The
Coming Millennium: 12 Business Interviews (Part 2)
By
Jack D. Deal
This is
the second of a series of interviews with business owners/management
on the future of their industry.
1. Restaurant
Chain. We will expand in the next year by carefully studying
the demographics for new franchise areas. We are continuing
to promote from within -- this creates employee loyalty. We
are constantly recruiting from our rank and file. We will
continue to do more of our ordering and internal communications
on-line. We are developing a new marketing campaign with some
self-deprecating humor. Our only concern is if the economy
goes sour.
2. Tile
and Marble Distributor. We are steadily growing largely due
to the backlash against synthetics and plastics. Imports are
dominating the market and will continue to do so. Italians
are making less product but selling machinery all over the
world... if a country has clay they can make tile.
3. Precision
CNC Machine Shop. We are dying. China can make the same products
that sell for 20% of what we have to charge. Their turnaround
time is 2 weeks to deliver to Silicon Valley. Our only markets
may be high quality/fast turnaround markets, such as health
products. To the manufacturers, price has become more important
than quality.
4. Locksmith.
Autos have been changing faster than any other industry. It
has been predicted that by the year 2004 no manufacturer will
continue to make mechanical ignitions. The home industry will
be much slower in going this route since it is harder to steal
a house. We are also making a lot of keys by computer code.
We are having to go to class to learn these new technologies.
5. Offset
Printer. We still do a lot of manuals and newsletters and
expect to continue with that For longer runs copy centers
-- which are everywhere now -- are not cost effective. All
the experts have been telling me I'll be gone in a few years.
We just keep finding niches and going after those markets.
Many of the young executives and managers are surprised at
the quality offset can deliver.
6. Crafts
Distributor. Certain products, like custom art glass, are
doing well on the Internet. Many of our customers want to
touch and see the works and that means we have to have a store.
One just cannot touch something on the Internet. Also many
of our customers want to have a face-to-face contact with
us as well.... that is just not possible on-line.
7. Printing
and Graphics Company. For the last ten years the industry
has been flat. Flat sales have translated into discounted
work so prices on printing have been going down, at least
in our market. The digital press will bring about major changes
because it eliminates the camera. We are frankly confused
and uncertain as to our strategy. We need to invest to stay
current and competitive but it is hard to justify the expense
when the return is so uncertain.
8. Veterinary
Hospital. Animals are living longer so we're seeing more pet
geriatrics like arthritis treatment. Owners don't want to
see their pets suffer so we are doing more pain control. We
are also seeing more people bonding very strongly with their
pets.... you can make your own conclusions about that. Some
pets become family.
9. Rock
and Landscape Supply Company. The prospect of drought helps
the rock business. The sculptured natural look of rock is
making it more desirable for residences. Some of the landscape
designers can get a really nice natural look from rock that
makes a house 'fit' in better to its surroundings.
10. Fresh
Foods Manufacturer. We are looking at getting out of catering
altogether and maybe some of the retail as well. Our strategy
is to keep the quality high and market to businesses and corporations.
11. Moving
and Storage Company. People will always move. One of the changes
we have seen is that we have to 'see' the job first. A type
of consolidation is going on in our industry and that will
continue. The smaller companies will be less likely to compete.
They already cannot compete in the storage market. It's either
buy up or sell -- out: those that stay the same will not make
it. The long haul driver will still be hard to find.....it's
crazy out there on the roads. Improved truck ergonomics have
reduced some of the physical stress. Because of GPS and increased
communication, we are able make these drivers more accountable.
12. Emergency
Medical Response Center. People are living longer so we anticipate
a steady, growing market. Our clients are in that 'funny'
zone between independence and a skilled care facility, so
we don't have the unlimited market some people think we have.
What we primarily sell is peace of mind for relatives that
cannot be present to care for their loved one. With us, they
worry less.
Jack
D. Deal is the owner of the Deal Consulting Group - a knowledge-based
business consortium. 831-457-8806 / jackdeal@ix.netcom.com.
Related articles may be found at http://www.dealconsulting.com (this domain is not active and may be owned by someone else in the future)
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