well-thought-out plan. This will allow you to make changes as painlessly as possible and become stronger and better for your customers.
