Even brands built to last need an agile strategy to thrive and endure
There is no ironclad law that a company will continue to grow, not even one renowned for excellence
The following contribution is by Stefan Stern who is director of the London-based think tank High Pay Centre. He writes regularly for the Financial Times, the Guardian and Management Today magazine, among other outlets.
The author, author of “How to be a better leader”, is a visiting professor at Bayes Business School at City, University of London
Until relatively recently, if you asked someone to describe their idea of an established world-class European company, Volkswagen seemed likely to be mentioned.
VW, which remains the world’s second-largest carmaker by volume, despite a diesel emissions scandal that came to light in 2015, is a brand that suggests strength, reliability and engineering robustness; a company that, like its products, is built to last. So it is surprising to read reports of possible factory closures, with job losses and pay cuts of 10 percent, for the first time in Volkswagen’s 87-year history.
This kind of thing is not supposed to happen — at least not at this company
Yet there is no iron law that a company will continue to grow, even one with a well-deserved reputation for excellence.
For VW and its automotive peers, the emergence and rise of electric vehicles (and, in particular, cheaper, subsidized Chinese models) has shaken up the market. It has been an inevitable disruption.
The Volkswagen scandal shows that corporate culture matters
And, when a company appears successful and powerful, there can be a delay before management makes the necessary changes.
“Some companies remain hesitant to change course,” says David Bach, president of the IMD business school in Lausanne. But investors will notice. “Capital markets can be ruthless, and they can be better than some managers at picking winners,” she notes.
Sometimes, it takes new leadership to reinvent a company, as happened at Microsoft, when Satya Nadella helped lead a process through which an ageing software company became a reinvigorated tech giant, at the forefront of the artificial intelligence revolution.
Perhaps introducing (or, rather, reintroducing) an entrepreneurial spirit can boost the longevity and growth prospects of an established company
Monique Boddington, an associate professor at the Judge Business School at the University of Cambridge, agrees that the adaptability of entrepreneurs is a quality that can help a company of any size.
But that adaptability can’t always take the form of (self-)disruption, she adds.
“When you think about new technologies, are they really disruptive or, in fact, iterative? Look at the success of Nvidia [the dominant chipmaker],” she says.
“They were never really disruptive, even if they ended up taking over an industry. It was an iterative development. Decades ago I used their chips when I played video games.”
Companies can also renew themselves by “bringing the outside in,” sometimes called “open innovation.”
Big pharmaceutical groups have survived, out of necessity, in part by acquiring or partnering with startups and smaller companies that have developed new treatments; Pfizer’s work with BioNTech to develop a Covid vaccine is an obvious example.
The toy company Lego kept going by encouraging inventiveness among its followers and customers, co-creating new products and services.
The verb “pivot,” which seems deceptively simple, is sometimes used to describe what companies must do to survive and grow.
The implication is that a more or less dignified leap can be made from one form of activity to another. But for a large company, or even for an individual, pivoting is not necessarily straightforward.
Other approaches have been suggested over the years. Some have argued for a “blue ocean strategy,” which involves finding new and perhaps uncontested markets.
Chris Zook of the consultancy Bain & Co argued for a smart focus on the core of the business, perhaps taking advantage of growth opportunities in adjacent markets.
Julian Birkinshaw, a former student at London Business School but now dean of the Ivey Business School in Canada, has shown how corporate adventurism (that is, fostering new business ideas internally) can bring rewards.
In the 1980s, a team of planners at Shell, the oil giant, studied companies that had been around and survived even longer than it had (the company was around 100 years old at the time). This study led to the 1997 publication of the Harvard Business Review article, later a book, titled “The Living Company,” by former Shell planning chief Arie de Geus.
What helps companies endure longer than others?
The central question was: Why do so many companies die so young? “Few other institutions – churches, armies or universities – have the dismal record of the corporation,” de Geus wrote. “What I have come to call living companies have a personality that allows them to evolve harmoniously,” he continued.
