Five Ways to Avoid Commoditization in Your Business

Recession Fears Subsided? Double Digit Growth Possible?

NOTE: I wrote this blog well before COVID-19, and decided to keep it active in my blog archive. Can we get back to some of the positive issues discussed. Let me know your thoughts. Best. David

Ernst & Young’s Capital Confidence Barometer was released last week and 93% of the surveyed C-suite executives believe economic conditions are improving, up from 85% six months ago, and 73% a year ago.

And 58% of middle-market firms expect to see double digit growth in 2019, twice the percentage as last year.

According to this report, Leadership Teams of 2019 are “concentrating on proactively managing risks and seizing the upside opportunities of disruption. Global executives are more bullish in their outlook than many economic and business commentators.”

Reshape. Reimagine. Reinvent.

Companies are laying the foundation for their future growth in three key ways.

Reshaping results — instilling financial discipline while realigning portfolios — optimizing strategic, operational and commercial performance to future proof growth.”

Reimagining their ecosystems — looking at more innovative business models and collaborations to access new markets and customers.”

Reinventing their future — learning from the past while envisioning the future in a digitally enabled, hyper-speed world.”

More Survey Results

Acknowledged a slowing economy as the primary risk to their business.

Of executives expect revenue growth of 6-16% in the next year.

See the economy as improving.

Expect to acquire in the next 12 months.

Aim to add new markets, customers and intellectual property (IP).

I find this last finding encouraging. Is it time to rethink? All the best intentions in the world are useless in the face of an outdated or dysfunctional business model. The only way to grow your business without relying on a continual infusion of capital is to find a sustainable business model – one that that generates the cash necessary to fund continued growth of your business.

Are you constantly thinking about how to create value and build new businesses, or how to improve or transform your company? Are you looking to innovate around your business model to ensure you are not the next obituary in the business news? It may be time to rethink. Check out my blog Is It Time To Rethink Your Business Model?.

This study gives us all a lot to think about.  And it provides great insight into strategy as we move into Quarter 2.  Do you have your quarterly and annual planning sessions on the calendar?  Contact me to discuss how to apply these findings in your business.

All the best

About the study: The Global Capital Confidence Barometer gauges corporate confidence in the economic outlook. It is a regular survey of senior executives from large companies around the world. In February and March 2019, they surveyed a panel of more than 2,900 executives in 47 countries; 68% were CEOs, CFOs and other C-level executives. Respondents represented 14 sectors, including financial services, consumer products and retail, technology, life sciences, automotive and transportation, oil and gas, power and utilities, mining and metals, advanced manufacturing, and real estate, hospitality and construction. Global company ownership was as follows: publicly listed (54%), privately owned (40%), family owned (4%) and government or state owned (2%).

© 2019-2020 David Paul Carter. All rights reserved.

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