How to face and overcome challenges

A business face various kind of problems and opportunities with the time. And to overcome
these challenges a business needs different solutions. Good leadership will help the business
to gain many opportunities, creating sustainable growth for the future.

 Keeping up with the market

 As business conditions change frequently, a business have to regularly be
updated with the market. Therefore, market research should be continuous. If
not, the business will take decisions based on outdated information. And that
may lead to a business failure.
 When it’s the time of the business profit margins get squeezed due to the aging
of your product or service it’s essential to understand where your products are
in their lifecycles. It’ll help businesses to maximize overall profitability. Also,
business need to invest in research and innovations to launch new profitable
products.
 A business can carry out an extra research to keep in to keep in touch with
customer feedbacks about their new products.

 Planning for future

 As market conditions changes continuously. A business needs to update and
revisit the business plan regularly.
 Business strategies must evolve and compatible with the changing
circumstances.
 When a business has more diverse customer base it’ll spread the risks. To do
so business needs to be aware of new market opportunities. And those
opportunities have to suit with business strengths and the overall vision.

 Good cash flow and financial management

 Planning for the future helps to understand your financing needs and to
arrange funding.
 It is important to have effective supplier management and good stock control.

 Problem solving
 The business has to be alert to new problems and priorities.
 Take necessary steps to protect the business intellectual properties.

 The right systems

 The business has to follow an established management standard. It helps to
introduce best practice. practice. Quality control systems are also an important
part of convincing larger customers and driving improvements.
 Investing in the right systems will help the business in both short and long
term.

 Welcoming change
  Make sure to be updated with new technologies. The technological advances
and bad decisions led to Netflix’s growth and Blockbuster’s equally staggering
decline. Therefore, a business needs to be willing to adapt.
 Business needs to be committed to its strategies even if it involved challenging
decisions and the business have to test and learn as it’s going along.

 The customer-driven approach is better

 The blockbuster needed to understand what business, they were really in. It was
entertainment, not retail. Also, the blockbuster’s profits were dependent on
penalizing its customers.

References

Forbes (2014) A Look Back At Why Blockbuster Really Failed And Why It Didn't
Have To [Online] by Greg Satell https://www.forbes.com/sites/forbes-personal-
shopper/2021/08/26/samsung-galaxy-z-flip-3-cases/?sh=c445f85870e0
[Accessed august 2021].

Drift (2020) Netflix vs Blockbuster – 3 key takeaways [Online] by Molly Sloan

https://www.drift.com/blog/netflix-vs-blockbuster/ [Accessed august 2021].

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D.R.C. PERERA