“They know who they are, understand how they fit into the world, value new ideas and new people, and manage their money in a way that allows them to govern their future.”
De Geus found that “living companies” welcomed new ideas.
“The long-lived companies in our study tolerated marginal activities – experiments and eccentricities that tested their capacity for understanding.”
“They recognised that new companies may have no relationship to existing companies and that the act of starting a business need not be centrally controlled.”
In Europe, concerns about the longevity and performance of companies are not limited to the VW boardroom. It is an issue that concerns the EU as a whole. The recipe, contained in Mario Draghi’s report on competitiveness, published in September, is more investment and a better-coordinated capital market.
Competitive resilience
But to survive and grow, companies also need what General Chance Saltzman, head of the US Army Space Force, has called “competitive resilience.” This is the quality that the longest-lived companies display.
13 Key Strategies for Building a Successful Brand in Today’s Economy
The following contribution is from the Forbes Coaches Council
A brand is much more than a logo or its visual elements, and building a strong brand is often just as, if not more, important than the product or service itself.
Factors that can be negative
A crowded market, not understanding your target customer, inexperience – all of these factors can affect your ability to succeed, especially as a first-time business owner.
It’s easy to get carried away with overly complicated strategies, but keep your eye on the core elements when it comes to building your brand. Below, members of the Forbes Coaches Council explain what they are:
13 Key Ways to Build a Successful Brand in Today’s Economy
- Take Advantage of the Testimonial Economy
We now live in the testimonial economy. We no longer listen to what others say about themselves. Instead, we go online to find out what people are saying about them.
Influenced by their feedback, we make a more informed purchasing decision. Want to build a successful brand? Take advantage of the testimonial economy by creating a community of ambassadors willing to share their love for your brand online. – Mark S. Babbitt, YouTern
- Create an Emotional Appeal
A key way to build a successful brand is to use emotive appeal by creating an association between the product or service and an emotion.
When we understand the key desires and pain points of our target market, we can build a brand personality that shows how our product can help our target market achieve their desired state of mind. Most purchasing decisions are emotional in nature. – Carolin Soldo, Carolin SoldoCoaching & Events
- Focus on Creating Value for Others
People rarely remember what you said or did, but they do remember how you made them feel. Trust is the most important currency in the 21st century, and the person you are serving should feel the authenticity of your character and experience your competence firsthand.
Create value for others three times before you ask for something in return. If your service is unique, your brand will be solidified. – Michael S. Seaver, Seaver Consulting, LLC
- Use your customers’ self-talk
Speak the language of your potential customers. We tend to use marketing words to define our brand.
What is your potential customer saying to their partner at the dinner table? Are they using words like «alignment, collaboration, or compromise»?
Chances are they’re saying, «We can’t get things done, no one cares that we’re behind, we’re missing deadlines, again.» Use what they say in your branding materials. – Debora McLaughlin, The Renegade Leader Coaching & Consulting Group
- Be known for a specific niche
Don’t confuse your message by telling potential customers that you’re an expert at multiple things. For example, saying you’re an image consultant for men and women is a much less powerful message than saying you’re an image consultant specializing in women over 40 who are re-entering the workforce after being stay-at-home moms. Being specific allows you to be memorable and the best in your niche. – Barbara Safani, Career Solvers
- Identify and target your ideal customer
To have a strong brand, you need to know, see, and appeal to your key demographic. The best way to do this is to create your ideal customer avatar in minute detail.
Consider geography, age, parental status, favorite TV shows, goals, online status, education level, fears, dreams, weaknesses, dislikes, etc. When you know who this person is, you can change the message to speak directly to them. – Laura DeCarlo, International Career Director
- Be consistent
A brand is a promise of an experience and is directly related to trust. If you want to build a successful brand, first get clear on the brand personality.
What are the ABCs: brand attributes, behaviors, and characteristics?
