beware of the hedgehog strategy

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The buildup of business on a core value like hedgehogs might be a recipe for disaster. Find out why

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Slide 1

Beware of the Hedgehog Strategy

Ali AnaniI dedicate this presentation to a dear and idea-triggering friendTo

Guarav MishraHedgehog teaches us to focusHave one core value and use it effectively

The fox has never caught a hedgehog

hedgehogs Approach

Adopting the hedgehog strategy might send business in chaos

The thorns serve the system and the system serves the thorn. They work together and serve each other. The ball shape reduces the outside area and the thorns target their enemy better. It is the whole in the thorns and thorns in the whole.ButThat is NOT enough

Hedgehogs know how to curl up. They still need to know when to open up

Residual fear keep hedgehogs in the stressing ball formSo are organizationsFear closes organizations up from emerging opportunities if it lasts long.Fear also stresses the organization

The bullet proofKodak did not fail because it missed the digital age. It actually invented the first digital camera in 1975. However, instead of marketing the new technology, the company held back for fear of hurting its lucrative film business, even after digital products were reshaping the market.http://www.forbes.com/sites/avidan/2012/01/23/kodak-failed-by-asking-the-wrong-marketing-question/

Kodak bosses buried their heads in the sand of hibernation. The crystal quartz turned into sinking sand

It is not enough to roll up in past successIt is more important to avoid the irrelevance of the core business

Business tend to wrap up in the ball of past successesThe Other Side of InnovationPhysical TrapPsychological TrapStrategic Trap

Avoid the trap of past successes

http://tommakau.com/2011/03/30/why-great-companies-fail/

Successful HibernationHedgehogs hibernate

Businesses do

Stress of defending strains the body and it shows symptoms of hibernation

Stress of defending strains companiesBusiness Is like A hedgehog: Hibernation is not the solutionHaving one core strategy is unforgivable unless the company has high adaptability; else hibernate and die like a hedgehog

When do hedgehogs hibernate?The timing of hibernation does depend on many things including the weather. When it gets very cold, they will hibernate (if they are fit and fat enough) because their natural food disappears in the cold weather.Likewise; companies hibernate in the chilly winter of demand retractionNo hibernationWinter hibernationFull hibernation

Do not scare the customers. This way they might curl up and point their gulls towards you

Fearful customers will see you as a threat

Having a core business is NOT enough for growth or survivalLearning from the past to shape the future is the solution