How do fads work. Business strategy.?
5 years ago it was friendster. then it was bebo. now its and facebook/twitter.
It work with everything. mainly childrens toys. Can companys predict them.
Predicting may be found to be quite difficult. The easier approach would be to hold down a culture that allows for the swift reaction and implementation of strategy in the face of a new fad. Typically fads are short-run product life cycles. Consider that this cycle includes periods of Introduction, Growth, Maturity, Decline, and eventually Death. Larger corporations go through these stages both at a business unit level for each product, showing different lengths in each stage, and also as a company as a whole. Company’s tend to fluctuate between growth and maturity if they know what they are doing. So to answer your question, a company must be willing to adapt to the changing environment when these fads produce themselves to be of value. If a company can recognize and capture the fad in the earlier enough in the growth stage, or late in the introduction stage, they would be poised to take advantage of the fad. Bear in mind here it is also best to ensure that the company is not adversely affecting its brand image in taking part in the fad and it is imperative to develop an exist strategy for the decline stage.
December 23rd, 2009 at 9:14 am
Predicting may be found to be quite difficult. The easier approach would be to hold down a culture that allows for the swift reaction and implementation of strategy in the face of a new fad. Typically fads are short-run product life cycles. Consider that this cycle includes periods of Introduction, Growth, Maturity, Decline, and eventually Death. Larger corporations go through these stages both at a business unit level for each product, showing different lengths in each stage, and also as a company as a whole. Company’s tend to fluctuate between growth and maturity if they know what they are doing. So to answer your question, a company must be willing to adapt to the changing environment when these fads produce themselves to be of value. If a company can recognize and capture the fad in the earlier enough in the growth stage, or late in the introduction stage, they would be poised to take advantage of the fad. Bear in mind here it is also best to ensure that the company is not adversely affecting its brand image in taking part in the fad and it is imperative to develop an exist strategy for the decline stage.
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