When Industries Die
“Inside of chaos there is opportunities”
When things are being destroyed, new things are being built. Many of the industries that I follow, industries that have shaped my lifestyle, are in a state of ruin; of chaos; of bankruptcy. Many inside the industry are sounding off all alarms within arms reach, and instead of trying to build something new, they are appealing to folks nostalgia.
I love cinema, comic books, skateboarding, fast food, and even dollar stores! But that love doesn’t mean that the business model is sustainable in the manner it exist currently. It is poor business to try and have your communities carry the industry on their backs.
The Opportunity
We are currently in a moment of change within commerce, and life really. The way it existed no longer works, and we as a community are re-evaluating what we want. The pessimistic people feel hopeless. They feel attacked and that their existence is coming to an end. They miss the good old days when things were like, insert whatever nostalgic moment. That’s were all the dread is coming from. Yes, many companies that were well established are now closing their brick and motors, and some even going belly up. But why the doom and gloom?
Did you know that widespread bankruptcy and restructuring is a tell. It’s an indicator that the industry in question has some deep seated problems. Those problems need to be resolved before the industry can realign with the market wants and needs. Hence, this chaos is born and with it we begin to see companies reinventing what these industries are and will be.
I understand that the cause to some of these problems are more varied than just changing times. Oversaturation is definitely one of the biggest factors. The over supply of products and services has created price wars, smaller market shares, and both result in declining profits for large companies with large overheads. And there lies a competitive advantage; small companies don’t have a large overheads, we are built lean. Small companies don’t have large market shares to loose, we have large market shares to gain. Small companies can move faster and take chances, large companies are too invested in old models to pull out as fast.
So in moments like this, I adopt and advocate that people play an active role in helping to build the new. You do not have to be a spectator, you can participate, and it is no wonder that most Fortune 500 companies have been built during some sort of economic turmoil. That’s because these moments make change possible.
Market Leader Versus Market Lead
This moment is the best for anyone interested in a chaotic industry. Your actions can make you a leader in the industry, and your inaction can make you a cog as you become market lead.
If you are unfamiliar with this concept of market leader versus market lead, in short it is the idea that some people are innovating in a industry and others follow that innovation from behind. The leader is establishing the new model, and the rest are trying to catch up.
Market leaders hold a dominant market position, they’ll maintain a buffer so they can weather a finical storm, they’ll hold consolidation opportunities as they buy out or crush opposing companies, and they will be first for collaborations which leads to more innovation.
Market lead has none of those things.
Conclusion
I accept the changing grounds and look forward to being an advocate for the industries I care about. I am encouraged to work harder to build Feral Publication.
