Stimuli I

Stimuli I

Presented by Turbocharged Snacks

Foreword

Welcome to the first edition of my new monthly publication from Turbocharged Snacks, Stimuli.

Stimuli, by definition, are events which insight a reaction.

The intended reaction? Deep Thought and Growth. Growth for you personally and professionally and/or growth for your business and career. At the very least, I’d like to get you thinking about the topics we present through a critical lens in your own life, career, and business venture. We’d be remiss to not extend a warm thank you to those who have supported us in our journey towards today and all of our new readers as well.

Enjoy the read and share your thoughts with me!

— Matt

1. Introduction

Evolution as a Basis for Business Strategy

Humanity has a tendency, especially in the ‘first world’, to view itself as completely separated from nature. We view ourselves as if we are not impacted by innate desires, instincts, or foundational principles for the order of things. While evolution is a theory, it is a generally accepted one among the scientific community.

How does evolution serve the basis for business strategy?

As you read the below, you will find the most basic-level principles that define all markets share commonality with the theory of evolution, alongside an argument for how people and businesses can manipulate their realities to gain success.

2. Natural Selection

Evolution of a Species and a Market at a Natural Rate

Identified by Charles Darwin, the theory of evolution was simply the idea that members of a species all compete for similar resources. When those resources become scarce i.e., fruit is only at the top of trees, only adaptable members will be able to continue to thrive.

When we apply this same line of thinking to business, we arrive at an awfully similar conclusion. Businesses, in a given industry, all compete for the same resources [customers]. Those resources are finite. When they do grow, the respective market share of each competitor assume the relative portion of the new resources.

Overtime, there are gradual shifts. One competitor may release a new offering superior to another, but then the scenarios reverse. This process slowly pushes innovation forwards, although at a rate similar to that of evolution. These changes are measured in decades, sometimes centuries.

3. Key Inflection Points

Natural Increases to the Rate of Business Evolution

There are, however, scenarios in which evolution of an industry, or even an entire market, are rapidly catapulted forward. The Industrial Revolution was one of the first major events driving an entire market shift. Then, the internet. Now, Artificial Intelligence.

These major shifts spur periods of rapid innovation and competition for resources. Old businesses fail, new one’s are created, and the way things were once done is no more.

Something to note is that these major shifts appear to occur more frequently. The Industrial Revolution in the 20th century, the internet in the late ‘90s/early ‘00s, and AI in the 2020’s. Only two, maybe three, decades, since the last major shift.

The main problem for most businesses? They are completely reactionary when it comes to these changes, just like most people when they encounter a unperceived problem spawning.

4. Business Strategy

Strategic Planning and its Business Purpose

Business strategy is a complex topic comprised of many sub-segments.

Most businesses are woefully unprepared for shifts and those same businesses are surely not the one’s spurring any of them. Strategy is half art and half science. It’s a game of chess, except losing could mean that you end up with no money and no job at the end of the game. That’s exactly what we’re trying to avoid.

The sole purpose of your strategy is to compete with the other members of your industry. That could mean that you are more customer-centric, environmentally conscious, or have a better brand. These elements of your business are what drive your level of market share, in addition to low-cost production and other financial health aspects of a business.

If you want to compete for resources [customers], you need to bring something different to the table. But, it needs to be well-thought out and designed to achieve the desired outcome.

5. Out Competing Competitors

Competitive Advantage and Market Dominance

Strategy comes to a head at competitive advantages. Surprisingly, most businesses do not possess a competitive advantage and that’s why they own small pieces of the market.

By its nature, competitive advantage is difficult to establish. The purpose is for it to be difficult for other competitors to replicate. Competitive advantages can be tangible like cost leadership (not the boat you want to be in unless you have lots of scale) or intangible like reputation and trust.

The upfront effort and cost can be tremendous, but the long-term growth and opportunity are limitless.

Here’s Three Examples:

• Apple [AAPL] - Build competitive advantage through extensive branding from end-to-end. You can probably name all of their products.

• Lockheed Martin [LMT] - Facilitated deep government relationships forming the foundation for trust and an excellent reputation for delivery.

• Tesla [TSLA] - Brought the first mass production electric vehicle to market. Elon Musk has used his public personal brand to help capture attention, which is indirectly diverted to the brand.

6. Reactive < Proactive

Natural or Strategic

There are two paths, either allowing the natural course of events to unfold or taking a form of control through strategic planning. The choice you pick will determine your future.

So, how does evolution serve the basis for business strategy?

Businesses evolve over time just as every species does. When we wait for the natural progression of events to unfold, we are left scrambling for something to hold on to. Strategic planning and building a competitive advantage provides a cushion to the upheaval of markets and ensures the long-term success of us and our business.

A Final Note

NOTES FROM OUR FOUNDER

“Business is a game. The key is knowing how to play better than others. When to fold and when to put all your chips on the table.”

Safe Travels,
Matt Cousins
Founder of TCS

Unlocking the Potential of ‘Main Street America’