Built to last – Does it still hold waters now?

In this ever changing world with ever changing consumer preferences, can we think of companies dominating the industry for more than 50 years? Can Apple, Microsoft, Google sustain its dominance for another two decades?

If yes, what does it make an organization to have an everlasting success? It is the innovation in products/processes, business model consistently over smarting the rivals that keeps the company moving forward or the timeless fundamentals that can stand the test of time?

A closer at the companies that stood the test of time with a sustained performance reveal that these organizations have strong fundamentals which make them tide away any strong competition. It is those fundamentals that are making these companies getting better with every challenge that comes their way.

As gone are the days when companies run on a single charismatic leader, how can companies preserve those fundamentals with the change in the guard and with changing market dynamics.

Business Leaders have an Obligation to Create Lasting Value, Albeit Pressure for Short Term Earnings Often Gets in the Way

Few companies stand the wind against all odds and manage to raise to the top and stay there for years. There may many factors that would have contributed to such phenomenal prosperity, but one factor would be common for all these companies, which is a cleverly crafted and well executed strategy that creates an enduring competitive advantage,which is adaptable to changing environment and can withstand the competition challenges from rival firms.

Every company faces three questions at many crucial stages

·         What is our present situation? – This question answers your present standing in the market, financial performance, its competitive advantages, strengths and weaknesses, changes taking place in the industry and how it is going to affect the company

·         Where do want to go from here? – This question answers the company’s future direction

·         How are we going to get there? – This makes managers to chalk out an action plan spelling out competitive moves and business approaches to respond to changing economic and market conditions and capitalize on growth opportunities. How to handle each and every functional unit and improve financial and market performances

The strategy any company defines and executes works properly only when it is appealing to buyers in ways that sets apart a company from rivals. Every company needs a distinctive element that attracts customers and produce results.

It is the responsibility of the business leader to craft the strategy for the long term success of the company, without getting distracted to get short term gains. It is when this strategy perfectly executed will make the competitive advantage it has created for it becomes their core competence and it is when a long lasting value gets created