How mission and values are affected by company’s vision?

Introduction

TOKYO—In the 1960s, Fujifilm Holdings Corp. was a regional presence just starting to widen its focus globally and playing a distant catch-up to photographic-film leader Eastman Kodak Co.Fujifilm couldn’t have maintained revenue if it focused only on digital imaging, says CEO Shigetaka Komori. But in the subsequent 50 years that have relegated film to the margins, Kodak failed to keep pace, filing for Chapter 11 bankruptcy protection on 2012, while Fujifilm has transformed from a fairly narrow photographic supplier into a diversified company with significant health-care and electronics operations. What Fujifilm did was to look further than simply moving to digital photography from analog. Instead, the company tapped its chemical expertise for broader uses, such as drugs and liquid-crystal display panels. Cosmetics, as well: It seems the process for stopping photos from fading can be used on skin, too. (Inagaki, K & Osawa. J. 2012)

In today’s fast-paced world, companies are struggling to keep up with the rapidly changing demand of customers. Fast decision making is essential skill to have nowadays since businesses are changing all the time and. You need to be willing to take risks if needed to keep your company alive.

How businesses can research and identify the new market trends? 

In today’s business environment, sustaining growth and profitability is never a guarantee. Technological and scientific advances shorten life cycles of products and services, business models change and new competitors appear from outside the industry. This constant instability makes it necessary to seek new business opportunities. (Euromonitor International, 2017)

According to Euromonitor International, there are eight analysis types to identify market opportunities:

  • Consumer segmentation – To understand your demand, you must identify consumer segments that share common characteristics. These characteristics can be “hard” variables such as age, gender, place of residence, educational level, occupation and level of income or “soft” variables such as lifestyle, attitude, values ​​and purchasing motivations.
  • Purchase situation analysis – Looking at distribution channels, payment methods and all other circumstances that involve purchasing decisions can teach you how consumers buy and how you can position your product appropriately. Offering new shopping alternatives may bring new customers. For example, vending machines offering snacks like yoghurt and individual juices have been introduced in the hallways of the subway of Santiago de Chile, promoting on-the-go consumption.
  • Direct competition analysis – In addition to analysing demand and purchasing situations, it is important to analyse supply. Knowing the existing players in the market where you are competing or going to compete is important when evaluating opportunities. 
  • Indirect competition analysis – Opportunities can also be found by analysing substitute industries. For example, thanks to the decrease in airfares, airlines may look for opportunities in consumer segments currently supplied by other means of transport.
  • Analysis of complementary products and services – Companies should monitor the performance of other companies’ products, which are complementary to their own. For instance, a packaging company should monitor sales of products that it could potentially package, while a company producing coffee machines should gather insights on the evolution of different types of coffee sales. Trends in complementary markets should be taken into account when making investment decisions.
  • Analysis of other industries – In some cases, the objective of companies is not to continue operating within an industrial sector but to expand a certain business model or philosophy.  For example, a British holding of companies, Easy Group, started maximising the occupancy rate of flights with the airline Easy Jet. Easy Group understood that it was preferable to sell a seat at a lower price than not selling it at all. Easy Jet opted for a rate management model that depended on the occupancy rate of flights and the time remaining until the day of the flight. With this business model, it managed to increase occupancy rates. Easy applied the same model to cinemas when it created Easy Cinema and then with buses for Easy Bus. In any case, to enter a new industry it is important to learn about competition first: market sizes, market shares, growth rates, unit prices, per capita sales and brands positioning.
  • Foreign market analysis – When a company operates in a mature or saturated market, exploring other countries may lead to additional opportunities. Markets in different countries grow at different paces for several reasons, including disparities in the level of economic development and local habits. Knowing the evolution of per capita consumption of a given product in a given country can serve as an indicator of the maturity of the product’s life cycle. Having information on the size of the market and competitors in other countries will help to estimate the business potential.
  • Environment analysis – Market opportunities can also be identified by analysing changes in the environment with technological and scientific developments generating new business opportunities. For example, the growth of the Internet and smartphones’ penetration has enabled the arrival of companies with new business models such as Airbnb and Uber. 

There are many things to take under consideration when predicting the market trends. One more to add on the list is to make the most of digital tools and analytics to assess the industry behavior. Social media is huge thing nowadays and you can get the idea what consumers want and what is or will be trending. You can also reach many consumers with interesting and original campaigns in social media and make new trends by yourself as well. The most important thing again is to react fast to hints of what will be the next big thing. Overall it is crucial to follow what is happening in the business world and what other companies are doing – to follow the conversations and if possible, to participate to the discussions. It’s essential to understand consumer’s buying process, analyze the data you have about it. It is important to take under consideration the supply and demand theory about pricing and quantities of products you are making.

How can companies adapt to market changes?

Change is inevitable not only in life but in business too. As long as the people and the technology are progressing, so should the businesses around them. Hughes defined change as “any alteration in the status quo”. It is the start of a revolution, may it be small or not. If they do not adapt to their environment, the competitive edge they offer to their customers would likely be gone. The importance of adapting to change in business should be noted by owners. They should know what changes need to happen so that they can still provide a great experience for their consumers. Benefits of change in business can be seen in easy situations like how technology is adopted by most of them. Another example is the online world. As people are getting more preoccupied with other things, many of them do not go to physical stores but shop online. Because of this, many brands and businesses have adapted to it and made accounts in different social media and created their own website. As a result, those who adapted well to it have increased their revenue by far better than those who still have not. (Chua, 2019)

Great success story beside of Fujifilm is Amazon. They started as an online marketplace for books. Later on, they started to sell pretty much everything from clothes to electronics. Nowadays the company is also focusing and developing artificial intelligence which is far away from the online store for books. Now Amazon is even creating supermarkets where you can just walk-in, collect what you want to buy and your smartphone is acknowledging what you put in your cart and after you can just walk out from the store and the money goes from your bank account. What Amazon has done and is doing all the time, is adapting to new market changes. Like Fujifilm, it has reacted to rapidly evolving world. Either you adapt or you will in worst case scenario lose your company. 

