Provide Sophisticated Services
There's an anomaly in business, as the need to keep things simple is a key to success, at the same time, providing sophisticated, but detailed, and sometimes hard-to-master services can bring a tremendous boost to business, and last for years.
Welch saw that when leading General Electric (GE) and brought the company into a number of fields that gave them strong competitive advantage.
What Welch did was lay out the strength of GE in squeezing costs and boosting efficiencies; something they were very good at. This brought them into a relatively new role for them at the time, and which has continued, as a type of new consultant.
The point is if a company can help service the headaches and inefficiencies in a company, they'll be glad to give them the business in order to consentrate on what they do best.
Of course the challenge of this is a company offering the service must make up for the inefficiencies and high costs, by becoming experts in a highly challenging field.
While there is little competition in these areas, there is a reason there's little competition: few people want to tackle the huge problem associated with it.
If a company is willing and able to do it, they can lock into a revenue stream that could be almost unchallenged over a long period of time.
Even if a competitor enters into it, they could take years to catch up with where you're at. And even if they do, you should be ahead of them if you continue to improve.
This is definitely a worthwhile area to compete in. I think it's even more imperative to have the right leadership, plans and training in place than possibly any other part of a company if it is to succeed.
After all, you're basically saying you can do it better and cheaper than the company actually serving the particular market.
Learn the foundations of doing it though, and you can learn to apply it to numerous service areas that won't take near the time to get it off the ground the first time around.
Other Jack Welch Resources:
Jack Welch's advice to MIT Sloan students
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Put me in circulation plz..
Posted by: taib hashim | January 4, 2008 7:48 AM | Permalink to Comment