How will your business look in 2013? What did it look like in 2005 and have you adapted to the changing world? In my youth, "coffee thanks", used to get you just that, a coffee. The best seller wall at the bookshop would get you just that, a best seller and the shoe shop sold one thing, shoes. Times change and a coffee is no longer a coffee, especially at Starbucks where a super venti frappa mocha chai with sprinkles no longer resembles the cuppa of my youth. Books disappeared at the book seller and went online via Amazon to be followed by shoes from Zappos and we all merrily bought from the new order who became experts selling one item. Times change and Starbucks no longer just sells coffee, in fact it has dropped coffee from its logo, Amazon no longer just sells books and Zappos no longer just sells shoes. Adaptability has become the catch phrase for business as new ideas and swimming in blue ocean will only give you so much time ahead of the pack.
Seems the production and mass efficiencies gained by global domination has allowed many of the larger players to look outside their field of expertise and expand into areas usually associated with supermarkets, malls and every bake house and delicatessen in your neighbourhood. Starbucks recently acquired juice companies, bakeries, tea retailers and is trying to stay ahead of consumer trends with technology initiatives started years ago with their in store CD sales. Amazon have become the world's largest online retailer, turning into a Walmart on steroids, selling everything imaginable while Zappos added clothing and accessories to their unlimited line of shoes.
The trend to diversify is not new and every global brand has tried it at one time or another. Success varies and there enough instances of companies going back to core product to marvel at how well companies like Starbucks and Amazon have been at creating new revenue streams while sticking to their original plan of world domination for one product or service, for as long as they did. Still it is the measure of truly successful companies who can adapt to change as well as Amazon and Starbucks. .
At one time Starbucks was a poster child of growth finding 55 countries desperate for a gallon of coffee for $5, in fact one satirical US newspaper joked in a headline "new Starbucks opens in restroom of existing Starbucks". When the tough years of 2008 and 2009 hit, they had to consider there was more than one offering needed to re-energise the brand, hence their foray into the world of tea, juice and the domain of the bakers to widen their approach to the consumer. With this approach they have seen a new clientele enter the "third place", the "third place" after home and work as Howard Schultz refers to Starbucks. This strategy has seen Starbucks increase their branding and awareness and increase their earnings to the highest levels in their history, serving 60 million customers every week.
Once Amazon figured out how to deliver a book to anywhere in the world, the jump to being able to deliver anything else was not a big one and the company morphed into the largest mall in the universe. Acquiring Zappos added to their domination and once this was assured, Amazon worked on aspects of their business that some thought unnecessary with such a large market share, great customer service. Adaptability is more than branching out into other products, it's about a holistic view of your offering and more often than not, it requires the human touch. It can work for all of us, after all we have adapted somewhat from the guys finger painting antelope on walls, all those years ago. Go adapt and succeed.
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