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Building Strategies In A Rapidly Changing Environment

How is technological change affecting companies ability to build effective strategies

25Nov

Today's business environment is as unstable as anything we've seen before. It's now imperative that business models are malleable in the face of frequent market fluctuations and that companies have the ability to keep up with the demands that continual technological change brings.

Through disruption, products and services have been reshaped. This has led to a change in the way companies develop their strategies, especially in regard to timeframes, as nothing can be guaranteed upon in the long-term.

Major corporations such as Kodak and Blockbuster have fallen to the pressures of technological change, further highlighting the ease at which anybody can fall from grace.

Blockbuster's demise was down to their lack of agility and an unwillingness to accept that they had to move away from the product that had served them so well in the past. Online streaming services have seen DVD rental stores become redundant due to the increase in convenience and decrease in price, the hallmarks of an excellent disruption.

In the case of Blockbuster, it's not as if the emergence of online streaming crept up on them, but with vested interests in abundance, there wasn't enough time to change their ways.

This is why in today's rapidly changing environment there has to be an emphasis on agility, and in some cases, this will mean sacrificing profitability for the sake of long-term sustainability.

Every department in a successful corporation needs strategy to be present at its core. Finance, HR and Marketing need to be aware of how their decisions affect the company from a strategic standpoint. If this is present, there's an excellent chance that a company working in unison will have all the insights it needs to mould an adaptable strategy.

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