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Disruption 'Toys are for them' and 'Package holidays unpackaged'

Another couple of companies that once led in their business segment have encountered serious Trading issues.

'Toys R Us’, a birthday and Christmas salvation to any parents currently over the age of 50, has just filed for bankruptcy in the USA. A reported cause being the progressive penetration of Amazon, Walmart and others, as shopping continues to move online.

Monarch, once the company of choice for package holidays, was forced to stop flying at the end of September, finally being unable to compete with the consequences of disaggregation of flights and hotels, both readily and cheaply available on-line.

A consequence of ‘business disruption'?

Those businesses most vulnerable to accelerating disruption have recently been reported by Strategy&. The top 6 being:

 

  • Internet Services
  • IT Services
  • Store and Distributiors
  • Building Products
  • Clothing and Fashion
  • Healthcare Equipment

 

Where does your business sit in this list?
If you have old supplier contracts in these areas perhaps it is time to review them?
What do Business leaders do, and not do, about this growing challenge?

Refinance?

One thing that companies often do is to restructure their debt. Both Toys R Us and Monarch reorganised their debt. This is important, and can put off the problems for a while, but if your business is vulnerable., unless you review your business model, debt restructuring will not be sufficient.

Pick up weak signals

Many people are aware of the boiling frog syndrome. For examples a slow and persistent loss of market share that is ignored for various spurious reasons, can often turn into an irreversible challenge and like the frog, your business dies.

Listen, learn and then act

There is every reason to follow Corporal Jones’ mantra ‘Don’t panic, don’t panic’. The threats are serious but the solutions are not always obvious. Jumping from one bowl of hot water to another does not save the frog. Leaders need to understand the challenges, listen, learn and then act. 
A good way to listen and learn is to attend a Tinderbox workshop on Disruption. Excellent examples are given and suggestions made. You can learn from the experience of other participants and speak to Tinderbox about your own challenges.

If you are interested in attending any of our highly acclaimed workshops or would like to arrange a no obligations meeting, contact us at: ignite@tinderboxbusinessdevelopment.co.uk or call us on 0116 232 5231.  Alternatively contact me personally at the contact points below.

David Beer

Tinderbox Partner

david.b@tinderboxbusinessdevelopment.co.uk

07423 059356

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