The Adaptive Growth Paradox: Navigating the New Terrain of Corporate Success for Companies

The Adaptive Growth Paradox: Navigating the New Terrain of Corporate Success for Companies

This is where the global corporate world has finally begun to find itself face-to-face with a very complex and multilayered set of recent challenges that traditional measures of growth are not able to capture.?

I refer to the process as the "Adaptive Growth Paradox" in action.

This updated concept reflects the complex dynamics, especially the tension between short-term profitability through pricing and long-term sustainability considering the volume and consumer reactions.

It gives recognition to the many twists and turns of the current business environment but positions them more as a puzzle to be solved rather than an insurmountable problem.

Relevant factors could be many, but, listing some for further exploration:

  • Over-reliance on legacy categories and pricing-driven growth focus
  • Lagging insights
  • Not Measuring it Right: not tracking both through absolute volume growth and growth adjusted for category performance.
  • Contribution margin: Instead of focusing purely on profit margins, look at the contribution margin per product or category

Team and Consumer management:

  • Contextualized targets: Instead of absolute growth metrics, how about using category-based KPIs (e.g., did they outperform the category decline?)
  • Innovation-driven KPIs: Factor in employees' contributions toward long-term innovation (e.g., contribution to successful new product launches or digital transformation efforts), as these indicate forward-looking value.
  • Consumer churn and loyalty metrics: Track consumer retention rates across key demographics to identify whether volume loss is due to shifting consumer loyalty or external competitive pressures.

Drawing inspiration from The Tech industry's ability to pivot quickly during market shifts, such as the rise of cloud computing or AI, serves as a great example

The Adaptive Growth Paradox calls on us to redefine success and growth altogether. It's the call for a more refined level of business strategy; one that balances old volume metrics against new value-creation and market-adaptation indicators.


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?? About me: @Defileap Consulting | Consumer strategy-Innovation-Growth?acceleration

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