The most basic rule of business is to “Do It Yourself”.
Consider this company, “Company Gummy“, at the height of its business, they faced a critical point where expanding to a new product segment is paramount to its growth. (Consider the likes of Computer companies evolving into producing Laptops from the Desktop era, if they continue to only produce Desktops, they might not survive)
However, in order to transform their business, they have to radically change their production methods, reduce their cost and their time to market for the products.
After long periods of testing and trials, many of their suppliers dropped out as they could not meet their new quality requirements nor their nimble orders and ordering frequency. Starting up this new segment seemed impossible.
Company Gummy were faced with only two options:
1. Continue producing their core product and compromise with quality on the new segment
2. If no one can supply me what I needed, I will do it
No surprise, they refused to give up and instead of compromising with the market norms, they dedicated time and resources to start their own upstream businesses.
Now, Company Gummy do their own parts and even produce some of their own raw materials. To their surprise, what may seem to be a move for survival now turns out to be a critical turning point of their well vertically integrated business. With more than 90% of their parts and raw materials self-produced, they now have complete control over quality, production time and they now lead the standard in its industry.
As we look at Company Gummy, we see its struggles, determination and competence in its highly competitive industry. On how it took matters into their own hands and built out a wider, longer path for the company.
How many listed companies are still willing to “fight” and be a real Entrepreneur once more after being so comfortable?
What kind of companies would you like to own?
Thank you for reading
~ the best direction to fly is against the headwinds