With more people having access to business information, markets are becoming more efficient and effective. To remain competitive, companies are forced to rethink every aspect of their business and their basic assumptions – their business models of pricing, demand, delivery, inventory management, marketing strategies, and branding.
The competitiveness paradigm discussed in the last chapter infects all companies. And, as Brand U employees and consultants we’re forced to adapt accordingly. Some companies sell entire business units, outsource work, surgically downsize, or downsize haphazardly across the board. What were the business reasons for companies to downsize haphazardly? According to the Economist Magazine, there were two reasons for a massive organizational transformation: 1. the size of the company didn’t necessarily guarantee a competitive advantage anymore and 2. giant companies were humbled by this revelation.
The competitiveness paradigm and its effects are illustrated in Dilbert. Companies will do the stupidest things to maintain some semblance of competitiveness by adopting the fad of the week. Knee-jerk reengineering is an excellent example of a paradigm that sowed its own seeds of destruction. The need for competitiveness is often the justification that old systems and processes should be radically redesigned and thousands of people should be displaced. Result: more Brand U’s.