The mobile giant Nokia has different kind of story. They used to rule the market, and then something happened. They had created the first mobile phone with touch screen, but they thought that no one would want to have this kind of phone. What happened is that Apple came and published this kind of product first – and it was a success story which is still continuing. Nokia had the technology that could have kept them be the market leader even now, in 2019. They failed to read the market trends and adapt to changing business world.

There are few theories and models about adapting and renewing your business model. One is Kurt Lewin’s change model. Kurt Lewin developed a change model involving three steps: unfreezing, changing and refreezing. The model represents a very simple and practical model for understanding the change process. For Lewin, the process of change entails creating the perception that a change is needed, then moving toward the new, desired level of behavior and finally, solidifying that new behavior as the norm. The model is still widely used and serves as the basis for many modern change models. (Study.com) Here are the three steps in Lewin’s model:

Unfreezing

Before a change can be implemented, it must go through the initial step of unfreezing. Because many people will naturally resist change, the goal during the unfreezing stage is to create an awareness of how the status quo, or current level of acceptability, is hindering the organization in some way. Old behaviors, ways of thinking, processes, people and organizational structures must all be carefully examined to show employees how necessary a change is for the organization to create or maintain a competitive advantage in the marketplace. Communication is especially important during the unfreezing stage so that employees can become informed about the imminent change, the logic behind it and how it will benefit each employee. The idea is that the more we know about a change and the more we feel it is necessary and urgent, the more motivated we are to accept the change. 

Changing

Now that the people are ‘unfrozen’ they can begin to move. Lewin recognized that change is a process where the organization must transition or move into this new state of being. This changing step, also referred to as ‘transitioning’ or ‘moving,’ is marked by the implementation of the change. This is when the change becomes real. It’s also, consequently, the time that most people struggle with the new reality. It is a time marked with uncertainty and fear, making it the hardest step to overcome. During the changing step people begin to learn the new behaviors, processes and ways of thinking. The more prepared they are for this step, the easier it is to complete. For this reason, education, communication, support and time are critical for employees as they become familiar with the change. Again, change is a process that must be carefully planned and executed. Throughout this process, employees should be reminded of the reasons for the change and how it will benefit them once fully implemented. 

Refreezing

Lewin called the final stage of his change model freezing, but many refer to it as refreezing to symbolize the act of reinforcing, stabilizing and solidifying the new state after the change. The changes made to organizational processes, goals, structure, offerings or people are accepted and refrozen as the new norm or status quo. Lewin found the refreezing step to be especially important to ensure that people do not revert back to their old ways of thinking or doing prior to the implementation of the change. Efforts must be made to guarantee the change is not lost; rather, it needs to be cemented into the organization’s culture and maintained as the acceptable way of thinking or doing. Positive rewards and acknowledgment of individualized efforts are often used to reinforce the new state because it is believed that positively reinforced behavior will likely be repeated.

Like we can see through companies like Fujifilm and Amazon is that once you adapt to change you have the possibilities to keep up with the changing world and keep your company alive. Nokia on the other hand shows what can be your company’s fate if you don’t adapt to market changes. Business world has always been crucial, but in today’s world even more because the technology is evolving faster then ever before, consumer’s demand more and faster things to happen and new startups are coming to the markets all the time. The competition is very high, and if you don’t keep up with the market changes and trends you will fail to succeed. Companies need to get creative to be able to diversify their business and products. Fujifilm did amazingly when applying their already existing technology into something totally new, like skin-care products.

References

In-text reference: (Euromonitor International, 2017)
List of references: Chehtman, A. 2017. 8 ways to identify market opportunities for business growth. URL: https://blog.euromonitor.com/8-ways-identify-market-opportunities-business-growth/. Accessed: 23.6.2017.

In-text reference: (Chua, 2019)
List of references: Chua, F. 2019. Adapt or die: The importance of adapting to change in business. URL: http://customerthink.com/adapt-or-die-the-importance-of-adapting-to-change-in-business/. Accessed: 28.1.2019.

In-text reference: (Inagaki, K & Osawa. J. 2012)
List of references: Inagaki, K & Osawa. J. (2012). Fujifilm Thrived by Changing Focus. The Wall Street Journal. January, 20, 2102. http://www.wsj.com/articles/SB10001424052970203750404577170481473958516. Accessed: 20.1.2017.

In-text reference: (Study.com)
List of references: Hartzell, S. Lewin’s 3-stage model of change: unfreezing, changing & refreezing. URL: https://study.com/academy/lesson/lewins-3-stage-model-of-change-unfreezing-changing-refreezing.html.

One thought on “How mission and values are affected by company’s vision?

  1. A very well organised blog!
    Lovely to look at and interesting to read.
    Please remember: in in-text references you do not put a comma after the name of the author/source. In-text references are only placed in the text, not at the end of the document.

    Like

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