The result of this week’s rollover is certainly a wake up call for me and my team, the disadvantage of our strategy is becoming more clear and the i am certain that our competitors have seen it and took advantage of it.
One of the key problems as Baghai and Viguerie (2009) described is that our firm is flying blindly with our strategy, having a blind faith to our strategy would work regardless the potential disadvantage that this strategy had, therefore did not put in too much effort to prevent the situation like this would happen. I kept asking myself what did i miss? What could i have done to make this strategy work? Or more simply what went wrong? And now i know.
The key to answer this problem is finding the balance between cost and revenue. Our firm spent too much money and expects an over optimistic return on our investment, therefore better resource allocation needs to the implemented to maintain our advantage. One of the solution could be using the data at hand and find the market that is more likely to grow instead of spread out the resources to multiple products and expects a return on investment on every single one of them. Just like Baghai & Viguerie (2009) have suggested low growth area should be jettisoned.
Speaking of data, due to the fact that Mike’s bike simulation produce the data for you and every gets the uniformed data, it sort of creates a perfect market where the competitor can see what you are doing and respond to personally i think is convenient, but it is unlikely to happen in the reality. Just like Davenport (2006) suggested it takes years to have a function analytic system, with the right people, culture and technology. And Mike’s Bike just gives it to you for free, this has its advantages and disadvantages, however i think it really depends on the people who can find a trend or pattern to develop the best strategies would benefit the most.
Overall it is interesting to finding out the what we did wrong and what we could do to fix this situation, this weeks event surely served as a wake up call and hopefully we could find a way out this ocean of competition.
Baghai, M., Smit, S., & Viguerie, P. (2009). Is your growth strategy flying blind? Harvard Business Review, 87(5), 86---96.
Davenport, T. H. (2006). Competing on analytics. Harvard Business Review, 84(1), 98--107.