Open future markets now

It's not enough for businesses to target existing markets. But entering emerging markets too early or too late can also cost businesses. To change the passive situation, we must first introduce the concept of market cycle and put aside the outdated concept of "product life cycle". There is no growing industry in the world, it's just that some industries happen to be on the rise.

One of the reasons 3M has been successful over the past few decades is that it is always looking for new opportunities. The company's goal: Four years from now, 30 percent of the company's sales will come from products that have yet to be developed. At 3M, looking for and taking advantage of opportunities is not just a dream or a slogan, but a real implementation, which has become one of the corporate styles.

3M's visionary managers recognized that companies must be prepared to enter new markets while cultivating their current markets, and have teams equipped to develop two markets at the same time. "Corporate entrepreneurship" (corpreneurial) can provide a steady stream of impetus for this.

If you want it, you can do it.

The success of today's business depends on being able to provide products that meet the needs of the market, when the market demands it. Businesses must always provide the right products and services to the market at the right time, at the right price, and in the right place. The ability to launch products and services simultaneously with market expectations is constantly being tested by a changing market.

Many companies focus only on their current market, using the market they already have as their comfort zone. This approach is short-sighted and has the potential to threaten the very existence of a business. Although everything is calm now, the comfort of the environment for a long time can easily stifle a company's ability to respond to drastic changes in the market. When the company is in trouble, managers begin to think of ways to save the slump. The main difference between market leaders and other companies is that the management of leading companies does not wait for problems to arise, but prepares for a rainy day.

Successful companies focus on the long term, and they have two relative strategic advantages: a more objective view of the present and the future. Managers who focus only on the present often mistakenly believe that the advantages of the present will last forever. Managers of successful companies do not.

Looking long term also enables managers to outperform the current market. Their motto is Ferrari's words: "If you want it, you can do it." If a business has enough time, it can develop new products, new processes, new features, and expand into new areas. In fact, by combining foresight and corporate strategy, management can venture into uncharted territory.

No matter how successful a business is today, management must focus on how the company will look five or ten years from now. The future offers a variety of opportunities. The growth and prosperity of businesses depend on managers who have foresight and insight into opportunities; and who have the ability to strategically reposition the business in order to reap the rich fruits of opportunity in a timely manner.

To do this, the market cycle is the most important

In order to cultivate the two markets of the present and the future, when formulating strategies, companies need to abandon the concept of product cycle pursued by most managers. Product life cycle itself is a misnomer as it is meant to refer to the general industrial life cycle of a product or service. Managers tend to think of an industry as a whole, rather than a specific market or market segment. In the same industry life cycle, there are numerous markets that form, grow, mature, decline and die.

Managers who base their decisions on product cycle theory believe that the industry will last forever, and so will the market. Theodore Levitt pointed out a few years ago: "Businesses that think they are in a self-rising elevator will keep going down until they stagnate." Levitt believes that there is no growth in the world. Industry, but some industries are just in its rising period.

A manager can do more for the company if he adopts a market-cycle concept for a specific market or market segment, rather than an industry-wide product cycle concept. The concept of market cycles emphasizes: finding long-term opportunities in one or more industries. Managers should focus their attention and the company's resources on finding opportunities, focusing on both current and emerging markets.

Many companies fail because their managers lack the timing skills that have always played an important role in business development. Attention should be paid to the timing of the following stages: when a company is starting up, when a new product or service is introduced, when a new process is adopted, when it enters a new field, when the company begins to expand.

Entrepreneurial talent is mostly associated with taking advantage of opportunities and building businesses. Sustained success is only possible if management can develop and drive a sustainable development-oriented strategy and corporate culture. Identifying market opportunities is more important than judicious timing. The accelerated changing market environment means better opportunities for entrepreneurs with forward-looking vision and the ability to quickly adjust the direction of business. While it is true that there are many more opportunities in the market than in the past, managers must recognize that "windows of opportunity" are opening and closing faster than ever before, and the situation can quickly reverse to having market potential players. The challenges are also stronger, more complex and demanding markets, and it takes more time to improve the capabilities of entrepreneurs.

When Jack Welch became CEO of General Electric (GE), he recognized the importance of timing. He believes that it is necessary to divest some of GE's products, equipment and companies for the reasons: First, some markets and products are shrinking. If you don't get out now, it will be too late. Second, GE's cash supply is not unlimited. If you want to invest in the future, you must withdraw from some of the current projects. 3. By investing resources in advanced technologies and emerging markets, GE will be able to grasp the future of the company and accumulate enormous wealth for its shareholders.

Seize the opportunity too soon, too late

Visionary companies are keenly aware that the "window of opportunity" is about to open. Attempts to break in before the windows were opened and attempts to break in after the windows were closed were equally tragic. Success comes from predicting exactly when the window will open. Akio Morita, founder of Sony, captured the essence of visionary leadership, saying, "Our products should always be at the forefront of market trends. We believe that new products can lead to mass consumption, not Go ask what the consumer wants."

It's like playing a skeet shooter. If you aim at the clay slingshot, the bullet will fall behind. If you go too far, the bullet will pass in front of the target again. Management is about making sure that the company's innovations are brought to market, rather than rushing to market a new product or service before the market is ready. As president of Celestial Seasonings, Morris Siegel recognized that when his company developed a line of herbal teas in various flavors, the general public in the United States had not yet embraced healthy living. So Siegel only sold the product in health food stores before rolling it out to grocery stores and supermarkets.

This example illustrates an interesting point: forward-thinking companies should seek out customers who are also forward-thinking. If a company wants to be a provider of trend-setting products or services, it should strive to cultivate a symbiotic relationship with trend-setting consumers. Visionary companies succeed because they see themselves as problem solvers for their customers. Close contact with potential customers, the company is likely to produce products that meet customer needs as soon as possible. Many forward-thinking companies form alliances or joint ventures with other companies to better capitalize on market opportunities and respond to customer needs. By reaching out to trend-leading customers, companies have the opportunity to experiment based on how consumers really feel.

Future growth and success depends on your company's ability to keep pace with rapidly changing markets. Your management team must improve its ability to forecast in emerging markets. Few companies are ahead every time, and things change so quickly that it's impossible to anticipate everything that's going to happen. In this case, being a quick follower or a quick responder will determine whether the business thrives or barely survives.

Original text excerpted with permission from The Forward-Focused Organization: Visionary Thinking and Breakthrough Leadership to Create Your Company and Future by Stephen C. Harper, published by AMACOM, a division of the American Management Association Published, author registered copyright 2001. Translated by Xiao Dongyan.

Dr. Stephen C. Harper is a professor of management at the University of North Carolina, president of the consulting firm Harper & Associates, and author of The McGraw-Hill Guide to Starting Your Own Business.