Adapting the business model to create flexibility
There has been much talk for the last decade about having an agile strategy or being a flexible company. This is seen to be even more important in crisis situations – such as much of the world is currently facing. However, although there is a great deal of information about the “why”, there is less about the HOW and far less about real case studies of such.. So when we came across this article about pop-up shops (Inc. mahgazine) we thought we should publicise it as an example of how this can work in practice.
The article discusses how a New York City beauty chain store launches pop-up shops (temporary shops) to capitalise on the Halloween season – with significant success. This may sound like a tactical or short-term move – but in reality it is part of their overall strategy and is carefully planned.
For us, there are 2 points of particular interest:
- They use a model that seems to be more similar to a prototyping model than more traditional strategic models. They try, learn and refine based on their new knowledge.
- It is built into their overall strategy. For instance, if a particular pop-up store is successful in attracting young females they may convert the temporary store into a permanent one as the location obviously works for their target market.
We recommend you read the short article (click on the link) and while doing so, consider whether or not there may be analagous things you might be doing to to generate new revenue streams – especially if you are suffering in the current crisis. Are there parts of your business model that may not be as “fixed” as you believe? (eg Do retail stores have to be permanent fixtures? Must you own manufacturing facilities or warehouses?)
Look out for the latest in our series The 7 Habits of Highly Effective Decision Makers: Habit 3 Using Visualisation. In this document, you will find ideas about using visualisation to stimulate creativity and innovation – which could be useful in thinking about your agile strategy (Habit 3 to be published tomorrow 11 October 2011)
If you would like to discuss how you might go about deciding whether you should make your strategy more agile or how you should go about it, drop Simon a line at firstname.lastname@example.org.
The 7 Habits of Highly Effective Decision Makers
Why do strategic decisions go wrong? What are the consequences? What distinguishes the great decision makers from the rest of the pack?
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The 7 habits of highly effective decision makers
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YouTube (accompanied by “Changes” by David Bowie)
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