Scaling up is a vital biz requirement

Many businesses corporation in the country, refrain from scaling up their business. They think what is the need to scale up when everything is running smooth. Scaling up will make them take steps which are out of their comfort zone. Therefore, operate from where you are. This according to me is a futile mistake that #companies make that puts them at risk.

What is scaling up? If I have to put this in simple words it would mean, that scaling up is the sum total of the image that the company has created for itself through the product and services that it offers. Companies with #short-term objectives remain where they are. Forget increasing the business, at times their business declines. We see many companies hovering in the 250-crore turnover for ages. The increase just does not come. If it comes for one year, then the next year it declines, averaging it out to the static 250 Cr mark. There are also examples of companies that are doing well and are stuck at one point.

While some book of thought state that being in one place is a good strategy, some suggest that it is just a matter of time that the market may displace you. Never think that because you have a state of art product, you are immortal. If not today, then tomorrow someone will come up with a breakthrough product or a strategy and create restlessness. Let me give you an example. There was a time when black film were used in cars to protect passengers from the sun. It was a high-demand market and then a guideline came from the government that these films are banned. Result the entire industry crashed. An energy drink company may think that they are the leader and this gives them the authority to charge a premium, and suddenly a company enters with a good product that sells half the price. Remember, that everything revolves understand consumer behavior. When you know that a certain segment (low or middle) can switch over if they get a better product and you target them, your chance of success is a little high. On the other hand, the market leader thinking that if the consumer wants to drink my beverage, he has to pay my price, may backfire.

Therefore, scale-up. The above are just two examples. There are many examples when big corporations have lost everything they earned just because they could not scale up. Remember Nokia Kodak (Could not gauge the consumer transformation). In the FMCG business, there are many examples where brands with very good products could not make it big. Because they did not encash on the opportunity, somebody else came in, upgraded the product offering, and went for the kill.

Do you think you are safe? Do not think so. Maybe someone is gearing up to de-throw you from the marketing and is working in quietly on it. A times come and they just boom the market, eating up your market share and #disrupting the entire business. ?

Sharp Consulting and Implementing Company is a consulting firm that helps companies to scale up. With the marketing intelligence that we have, we can help companies of any size to skyrocket their business. We are once asked by a client, is scaling up difficult. We answered, that it is not difficult but it is a very challenging task.

Scale-up now.

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