Why do some businesses become so successful and some not? Is it mainly luck?
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You might have a great product but that does not determine your success, you need a good business canvas. You may be a popular company with a lot of money, but the product may be rubbish, so it’s not all about the money you have to pump into it either. Businesses need to understand what their value proposition is, what value are they offering, what problem does their product/service solve? Then you go from there, who is the customer? What are the costs incurred? How will you finance yourself etc. It’s all in the planning.
Innovation is also key. Blockbuster refused to change their business model, they had every opportunity to change with technology but they didn’t.
Sometimes yeah someone may get lucky, but other times it’s all in the planning and executing. You need to have your primary activities such as your inbound and outbound logistics, everything from purchasing the material, creating a product, getting it in stores etc, then you have your supporting activities which is things like tech control, HR, anything within a businesses infrastructure, ALL these need to work together. Communication is also key.
The best term I have hear for businesses is creative destruction. Basically all businesses have a life cycle, and if you fail to innovate you fail, but something new comes along on the market to replace it. Blockbuster refused to innovate and change, and then came Netflix
Depends on the sector. I think it would be easier to answer your question if you use specific examples you have in your mind. But no generally it isn’t luck though in some cases that can be a factor. Generally it’s a function of supply and demand. Some companies create “products” that naturally have a demand. Others manufacture a demand with better marketing. Some can scale supply in a profitable way and others can’t. That’s about as generally as I can answer
Because they find a demand and supply better quality and/or lower price than the competition. Or they use government regulation to prevent fair competition.
This is actually a complicated question.
To oversimplify it’s not luck at all.
It’s a series of good ideas that are planned well and implemented well.
Short, medium and long term strategies to grow the business as well as a desire to reinvest into the business itself.
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