Two manufacturing companies \u2018A\u2019 and \u2018B\u2019 sell the same product.\u00a0<\/p>\n\n\n\n
Both companies have good profit margins, employees are happy and the management is satisfied.\u00a0<\/p>\n\n\n\n
Despite being in the same product, none of them pose a threat to each other as they have independent customers and more or less fixed revenues.\u00a0<\/p>\n\n\n\n
Now that\u2019s not the entire story.<\/p>\n\n\n\n
In time, their market opens up, demand increases and owing to customer requirements, changing business strategy becomes inevitable, right?\u00a0<\/p>\n\n\n\n
Here\u2019s what \u201cA\u201d does:<\/strong><\/p>\n\n\n\n 1. Focuses on reducing the price for customers.<\/p>\n\n\n\n 2. Hires fewer people but expands capacity through technology solutions.<\/p>\n\n\n\n 3. Gathers real-time tracking<\/a> information using tech systems and improves the response speed.<\/p>\n\n\n\n 4. Team members spend time building strong relationships<\/a> with clients and vendors. Here\u2019s what \u201cB does:<\/strong><\/p>\n\n\n\n 1. Focuses on increasing the price for customers.<\/p>\n\n\n\n 2. Hires more and more people to expand capacity, prefers manual work, creates 5 levels of hierarchy.<\/p>\n\n\n\n 3. Gathers information through day-long meetings, phone calls, emails, hires secretaries to create reports.<\/p>\n\n\n\n 4. Team members spend most of their time managing essential workflows, checking or correcting data in reports. 8 years passed. One of the two survived. Who is likely to have survived? \u201cA\u201d or \u201cB\u201d<\/strong> In the last 15 years, 52% of fortune 500 companies have vanished. This is not a hypothetical brain teaser. If you can guess who survived, you are already a genius, because 52% of fortune 500 companies couldn\u2019t see it coming, isn\u2019t it? As said by Dr. Graeme Edwards \u2013 \u201cIt\u2019s not the plan that is important, it\u2019s the planning.\u201d\u00a0<\/p>\n\n\n\n The worst part about a failing business is that the entrepreneur is unaware of it happening until it is often too late. It makes sense because if the entrepreneur really knew what he was doing wrong, he might have been able to save the business. Some entrepreneurs live in a land of denial while others are unaware of their mistakes.<\/p>\n\n\n\n In Conclusion \u2013<\/strong><\/p>\n\n\n\n Yes, it is true that most businesses fail. It is also true that many of them succeed. Those that succeed are not the result of miracles. Entrepreneurs who lead businesses to success understand that it takes a carefully planned and executed strategy. A little luck also helps.<\/p>\n\n\n\n Check out our Sailing Schedule<\/a> and Freight Index<\/a> module.<\/strong><\/em><\/p>\n\n\n\n
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<\/p>\n\n\n\nWhy some businesses fail?<\/strong><\/h2>\n\n\n\n