Wednesday, 14 January 2009

Learning from events..


Starting a business. There are a few things you can learn from the recent events in the industry.

1. Think long term and develop strategies accordingly. If you are there for the quick money, it is unlikely you will succeed. Being successful requires committment of time, energy and resources.

2. Why do you think you will succeed? What do you have that other firms/competitors don't have? Businesses cannot be sustained on temporary advantages. Our yarn and palm oil industry depended on tax-advantages while the steel and other industries couldn't build on the advantages offered by cheap energy costs. What a waste..

Be sure that you have the abilities to develop, manage and deploy capabilities and resources. These are the only  sources of sustainable competitive advantages.

3. Can you see the bigger picture? Monitor your markets, customers and the industry trends regularly. Most of our steel plants got caught out by the fall in demands for their products. In this instance, being watchful and some analyses of information available online would have alerted the potential fall-out.

4. You cannot sell without a brand? Is your product/service unique? What needs of the customer does your products fulfill? You don't want to be the first to be rejected by your customers during a downturn.

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