Dangers of following business frameworks
Ultimate explanation on why your business is failing
We may have all read about different business frameworks in books and on websites with many writers, business experts and analysts coming up with various frameworks that show aspiring entrepreneurs on how to operate a business successfully.
I beg to differ.
The business framework is a general structure of how an organisation operates. The type of framework used depends on what the end goal of the company is. Most companies would adopt a framework that allows them to profit the most. (i mean which company doesn’t want to profit and make big bucks?)
The 10 most common business frameworks that are well-known are:
- Porter’s 5 Forces
- McKinsey 7s
- MECE
- The 3C’s
- BCG Matrix
- SWOT Matrix
- Ansoff Matrix
- PEST Analysis
- Value Chain Analysis
- Scenario planning
Although these frameworks are created by reputable professors, consultants, theorists, managers and mathematicians, they are NOT entrepreneurs, they are NOT the boss running the empire. They are the only people who studied and analysed how business works theoretically. In practice, it may not work.
These frameworks that you have been following are other people’s ideas and theories.
Are they wrong? No.
But does it work on everyone? Definitely not.
After all, You are the one running your own company.
Following and learning from other’s frameworks is not wrong. You will save time thinking about where to start and get more organised with telling your employers on what to do. It will be easier for you to set direct goals and be on task.
However, I would like to tell you that by simply following these frameworks, it will not work.
So what do you need to do to succeed?
A company needs to find its own value. Why should customers return? How to make money? These are questions you should ask yourself as the boss.
Customers will only come back for more if your company has more to offer. For example, Kylie Jenner, the world’s youngest “self-made” billionaire, runs a lipstick business. She is considered successful in running her empire within a span of 3 years. Her business has its own value of letting girls and women feel confident through wearing her makeup. Not only this, but she also markets her product A LOT through social media like Instagram, Twitter, Youtube and “The Kardashian’s” TV programme. As a social media influencer and businesswoman, she makes use of social media to market her products targeting mostly teenagers and millennials.
Another successful example is Netflix — a media services provider and production company. It makes money through the subscription method. By subscribing, users will have access to all contents and watch and download movies, tv shows and documentaries on their own device. Customers will have to pay $12.99/month for a Standard streaming plan allowing them to watch on two devices and $15.99/month for a Premium streaming plan for four devices. Netflix successfully found a way to make customers come back for more by offering them convenience. Their target audience is people who are too busy with school or work and do not have the time to go to the cinema to watch a movie. Also, the convenience of watching a downloaded show on the way to school/work/gym makes people fall in love with this company. Many simply don’t mind paying for the convenience of watching all kinds of content available on Netflix. This is Netflix ability to turn into a successful business by being valuable to their new and returning customers.
Both of these examples proved that not following the 10 frameworks above will also lead you to succeed in operating a business. However, the most important point that all newbie entrepreneurs should take note of is that your business and company should have a value. The only way to capture this value is to think about what your company can offer to customers that others cannot.
In the end, I would like to say that although I do not agree with the business frameworks followed by experts that have studied business for years, it is still a good starting point for the clueless who want to be an entrepreneur.
Thank you for reading my article -Karis Fang
