The Point Of (And Problem With) Accelerants
Image by Free-Photos from Pixabay
There's a trend line that we all live through in any endeavor we’re a part of. That trend line can be positive or negative but it’s a constant - there’s no question that there is no such thing as a ‘permanent’ status quo, that things will inevitably progress in some direction to a redefined (temporary) equilibrium.
Most of the time that trend line is drawn out over some material period of time. If we are on the ascent, that ascent can continue for years, driven by a mix of factors both internally driven and externally influenced. Similarly, if we are on the descent, that, as well, can continue for years. In fact, the bigger the entity (from a commercial standpoint) the longer it can continue, and even when we see the signs for the inevitable decline staring us in the face.
The growth of the internet over the last 25 years has materially impacted the pace of that change. As we’ve all seen, traditional business models have been upended entirely (think video rentals or the music business), while others have been given a material jolt (think hotels or travel).
Clearly, the internet has been a disruptor in some and an accelerant in others. It’s exposed underlying issues and/or presented a new state of play that many existing players have struggled to adapt to.
And now, in the current environment, we’re seeing an accelerant. Issues of strategy, fundamentals, consumer preferences and management strength and agility have been brought to the fore in a way we’ve never quite grappled with before. If you weren’t a well run company before, or if you were swimming against the tide relative to your customers and your competition, you’re facing a completely different battle. It isn’t so much a battle to stem the tide as it is a battle for absolute survival, where some companies aren’t going to make it out the other side (whenever that will be).
Nowhere has this been as prominent as in the retail business, where many long established players are struggling through the paradigm shift and still others have not survived. The term “shakeout in retail” has been playing out for a long long time, but we’re seeing it happen in real, accelerated time now. Zero revenues (or close to it) have a way of doing that.
And it’s more than the big prominent names that we’ve been reading about of late especially. It’s also the small to medium sized retailers who don’t make it through. We’ll only understand the tangible impact of this over time.
Yes, there’s a Darwinian element to all of this, but I can’t help but think that the minor luxury of time that these organizations had available to them was taken away by forces well beyond their control. This is the way of the world, I understand, but it doesn’t make it any easier.
If we’re to take away anything, it is, I suppose, to get ahead of our situations faster than we’re comfortable with. To be more aggressive in the implementation of that strategy. To commit fully and wholeheartedly to any change initiative. To fortify our finances and be more thoughtful with our uses (and abuses) of cash.
In the best of times, there’s no guarantee that our efforts will suffice. But to not try, and to not move quickly enough, exposes us in a whole different way.
