Thursday, July 28, 2005

End of the smarter sales strategy

This continues from yesterday’s post. No reinforcing loop last forever. In the above diagram, there are two such reinforcing loops between Box 1 and Box 2, Box 1 and Box 3. One possibility is that Box 1 might at some point in time innovate (Box 4) on what it offers to Box 2. Well that might keep Box 2 happy by anticipating your coustomer’s needs, it is likely to disrupt the reinforcing or virtuous cy cle between Box 1 and Box 3 (see dashed arrow). If Box 3 fail to respond successfully, the virtuous cycle between Box 1 and Box 3 slows or ends.

In an alternative scenario as shown above, Box 2 instead Box 1 could be the innovator (Box 5). If Box 1 fails to respond successfully to Box 2 changing requirements then the virtuous cycle between Box 2 and Box 1 will be negatively impacted. This will als be to the detriment of Box 3.

There are other possibilities to these two scenarios but the important point to take away is that no virtuous cycle or reinforcing loop lasts forever. So if you have worked your way to a sweet spot, do not be complacent.

No comments: