alpha’s Litmus Test for redefining the core
The business environment of today requires management teams to adapt quickly the endless change. alpha presents this litmus test in the form of the following 7 questions. They will assist you in determining when you should have a hard look at the core operation and focus of your business or organization.
Ø Are top-tier venture capitalists funding businesses with the avowed intent of attacking a segment of your core business?
Ø Are you finding the revenue growth for the last year less than what you feel it should have been?
Ø Are sophisticated recruits in interview discussions asking tougher and tougher questions about your fundamental business model?
Ø Is a new competitor beginning to gain surprisingly rapid market share in a marginal segment of your business that you once controlled?
Ø Are steps in the value chain that you once considered core now being unbundled and controlled by specialists?
Ø Are there fast-growing adjacent customer segments that you once were able to serve but that you now could not compete for without adding to your capability?
Ø Are there potential legal or regulatory changes that could eviscerate your competitive position of your core business or your ability to compete for the next logical extension of your business strategy and growth plan?
If a management team can answer yes to two or more of the above questions, the odds are that a realignment of the core business is in order.
