Future threats - your opportunity!
If you can identify and act upon possible future threats, then you can position yourself in the market with an advantage over your competitors. On the other hand, if you do not foresee and act upon these threats, then you risk being left behind thereby allowing your competitors to be better positioned than you. Consequently, you will lose market share and therefore profits.
Most of the food business are in a B2B situation; you sell to supermarkets, international hotels and other major accounts. However, the demand from your clients’ customers will often affect your business in the form of a pull effect. That is, the demand from your clients’ customers will be transferred to you. Let me give you an example; if one of your key accounts is a hotel chain and the customers of this hotel chain start demanding organic based products, then this demand will be transferred to you. If you cannot meet this requirement instantly, then your client will be forced to seek the organic based products elsewhere. As a result, you will lose this precious client and your business will be affected. This is one of the trends that constitute a possible future threat or opportunity to the food business.
Another trend in the food business is that consumers are caring more and more about companies’ policies, e.g. on Corporate Social Responsibility (CSR). Consumers will not accept that poor children under horrible conditions with an extremely low salary produce the products that they are buying. It gives the consumers a bad conscience and they therefore seek products that are being produced by companies in a socially responsible manner. At the end of the day, consumers are proud to use brands that are based on high ethical standards as it also signals their own personal values and believes.
Whether this trend evolves into being a threat or an opportunity to your business is all up to you and your choice of action. The conscientious company can turn these threats into opportunities by establishing a system that cannot only ensure that the products are being produced in a responsible manner, but also disclose information to the public about their social awareness and responsibility in the production.
So, what is the next threat that you can turn into an opportunity?
Let MyAdvizor conduct an Opportunity Workshop that determines how you should cope with possible future threats and thereby prepare you for the future. It is a three-day workshop on your premises and the price is 10.300 euro + travel expenses (ex. VAT and other taxes). Call or send an email to learn more about the workshop.