Academy for Market Orientation India (R 4034005)

Blended Coffee & Blended Corporate

It was 5 pm and I was craving for a true blended coffee.I walked to the cafeteria and found my colleague there .I thought why not we blend our thoughts along with our blended coffee and the outcome was the term  ” Blended Corporate”which just popped up in my mind yesterday night.What does this term means and here it goes …. Most of the management philosophies talk about ” Core Competency” and ” Focus” as one of the  key to corporate success.For a moment I was thinking deeper on this and found can there be a potential downside on this argument.Interestingly I found in the process of attaining higher profitability  by moving towards core competency and focus ,I was wondering if organisations are too self-oriented  .By this argument I am not saying “core competency or focus” is an ineffective strategy but I am looking at an option of balancing few aspects as well .Every organisation/company is part of a larger industry to which it belongs to in a particular country/ geography.Industry has certain core pain points which are to be addressed  for overall industry welfare of the specific country/geography. In the process of higher profitability , its possible sometimes companies may tend to over focus on higher profitable zones /pockets /layers/strata of the industry and may miss out from balancing the core pain areas of the industry in a particular nation .In longer run if the pain areas are not addressed it becomes bigger and bigger for the industry / nation and  shall attack the higher profitable zones /pockets /layers/strata of the industry as well.A simple example could be if a car manufacturer in India choose to sell cars only to upper middle class (15 lakhs and above – Car price) though it might be its core -strategy it could be a short term winning formula in a country like India.The industry pain is the aspiration of the burgeoning  lower middle class and rural pockets to afford a car though the value of the ticket size there (car price can be less than 2 lakhs). We might have seen some big MNCs in India who realized this and after so many years entered into hatchback segment.Another example could be supplier up gradation in manufacturing industry . If we are dependent on tier 1 supplier  fully and if the company doesn’t co-create and co-partner in R&D of tier 2 suppliers in  long run we shall have shortage of supply and depletion or even over utilization of natural resources .In simple terms every organisation apart from focusing on profitability should also look at the core industry pain points and work on addressing that too by giving back to the Industry from where it takes its benefit/margins from.This is not related to CSR and I would like to term this as Corporate Industry responsibility (CIR) . Incidentally I was reading about “disruptive innovators” how they enter in the low value segment and later compete with main stream players .May be this low value segment what main streamers tend to neglect could be a potential industry pain point .If a company /corporate can find a balance between “Core Competency/Focus” and ” Core Industry pain ” it could be a ” Blended Corporate”according to me.

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