Why is it so difficult to change???

Why is it so difficult to change???

Changing with the time is utmost essential. Still we see many successful companies not realizing the fact when to change their moves. When observing the trends, industries which change very fast are entertainment and education. Yet, we observe the more the company is successful, the more it difficult is it for them to change.

One major reason is that, they don’t know when exactly to change. With their tenure of success they have created an image of theirs’ which they feel should not be disturbed. Further their culture, beliefs and practices have been well adopted by their employees, which they religiously follow as they think these are the only factors for the success. And thus no one challenges them.

But one should understand strategic drift caused due to imbalance of strategy with time.

For example Nokia failed mainly because of two reasons:

Firstly, it didn't foresee the upcoming technological change and lack of flexibility in U.S. markets. In the era of fast changing technology and changing consumer behavior, Nokia under-estimated its competitors and remained more self-centered.

Big companies are often in an illusion that consumer don’t change their mind quickly. They claim that people don’t easily switch in case of superior and premium products. But they should understand that forces of mobile communication, globalization and most importantly digitization are posing great threat to the sustainability for all big shots.

To overcome above mentioned challenges the companies should take care of following to things:

• Get rid of competitive myopia – one should not focus entirely on competitors as it may cause distraction/deviation from the strategic threats and opportunities.
• Focus on "forgetting curve" – to learn something new it is necessary to forget something. This is in the context of those behaviors and activities which are no more functional and valid in industry.

                                               

One Indian brand which has been globally acknowledged for its fast adaptive nature is Amul. It has never spent more than 1% of its budget on advertising and yet is no. 1. It’s all because all its ads and campaign are designed on current scenario. They have used their mascot very well.