Communications

(Ghost Written)

In business, natural selection rules. Consider these tips to stay relevant in a tumultuous marketplace

By Jim Thornton

In today’s Darwinian marketplace, savvy companies recognize the need to adapt in order to remain competitive. Or in some cases, just to survive. This often entails reinventing your company’s vision to more closely align with trends and what your customers really want. A business leader should always think like an entrepreneur or an inventor. If you get too comfortable with business-as-usual, you’ll lose your edge.
In a turbulent economy and/or unstable political climate, companies have a natural tendency to play it safe, cease investing and in some cases cut costs. This is a mistake. Take, for example, JetBlue following the tragic events of 9-11. As flights drastically decreased, airlines began layoffs and other cost cutting measures. CEO David Neeleman saw it differently and committed to not lay off any of the airline’s 2,000 employees. Instead, Neeleman continued investing in his company and refined his marketing activities. The company was able to emerge from 2001 as one of the nation’s most profitable airlines.
Citing another example, Abercrombie & Fitch Co., after falling on hard times, reinvented itself during the Mid-90s. The company successfully positioned itself to be the hippest clothing line for college-age consumers. Observing how many clothing retailers lose control of their brand, Abercrombie took complete control of its product—from the brand’s atmosphere in its stores to its product development cycle. The company’s marketing strategy also included the A&F Quarterly—a magazine for its target customer, a popular website, and particular attention to where it located its retail stores.
Natural selection will reward those companies that are agile and able to adapt. Adapting can consist of altering product offerings and target markets, boosting customer service, and reinventing brands.    When I took over Provo Craft in 2005, the company was going through some challenges. Although the company’s performance was laudable, there was potential for more accelerated growth. Revaluating our approach, we began to target a market segment that had been ignored to date— technology products specifically for the female market.  We rolled out the Cricut™ Personal Electronic Cutter machine, which has since won numerous awards within the industry and without. We will shortly roll out a silk-screening product and a thermal bookbinding system. In addition, we saw a void in the “Green” space and will soon announce a solar-powered battery pack and several other environment-friendly initiatives. Since changing direction Provo Craft has tripled profits.
Here are three crucial steps to consider before changing company direction:

Know what your customers are thinking
Utilize customer feedback. Through surveys, or good old fashion research, find out what your customers really want and give it to them. Utilizing customer feedback will not only help in the product creation process, but will help refine operations, sales processes and whatever kinks you may have been previously blind to.

Give your brand a facelift
Brands get stale. Once you’re sure what your customers want, revive your brand and highlight the uniqueness of your offering. Start with new company messaging that will filter down to your new logo, packaging, advertising strategies and coverage in the press.

Hire the right team
This may be the most important thing you do. During my first year at Provo Craft I personally took on all executive roles to flush out the bugs. I then recruited several Fortune 500 executives to come join the company. Our CFO, Dave Chase, was recruited from Honeywell International; our executive vice president of sales and marketing, Brad Brusa, came from Newell-Rubbermaid; and our vice president of business development, Jeff Coulter, came from Intel.
I knew that without this caliber of talent we’d never reach our potential. It’s largely due to this executive team that Provo Craft has reached a pinnacle of success.
Companies need to anticipate changes in the marketplace and adapt before it’s too late. If competitors make the change first, it becomes that much harder to differentiate yourself. Natural selection has a way of dealing with companies that fall behind the pack.