Thursday, November 12, 2009

Decision: Fun Stuff or Profitable Stuff?

Large corporations have an interesting dilemma today--do they focus on the profitable products they produce or do they funnel resources toward the more exciting opportunities out there?

With technology speeding ahead faster than ever, some corporations are focusing on new products, new segments and new ways of communicating. These efforts can be exhilarating and they often feel right.

At the same time if we don't watch out, the tried and true product that is allowing the corporation to survive, may be ignored. In tough economies, this can spell disaster.

Consider this : there is a corporation that makes most of its profit from one product. Yet, its energies--its emotions--are focused on a small segment that represents no profit and very little in sales. Another corporation is forsaking its bread and butter services and instead has most of its resources focused on communicating with customers in unique and fun ways.

In each of these cases, there has to be a balance. Today, there isn't enough business to go around to allow a corporation to take its eye off the ball (profitable products) and still thrive.

New ideas and technologies are vital for future growth, but you have to have a future in order to use them.

Barry LaBov
LaBov & Beyond

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