Just when you think your business has everything figured out, something happens in the market that can have a profound impact on your bottom line. Sometimes your largest competitor will decide to change their business. Sometimes the government will pass new laws. Sometimes your customers will change their behaviours. Sometimes the market changes for unclear reasons. Whatever the case may be you can always be rest assured that nothing stays the same indefinitely and if you are paying attention, you may be able to capitalize on changes.
Ever heard of Lipton Tea? Unilever, which owns the brand along with numerous other consumer brands, has decided to undertake a review of the Lipton Tea brand as it recently reported its slowest quarterly growth in more than a decade. It seems that folks are drinking less tea and increasing their consumption of coffee through espresso machines and cafes around the world. This poses a problem for Unilever as they are a large company that works hard to increase its revenue and marketshare through its global infrastructure of people and resources. If growth is not happening, Unilever needs to deploy their people and resources into brands that are performing and shed brands that are not. Lipton Tea may find itself under new management in the not so distant future.
There are times when changes in your market will give you the opportunity to reconsider aspects of your business. These changes come when you least expect it and generally cannot be anticipated. They are referred to as “black swans” and can have a very positive impact on your business if you are ready to respond. A major competitor being sold. A government making changes to its budget. An election. There are numerous events that occur every year that if responded to properly can have improve your bottom line. What are you doing to make sure your business is ready to capitalize on unforeseen changes in the market?