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Last FM: The internet radio and music community and one of the world’s
largest social music platforms which in May 2007 announced a £140
million take over by American media giant CBS.
The Body Shop: This was a cosmetics retailer business which was sold
to French cosmetics giant L’Oreal in a £652 million deal.
Based on these cases, The London School of Economics study identified
the following points as key to business success:
Being Different
The study found that by being able to distinguish oneself from
competitors, one increases recognition. This can be done by setting up
new business units across the world. Take an example of the Last
FM Business that achieved difference by becoming one of the first
websites to allow artists to have their music streamed online. This
made them to make profits through advertising and selling to
affiliates.
There are reasons why people would buy from one business and not the
other. It is not good enough to be the same as others in the market
place. According to the study, Body Shop Business achieved a
competitive edge by combining an issue, which people felt very
passionately about, namely the environment with health and beauty
products. By so doing, the company differentiated itself from the
rest.
Collaboration/ partnership
Collaboration is a fundamental element for business success. According
to the study, Last FM company had to make the public aware of their
website and find a way for people to listen without involving the
music industry. The company realized it needed a partner to achieve
this and by working with Audioscrobbler (a system that builds personal
online music profiles by monitoring what users play on their
computers) Last FM was able to boost awareness and its profile.
Under the old school of thought, companies recruited the best and the
brightest, conducted research and development within their own walls.
Whoever could get a new product to market first was the winner. But
under the new Open Innovation Model, as Chesbrough (2006) observes,
companies recognize that no one can possibly have all the smart
people. In as much as one needs to have ideas based on inside the
company, there is also need to have ideas from external innovators and
entrepreneurs. This brings in more enrichment in the very company and
forms the basis for enhanced performance in the market place.
In any business, the art of networking remains the hallmark of
success. Entrepreneurs practicing the art of business success know the
power of networks. They take the time to identify and build
relationships with key peers, mentors, and advisors. This inner
network
provides support, direction, and an increased number of people to
assist. Having an inner network of five people who have a network of
five more, grows the network exponentially.
Getting help from others/ outsourcing
SMEs need to focus on their business, increase turnover, and improve
quality. To do this, SMEs need to embrace outsourcing services. This
allows SMEs time to concentrate on building their business and not
worrying about various tasks that cannot be handled all at once.
The conclusion of the report showed any new SME has a number of
factors to consider when analyzing how to become successful. Having a
dynamic and original idea is important, as is using the help of others
where necessary.
Adaptability to market dynamics
Business success requires the ability to adapt to changing situations.
Nothing ever goes as planned. The world of business is full of
surprises and unforeseen events. Using the habit of adaptability
allows business owners to respond to circumstances with the ability to
change course and act without complete information. Being flexible
allows us to respond to changes without being paralyzed with fear and
uncertainty.
Given that the market is a socially constructed institution for
governance of economic activities, the market is an aspect of social
order. As such, it involves a lot of dynamics / changes influenced by
the very changing social behaviour of market actors.
Michael Dell's success can be traced back to a brand new Apple II
computer which, at the age of 15, he completely took apart, just to
see if he could build it back up again. He could and he did, and then
he went on to build something else altogether. The first thing to bear
in mind is that, in an environment of increasing market forces, the
survivors will be those who are able to unlearn and relearn. It is not
about doing less or doing more, but it is about doing different, it is
about being flexible, adaptable. When market circumstances change
again, as inevitably they will, it will be about doing things
differently again. Adaptability is all that is called for to keep up
with market dynamics.
Being Client Centered
Business success requires an unwavering commitment to the client. This
commitment encompasses a mindset of understanding the clients' world.
Understanding the client wants and needs provides the business with a
greater opportunity to earn a loyal customer base. The survival of an
entrepreneur in the market place basically depends upon customer. Thus
customer relationship strategy is an approach that entrepreneurs
should embrace for their own survival.
Being opportunistically engineered
Problems are a regular part of business life. These range from staff
issues, customer misunderstandings, cash crunches, and list goes on
and on. Thus, in order to achieve business success, an entrepreneur
should take an optimistic approach. This is being in position to take
opportunity in every business occurrence. Every problem has an
opportunity. Being opportunistically engineered makes the crafting of
business not only an enterprising venture but also an innovative and
an exciting one.
Conclusion
Human beings live in time and space. Thus one does not live long
enough to have all business experiences. The beauty of life lies in
the ability to learn from the experience of others. The outlined
business secrets are in written words but deeply based on the lived
experiences of successful entrepreneurs. Learning and instilling these
secrets in ones daily business life can have a dramatic effect on the
level of success. These secrets are meant to be applied by individual
entrepreneurs based on the platform of daily business experiences. He
who applies these secrets in his/her life and business, success shall
be upon him/her.
References
Chesbrough, H. (2006). Open Innovation: The New Imperative for
Creating and Profiting from Technology, Boston: Harvard
Business
School Press.
London School of
Economics
Report (2007). The Secrets of SME Success. Retrieved July, 7
from 2010 from
http://uk.businessesforsale.com/uk/the-secrets-of-sme-success |
