by J. W. Dicks, Esq. & Nick Nanton, Esq.
Akira Mori, president and chief executive officer of Mori Trust Company, Limited, said, “Past success stories are generally not applicable to new situations. We must continually reinvent ourselves, responding to changing times with innovative new business models.”
Nothing could ring truer in this New Economy where seemingly every attempt to draw on past success strategies is met with less than stellar performances. The reason for that result is that economic change, while appearing to be the same, is always based on a different set of circumstances than ever before; the flaw is to assume “a recession is a recession just like the last one” and that the results are the same each time. They are not.
Our current economic crisis is the modern-day economic equivalent of the “perfect storm” in which multiple disparate factors collide to create something different, something unexpected, something that doesn’t react very well to the old traditional forms of economic stimulus.
The reason for the slow recovery of the economy is because we are not just seeing an economic crisis, we are seeing a fundamental shift in the nature of how business works; and the recovery, when it happens, will not come from the same old stimulus methods but instead will sprout from a more fundamental change of the very nature of business growth. For the economy to return to a healthy status and for business to resume the mode of successful commerce, the consumer must be listened to and catered to like never before. Today’s consumers are no longer bound by the offerings of their neighborhood store. What the consumer wants may be thousands of miles away but must be deliverable tomorrow on the buyer’s doorstep without the frustration or cost of time and travel.
Jack Welch, chairman and CEO of General Electric between 1981-2001, faced facts when he said, “The Internet is the Viagra of big business.” Just like that, the guy who increased GE’s market value from $14 billion to more than $410 billion