Countering the Biggest Risk of All

A R T I C L E www.hbr.org Countering the Biggest Risk of all(prenominal) by Adrian J. Slywotzky and John Drzik Included with this full-text Harvard Business surveil article: 1 Article Summary The Idea in Briefâ€"the core idea The Idea in formulaâ€"putting the idea to work 2 Countering the Biggest Risk of All 13 Further Reading A list of cerebrate materials, with annotations to guide further exploration of the articles ideas and applications product 977X Countering the Biggest Risk of All The Idea in Brief Youve insured your company against earthquakes, weasel-worded against interest-rate hikes, and created backup data systems. But what about new technologies that may render your products obsolete? Sudden shifts in customer tastes that could redefine your industry? A one-of-a-kind competitor who might seize the social lions share of your market? These and other forms of strategic hazard can disrupt and even destroy your business. Over the prehistorical 12 years, theyve caused more than one-third of Fortune 1000 companies to bear 60%-plus of their value in one year. How to avoid this constituent? Apply powerful strategic-risk countermeasures.

For example, to insure against technology-shift risk, Microsoft used double predict: It invested in the OS/2 and Windows operating systems so it could nail no matter which version prevailed. Recognizing Wal-Marts threat as a one-of-a-kind rival, Tar set out changed its business design: It transformed itself from a conventional discounter into a low-price but style-conscious retailer that attracts diverse customers than Wal-Marts. By countering strategic risk, you protect your companys value, plug away your competitive position, and even uncover surprising new developing opportunities. For example, after struggling leather-goods maker Coach began using strong-growing in-market testing to anticipate customer-preference shifts, it surpassed rival Gucci in growth rate, receipts margin, and market capitalization. The Idea in Practice Technology shifts and... If you want to get a full essay, order it on our website: Orderessay

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