As individuals and businesses alike struggle to deal with a wayward economy, one of the first things we can do is look outward for tools and techniques to help weather the worst of the storm. Fast Company founder Bill Taylor recently examined three companies that seem impervious to market fluctuations and the economic turmoil faced by their respective competitors, and the lessons we can draw from their successes.
Honda, Netflix, and Southwest Airlines are the companies that make up last quarter's victorious triumvirate. While Detroit automakers have been suffering from staggering losses here at home, Honda has reported $1.7 billion in profits. Netflix has reached a subscriber base of 8.4 million households. And as airlines continue to flounder, Southwest Airlines showed a 15% increase over last year, hitting just over 17 years of consecutively profitable quarters.
What are the common threads between these companies that keep them flying high while others scrape by or shutter their doors?
1. Connect with Your Customers
Forging a relationship that goes deeper than the nuts and bolts of the product or service your company provides is a crucial component of success, especially when financial outlooks across the board are bleak. Relationships rooted in identity and emotion help a company tip from useful to essential.
2. Go Big or Go Home:
It used to be really easy for companies to aim for the middle. By being decent at a variety of things, they could hit the widest part of a market's bell curve. While that was a sound technique in the past, it is no longer the case. It is now integral to corporate success to be the best at something. A company must, with no exceptions, determine what they are the best at and execute on it. As Taylor states, "Southwest has always managed to combine low fares with great service--anything else is a distraction." By being the most affordable, having the greatest customer service, or providing the most exclusive product, a company can distinguish itself in the mind of the customer.
3. Be Yourself, Even When Things are Changing:
This rule might be "easier said than done" for many companies, but it holds true. To succeed, a company must stand by what they believe in. While it is important to test and tweak strategies, the overarching approach must be a steadfast attachment to your plan, and the value proposition you've developed in the aforementioned stage of defining your businesses' strengths. While many large companies like Ford appear to be in constant "react" mode, rushing to adapt in light of market conditions, companies like Honda reap the rewards of embracing their long term strategies. Finding consistency in your business will give success an opportunity to find you.