Traps That Companies Often Stumble
Traps! Nowadays they are widely discussed by researchers studying the psychology of company’s success. Robert Herbold offers the list of common traps into which the companies often stumble having achieved a certain degree of success. Here are the most problematic and dangerous traps of our time:
Conservatism. Your business is built on the basis of certain models, schemes and technologies. Each model fits a particular period of time and market situation. But time goes by, political and financial situation is changed, government and the world at large are ruled by new laws and new players; new goods enter the market changing the customer demands. Usually these processes go on smoothly but sometimes they may have leaping fluctuation. The company that once and for all elaborated business models and schemes and do not even think of changing them for years sticking with yesterday ones will eventually fail.
Vanity. Successful companies are often super proud of its achievements and do not even notice that its production technologies and product promotion strategies have outdated, and the product itself have become inferior to the competition. The most telling example of it is the Coca-Cola Corporation, the strong and world known company that is engaged in selling carbonated drinks. The product has not been changed but the promotion strategy has an aggressive nature. Times change and people get more interested in natural and healthy food. As a result, the customer demand for natural drinks goes up.