Businesses and companies implement strategic changes in their operations, processes, and systems in order to gain a competitive edge. They do so by differentiating themselves from the competitors and achieving cost efficiency. Today, we’ll discuss the top 10 examples of strategic change management.
Top 10 Examples of Strategic Change Management
Let’s discuss the top 10 examples of strategic change management and they’re as follows;
Airbnb – Transforming to Long-Term Stays
The worldwide shutdown and lockdown during the 2020 pandemic crisis greatly impact the online rental lodging company Airbnb along with many other hotels and restaurants. In order to deal with the crisis, the online rental lodging company Airbnb launched strategic changes by focusing on long-term stays and local experiences. It allowed the company to adjust to the changing behaviors and attitudes of customers during the pandemic crisis.
Brick & Mortar Stores – Developing E-commerce Store
Many conventional brick-and-mortar physical stores like Target and Walmart have implemented significant strategic changes to amplify their online presence and target digital customers. They allocated a significant amount of capital resources for the development of an e-commerce platform to compete against online stores like eBay and Amazon. It allowed them to gain a foothold and enter the digital market with their own e-commerce store.
Microsoft – Transforming into a Cloud Computing Platform
Microsoft has earned global recognition and popularity for its Office Suit software and Windows Operating systems. The tech company successfully launched strategic changes over the years. For instance, the tech giant brand transformed from the sale of packaged software to subscription software and cloud-service providing firms with services like Azure and Office 365.
Kodak – Failed to Adopt Digital Technology on Time
Kodak used to be the market leader in the photographic industry, but the company didn’t adopt digital technology on time. Traditional photographic films were the main source of income for the company, and the company didn’t change. Gradually, digital photographic cameras dominated the customer market. By that time, Kodak launched strategic changes and adopted digital technology. It was too late, the other companies had earned a significant customer market share, and Kodak finally filed for bankruptcy.
Netflix – DVD Rental to Online Video Streaming
Netflix used to run the DVD rental business and send it through mail-order to the customers. The company observed a significant growth potential in digital video streaming technology. However, the platform launched various strategic changes towards the development of digital streaming platforms. Later, the company started producing digital video content for the users; the platform started competing with the movie studios and television networks with its online content.
IBM – Transforming to Cloud Computing Firm
IBM used to be a hardware manufacturing company by developed personal computers, mainframe hardware, and other physical device. The hardware company faced tough competition due to the technological changes. However, it led the company to implement various strategic changes. Resultantly, IBM became the cloud-computing and IT service providing firm.
HP – New Branding Strategy
HP suffered a lot of losses and decreased a significant portion of customer market share with the introduction of cheap Japanese devices and products. The company developed a technology of inkjet printers and launched a new market campaign; it helped the company kick out the dot matrix printers from the market. However, the changed product marketing strategy helped the company to become the market leader in the personal computers and printer market.
Halliburton – Changed Headquarter Location
The oil reserve finished in the state of Taxes, which made the company move its headquarters from the US to Dubai. It is because the Middle East contributes roundabout 60% of the world’s oil and gas production. It was a great strategic change and move for Halliburton and stay competitive in the oil market. (Examples of strategic change Management)
Intel – Transformed Brand Image of Microprocessor
Intel launched a new marketing and branding campaign of “Intel Inside” to differentiate itself from other microprocessor manufacturing companies. Many hardware companies didn’t consider Intel a top microprocessing company. However, the strategy change helped the company to establish a top quality microprocessor brand image, completely differentiated from other brands. Nowadays, customers want the Intel processor while selecting any hardware device.
Nissan – Operational Changes
Renault Motors bought the Japanese failing motor company Nissan, and Renault chose Carlos Ghosn as the CEO of Nissan. His job was to decrease the production and manufacturing overcapacity by removing the seniority system of Nissan and replacing it with a performance based management system. He focused on decreasing the cost and sales of assets and finishing the long relationship with suppliers. As a result, Nissan achieved significant profitability within a year and said no to the years of losses.
Conclusion: Top 10 Examples of Strategic Change Management
After an in-depth study of the top 10 examples of strategic change management; we have realized that strategic changes play a key role in the growth of the company. If you are learning about real-life examples of strategic changes; then you should keep in mind the abovementioned top 10 examples of strategic change management.
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