eoincostello

Strategy – Businesses that make brave choices (instead of muddling along) are often rewarded with success

In Advice for Start-ups on June 6, 2011 at 6:18 pm

Muddling along got Ryanair into 21 million in losses. Jan Rivkin vividly describes how in 1991, Ryanair’s top management considered four alternative plans of action to escape near-bankruptcy: (1) become the Southwest of Europe, (2) add business class, (3) become a ‘feeder’ airline operating from Shannon airport, or (4) exit the industry. Each of the first three options entailed building a different business model. Case study by Ramon Casadesus-Masanell

SMEs need to make a bold choices and pick a niche and own it. Trying to be all things to all people is a recipe for disaster on the web. Northern Irish company Systems Solutions was a great example of an SME having the guts to make brave changes.
Yelo rebranding Dok1

One of my favourite shows used to be Ramsey’s Kitchen Nightmares as it put classic micro businesses under the microscope. The common elements in most of the restaurants included:
• Owner fearful about changing the losing formula or the loss making current customers
• Owner’s lack of confidence reflected in menus that tried to be all things to all people
• Owner’s loss of interest reflected in poor behind the scenes management of the raw materials and production areas.

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