I was talking to my brother-in-law who is running his own business for the past 20 years or so..
Got an interesting insight while talking to him...Those days, the focus of the business was on reducing the operational expenses, reducing the profit margin and focusing on Customer delight. But, these days, the focus is more on operational expenses (expenses like marketing, branding, expensive showrooms) and increased sales. In olden days, businessmen were not really thinking about increased sales and growth year-on-year. But, its apparant that, these days, any business has to be a growth business, for it to survive. Do you read the lines from the book 'Goal' here?
And there is a mad rush from every business house to achieve that double-digit growth year after year...
My question is, if every business grows "big" enough, where will the space for small and medium enterprises to sustain?. Are we doing justice to nurture a business ecosystem, where all players have a fair chance to play the game?. Or are we restricting the market open enough only for big players?.
The outcome will be increased costs, less number of choices. There has to be some way... I dont know the perfect solution.
But, the optimal solution for big as well as small players would be 'Innovation'. For big players to grow on certain targets year after year, and for small players to survive on their key strengths, its required to 'innovate' and 'innovate niche' that other players would find difficult to replicate.
I think we will reach a point where it would be 'Innovate or Die'.
In summary, Business is getting tough but interesting...