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Archive for March, 2012

Read the news about Ananda Krishnan recently? Looks like he is disposing his assets and to those who are not in the same industry as he is, no one understand why he is doing so.

It’s called circle of competence. When one is in the industry and goes through the pain and gain of it, they will see what others do not.

Forget about those business terms; competitiveness, market penetration, barriers to entry, etc.

Those who are in a particular industry will see what others do not and take action before others.

The mistake us entrepreneurs do is to rely on books and theory too much. It takes experience to dictate the market.

Ability to see the cycle from understanding micro and macro economics behaviour of the target market opens up opportunities for those who see to control market movements.

The foundation of this thinking is to understand that it’s not about what products you want to sell, nor what products you think people would want, but what is in the human mind.

Understanding the human mind allows one to create products which are addictive to the human mind.

And like all humans, we get bored eventually. And it is up to us to choose to perform a “makeover”.

Some do not understand and create a product which no one is familiar of. It takes time and could be years before it becomes a hit.

The keyword here is “familiarity and innovation”. Create something people are familiar with and innovate it.

Now comes the hard part.

When things are sailing smooth, how do you predict the movement of your competitors?

This element relies a lot on one’s understanding of the operational capability of the industry to create a desired “product”.

If one do not even understand the total flow of the supply chain, operation technique and technology, say goodbye to your product.

Given time, a competitor will come in and grab it.

Understanding the human mind, macroeconomics, microeconomics, create products with familiarity and sound knowledge of the operational flow will make one understand why the market moves up and down.

And lastly, from all our efforts, it is God which determines whether one succeed or not. Truly we can control variables but God controls and dictate all variables.

This is a heavy advice, but it serves as a reminder to myself and to anyone who wants to be successful.

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