Every morning a deer wakes up. It knows run faster than the fastest lion are it will be killed.Every morning a lion wakes up, It must run faster than the slowest deer are it will be starved to death. DOESNT MATTER u r a lion r deer, when the sun comes up, We would BETTER BE RUNNING to survive to save our selves. This is true in all circumstances, either it is a story belongs to lion or a human being or a giant company. Everyone is running and maintaining their pace to survive and exist in system. survival of the fittest is must for all the human beings and animals on earth as it is most ecstatic principal of our life no one can prevent his/her extinction without surviving under the conditions like global warming ,earthquakes ,floods, even in games we can see most suitable players can survive , most suitable team survive. By 'fittest', of course, I don’t mean the common word physical fitness the 'fittest' referred to here are those who are the most suited to the environment, i.e. those which are best fitted to survive, those who are most adaptive and can run beyond the boundary.
Survival of the fittest" is a phrase which is shorthand for a concept relating to competition for survival or predominance. Originally applied by Herbert Spencer in his Principles of Biology of 1864, Spencer drew parallels to his ideas of economics with Charles Darwin's theories of evolution by what Darwin termed natural selection
Every company operates and sustain in market is facing this war for survival and prove the fitness interms of sustainability from all the big threats. These threats may occur in following way
The threat of substitute products
The existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases (high elasticity of demand).buyer propensity to substitute ,relative price performance of substitutes ,buyer switching costs ,perceived level of product differentiation .
The threat of the entry of new competitors
Profitable markets that yield high returns will draw firms. This results in many new entrants, which will effectively decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level (perfect competition).
The intensity of competitive rivalry
For most industries, this is the major determinant of the competitiveness of the industry. Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions such as innovation, marketing, etc.
The bargaining power of customers
Also described as the market of outputs. The ability of customers to put the firm under pressure and it also affects the customer's sensitivity to price changes.
The bargaining power of suppliers
Also described as market of inputs. Suppliers of raw materials, components, and services (such as expertise) to the firm can be a source of power over the firm. Suppliers may refuse to work with the firm, or e.g. charge excessively high prices for unique resources.
• supplier switching costs relative to firm switching costs
• degree of differentiation of inputs
• presence of substitute inputs
• supplier concentration to firm concentration ratio
• threat of forward integration by suppliers relative to the threat of backward integration by firms
• cost of inputs relative to selling price of the product
This 5 forces pulls company in their own way. To survive in the market, company need to compete with these all factors.
Lets take the example of Videocon, A sugarcane and cotton grower, Nandlal Madhavlal Dhoot set up appliance maker Videocon International Ltd. in 1985, and by the late 1980s, the group had emerged as one of the top manufacturers of television sets in India. If we will go in deep core strategies of the companies then we will find Videocon was always able to put up a fight against global players, which boasted deeper pockets, extensive product portfolios, and big expenditures on research and development. This was one of the reasons Videocon has not just survived, but emerged as one of the leading brands in the Indian market.
On another hand take the example of Odomos (mosquito cream), company came with innovative product with big bang of huge advertising policy. Initially company was doing well but could not attract the Indian customer for long time as customer did not feel the value of the product in compare with another product available in market giving the same value. So to sustain and survive company should not only go with latent requirement and focus on innovation but also need to check the competition and alternative available in market.
We have one more example like Sony started business with small telecommunication engineering corporation and came up with first tape recorder, now they expended like anything and providing the full portfolio of entertainment. They have grown like Entertainment Company and that is the core reason of their success and survival in market.
This timeless allegory reveals profound truths to individuals and organizations struggling to survive and dealing with many challenges. We all are fighting with instances which are against us. It may be time, it may be situation, changes etc. We have to overcome with these all challenges to survive and if we want to keep our separate identity in this world.
At last not least ‘Savor The Adventure And Enjoy The Taste Of New Cheese”.
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