Choosing new strategic identities is essential
Senior executives at telecommunications companies around the world have heard for several years that their industry is approaching a tipping point. When it hits, they are told, their business might not survive the disruption. And yet they continue to do business. They might well think the warning from telecom industry specialists (including us) is overblown. Telecom customers are often locked into a long-term plan; many are loyal to their carrier. Doesn’t this suggest that the industry will continue as it is for some time?
To be sure, business upheaval often happens more slowly than people expect, and no one can predict exactly when the moment of truth will strike for any given company. But to judge from several trends that have roiled the telecom sector during the past few years, the time for preparation is over. You must now pick the businesses where you have a competitive edge and focus your strategy on them. Even if you think your current business model has several years of life left, you can’t be sure — and strategic focus will help you, no matter how far away the time of change.