Then, make sure that every interaction a customer has with the brand infuses those ABCs into it. Consistency builds trust and solidifies the brand. – Michelle Tillis Lederman, Executive Essentials
- Understand that branding isn’t about positioning
Let go of the idea that branding is about positioning. Your brand is the sum total of how people perceive you. The experience goes beyond visual identity and marketing messages.
Yes, adjust your messaging, but also look for ways to wow people in their encounters with you. View every touchpoint as an opportunity to elevate your customers and make them feel better about themselves, not just your brand. – Joseph Ranseth, JosephRanseth.com
- Find the intersection
A successful brand is the intersection between what you love to do, what you’re amazing at, and what others want and need. If you love what you do but others don’t need it, then it’s a hobby.
To build a brand, your gifts must resonate deeply and fulfill a need in your audience. Do this consistently over time and your brand will succeed. – Tara Padua, NextFem
- Share your brand assets in a thought leadership campaign
You used to need a blog to successfully promote your brand, but today LinkedIn makes it easy through its long-form posting feature.
By taking advantage of this feature, discussion posts, and status updates, you can gently promote your brand assets without making it seem like you’re promoting yourself at all.
Focus on sharing genuinely useful content, expertise, and wisdom to attract your ideal market. – Cheryl Lynch Simpson, Executive Resume Rescue
- Be authentic
Don’t try to be something you’re not. Others pick up on that, and it stifles your confidence. Be who you are (the good and the bad) to attract others who «get» you. That’s what you want in your tribe.
Make sure your online visual representation matches what people see when they meet you in person. Highlight your self-confidence, your abilities, and show your authenticity. – Terra Bohlmann, BrightBound
- Notice what makes your heart beat
When you tell others what you do or share your best self with a client or potential client, what makes your heart beat?
What excites you? What do you say over and over again, because it’s core to who you are and how you (and your company) serve the world? That’s your message.
And that’s the centerpiece of what will become your brand. It’s you. Start there. – Wendy Pitts Reeves, C2C Consulting, PLLC
- Define your brand’s DNA
DNA is defined as «fundamental, distinctive characteristics/qualities of something» and «immutable.»
If your team can’t quickly recite your brand’s DNA from memory, put pen to paper, create a list of go-to brands from an aspirational perspective, and find common themes.
Identify the key qualities that embody your brand. Whether it’s a price advantage or a niche, define your core and stay true to it. – Rachel Mestre, Rachel Mestre LLC
Brand Strategy: Definition and Guide
The following contribution is from the Qualtrics portal, which defines itself as: We are Qualtrics. Each of us owns the short- and long-term success of our company, delivering results with prudence and responsibility.
CUSTOMER OBSESSED
We are committed to helping our customers succeed. We view mistakes as opportunities to grow. We listen, we learn, we go the extra mile, and we put our customers first.
ONE TEAM
We are a diverse, equitable, and inclusive team. Together we are stronger and we value our differences. We strive to help each other get better at what we do, individually and collectively.
What is a brand strategy, how do you create one, and why do you need one?
Whether you are a new company or an existing brand with well-established customer loyalty, having a winning brand strategy is critical to sustainable business success.
Whether you want to grow, dominate the category, or disrupt the market, a strategy to get there will help you achieve those business goals and stay on track.
But before we outline how a brand strategy is created and the benefits that come with it, let’s discuss exactly what a brand strategy is.
What is a brand strategy?
Think of your brand strategy as your North Star. It guides your decisions about what you do and, just as importantly, what you don’t do.
The strategy is informed once you decide where you are in the market, who you want to target, and how you’re going to target them.
Based on market research, your brand strategy helps give you a direction to follow, along which you can set goals to evaluate and track progress.
The goal is to make the right choices to bring an effective brand strategy to life. Ask yourself: What are we going to do, and why are we going to do it?
Research will help inform that choice.
These choices (the decisions you make) should be in line with your strategy; choices like how much money you’re going to spend, how you’re going to divide the budget, and what tactics you’re going to use.
