Introduction to Stage 7 – Adaptation
Businesses which reach this stage normally have a number of factors pushing them to adapt, these are normally grounded in changes either to the micro or macro environments. Businesses at this stage will normally be entering a phase of rapid change and will have to have secured the required finances to develop. At this point key management is in place with a set of operational systems. Operational and strategic planning are now a key focus. The organisation is decentralised and, at least in part, divisionalised. The entrepreneur delegates to key managers who must be very competent to handle a growing and complex business environment. The systems, strained by growth, are becoming more refined and extensive. Both operational and strategic planning are being done and involve specific managers. The entrepreneur and the business have become reasonably separate, yet the company is still dominated by both the entrepreneur’s presence and stock control. The entrepreneur must be able to manage other investors.
Adaptation Stage Compendium
The Adaptation stage represents a crucial phase in a business’s lifecycle where the emphasis shifts towards ensuring sustainability amidst evolving market conditions. According to Blank (2013), businesses need to adopt a ‘Continuous Innovation’ approach to discover valid business ideas that align with changing customer needs and market dynamics.
The academic paper on business lifecycles underscores the importance of leveraging data analytics and customer feedback to steer the ideation process. For instance, Amazon, a global e-commerce giant, continuously adapts its business model based on customer behavior and market trends. Their introduction of Amazon Prime and Amazon Web Services (AWS) are testament to how a company can diversify and adapt to sustain growth (Kshetri, 2018).
Moreover, the proactive engagement of stakeholders is pivotal in unearthing viable business ideas. Engaging with customers, suppliers, and other stakeholders helps in understanding the changing market dynamics. For instance, Adobe transitioned from selling packaged software to a cloud-based subscription model, Adobe Creative Cloud, after recognizing the market’s shift towards cloud computing (Cusumano, 2014).
Furthermore, businesses at this stage often leverage technological advancements to drive innovation. For example, Domino’s Pizza employed AI and data analytics to improve customer service and operational efficiency, which in turn helped in ideating new service models like drone delivery (Wirtz & Zeithaml, 2018).
The adaptation stage also necessitates a culture of agility and openness to change within the organization. Companies like Google and 3M encourage their employees to spend time on personal projects, which often leads to the discovery of new business ideas.
In conclusion, the adaptation stage demands a holistic approach encompassing customer engagement, stakeholder involvement, technological adoption, and a culture promoting innovation to discover valid business ideas. By embracing these practices, businesses can better align with evolving market conditions, ensuring their longevity and success.
References:
- Blank, S. (2013). Why the Lean Start-Up Changes Everything. Harvard Business Review.
- Kshetri, N. (2018). 1 – The global cybercrime industry. In The Global Cybercrime Industry (pp. 1-22). Springer.
- Cusumano, M. A. (2014). The Business of Software: What Every Manager, Programmer, and Entrepreneur Must Know to Thrive and Survive in Good Times and Bad. Free Press.
- Wirtz, B. W., & Zeithaml, V. A. (2018). Cost-based Pricing. In Pricing Strategy (pp. 23-41). Springer.
Entrepreneur Tips
Here are five tips that could help entrepreneurs navigate through the Adaptation stage of their business:
- Continuous Learning and Market Awareness:
- Stay updated with the latest market trends, technological advancements, and consumer preferences. Engage in continuous learning and encourage your team to do the same. Understanding the evolving market landscape is crucial for adaptation.
- Customer Feedback:
- Regularly collect and analyze customer feedback to understand their evolving needs and preferences. Use this feedback to make necessary adjustments to your products, services, or business model.
- Flexible Business Model:
- Maintain a flexible business model that can adapt to changing market conditions. Be open to pivoting your business model if necessary, to stay relevant and competitive.
- Invest in Technology:
- Leverage technological advancements to improve your operations, customer service, and product offerings. Investing in technology can also provide you with valuable data and insights that can inform your adaptation strategies.
- Promote a Culture of Innovation:
- Foster a culture of innovation within your organization. Encourage your team to come up with new ideas and solutions to the challenges your business may face. An innovative culture can help your business stay ahead of the curve and adapt to changing market dynamics.
By following these tips, entrepreneurs can better prepare themselves and their businesses to adapt to the ever-changing market conditions and ensure sustained success.
Further Reading
View the original paper here, and the blogs in this series:
9 Stages of Enterprise Creation: Stage 1 – Discovery
9 Stages of Enterprise Creation: Stage 2 – Modeling
9 Stages of Enterprise Creation: Stage 3 – Startup
9 Stages of Enterprise Creation: Stage 4 – Existence
9 Stages of Enterprise Creation: Stage 5 – Survival
9 Stages of Enterprise Creation: Stage 6 – Discovery
9 Stages of Enterprise Creation: Stage 7 – Adaptation
9 Stages of Enterprise Creation: Stage 8 – Independence
9 Stages of Enterprise Creation: Stage 9 – Exit