The main reason why even the biggest companies fail is the sole focus to become better.
This is good enough when the Market Conditions stay constant for a while, but when Markets are being transformed and shifted, becoming better is not good enough to even survive.
How can Big Companies with great Experience and Expertise fail so dramatically?
How can they stumble towards their own cemetery without being able to adapt or even pivot?
Why didn’t Nokia see the Rise of Smartphones coming and lost all markets to Apple?
Why didn’t Mercedes & Ford see the Rise of E-cars coming, and loose the Market to the start-up, Tesla?
Why didn’t the E-commerce juggernaut Alibaba, the Amazon of China, who has been ruling the biggest E-Commerce Market in The Wolrd for 30 years, see Pinduoduo Social Commerce coming, and losing its leadership position to a start-up that generated from scratch 800 Million Customers in only 5 years?
In the Book “The Innovator’s Dilemma / When New Technologies Cause Great Firms
to Fail“, by Harvard Professor Clayton Christenson, one of the favorite Books of Jeff Bezos, the Scenario and its causes are described in Detail.
When Companies are new, they are innovative and aggressive, they go “All in” since they have nothing to lose. Once they established a certain growth and rule their Market, the focus changes. The Recipe for Success is now found, “never change a winning team“ is translated to “never change a winning strategy “.
Instead of further revolutions, that could be risky and harm the proven success strategy the only goal is to make better what already works great.
Old companies, as many old MLM leaders, are not looking for radical change, they play it safe and just look to ” improve ” what they know already works, keep their Marketshare or maybe win a bit from a Competitor …
The result is, when new disruptive Markets are beginning to arise, there is no base of knowledge on what works, no play it safe and do it the old way …
The new Market is always conquered by the most aggressive Innovators.
That’s why in the new Markets, not the Big fishes eat the small fishes, but the fast Fishes eat the slow fish.
That’s why the unbelievable already happened:
Goodbye Nr.1 Mobile Phone of the 90`s Nokia – out of Business!
Goodbye World Leader of Cars Mercedes & VW & Ford – will soon be out of Business!
Goodbye Avon, ex Nr.1 of Direct Selling for many Decades, has already been sold.
And…. It will not stop here,
Even the biggest Companies will become extinct like old dinosaurs if they don’t learn to disrupt like startups again.
We have seen D2C online & social Commerce Companies like Amazon, Shopify, and Pinduoduo growing 1000% and more over the last 6 years while traditional Direct Selling is stagnating at 2% Growth at the same time.
What looks like a stable Market really is an Airplane that is losing speed fast!
If Direct Selling Companies are not getting up on their feet and adapting to what future customers really want, they will fall from the highest Heaven like a Stone down to the very hard ground.
Thrive to survive or you will be eaten alive !
He has built Worldwide Organizations with Millions of Partners and Customers in wellness, telecom, and home electronics.
He is the CEO of Shopwithme, a Social Commerce Company in Europe.
Christian is a Lifetime Member of The Network Marketing Magazine and one of the members of The World Leader group, dedicated to improving the image of network marketing, worldwide.
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