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Retired Businessman and Educator

Elements of a Successful Mega-Trend Company
 
Will APWR A Successful Megatrend Company?
 
Mega-Trend Companies, Valued-Added Vertical Marketing Strategies and Good Business Practices Equal Huge Success!
 
A. Mega-Trend Company Basic Concepts:
Mega-Trends are basic needs that the world economy and civilization need to survive and/or maintain growth. Examples like a shortage of drinkable water, shrinking world resources (fossil fuels), the need for cheaper and faster communications, restructuring the heath system, etc.

B. The long term successful Mega-Trend companies view themselves as being in the alternative energy field not only the wind business. Example--a slide rule company which did not think it was in the computing business or a train business that did not think it was in the transportation business went out of business because they did not have the vision to grow and change with the times.

C. Mega-Trend Companies that are the most successful use value-added vertical marketing principals.
 
D. Example of the Vertical Marketing Concept:
When a small businessperson tries competing with big business it is a huge climb. This new venture must have a distinct edge with its products and/or service to a smaller underserved segment of the market.

1.      Example of a Successful Vertical Marketing Venture
In a city of 50,000 there is a Super Wal-Mart, Target, many fast-food chains, etc. A women has a passion for leather coats. She starts a new leather coat store. This new businesses woman begins her business venture. She rents a small location and stocks it with the best and largest supply of leather coats in town. People hear about her business and in time she gets over 40% of the leather coat market in the city. She wants to expand her business and increase the average customer’s spending to increase her profits without taking too big of a risk.
 
2.      The Concept: Value-Added Vertical Marketing
The business woman decides to complement her core business of leather coats. She adds leather gloves, a variety of leather goods, and other related products. To her surprise, her average sales increase as her customers are now buying the other items as well. She attracts more customers and her average customer instead of buying an average of $100/order is now spending $160/order.
 
Her business is a successful example of value-added vertical marketing.
E. Other Key Criteria:  
 
Successful businesses:
1.      Have a unique market niche in which they have a distinct advantage.
2.      Follow well-designed business practices.
3.      Create an organizational structure that is designed to work toward the common overall good of the company.
4.      Have a well-designed, five-year business plan including goals and timelines.
5.      Have a solid research plan with mutual beneficial partnerships to keep current as well as maintain a leadership role in new technology.
6.      Coordinate their divisions to increase the synergy of the company.
7.      Develop a win-win partnership philosophy which adds value to all partners.
8.      Have a built in process for the training, recruitment, and retention of staff.
9.      Use a quality control system like “total quality management principals” as part of their basic operational and belief systems.
10.Do not attempt to move too fast beyond their core market niche unless they can put in adequate resources and/or create new partnerships that allow them to be competitive with current leadership companies in those markets.
11. Design and implement a well-defined and executed marketing plan with a value-added component as part of their plan.
12. Do not overextend themselves with more projects then they can manage.
13. Demonstrate a record of increasing sales, earnings, and shareholder value.
14. Have adequate resources in staff and funds to execute the five-year plan based on a priority system.
15. Take advantage of unique political and government grants or priorities to be used as an opportunity to expand their business at a lower cost.
 

NOTE: The above criteria should be reviewed prior to purchasing holdings in APWR or any company in a Mega-Trend business.
 

F. Mega-Trend links:
 
Written by Bob Skeway, retired educator and businessman.
Email: businesstuneup@yahoo.com