Honeywell Business Strategies
Honeywellâ€™s business success for the 125 years that it has been in business is definitely made possible by the strategies and ideas the founders and managers applied in running it all through the past decades. These ideas, which are universal principles of business success, can be adopted into any industry to achieve similar success, and they include:
Innovation, Bedrock of Business Success
Having an innovative, and uncommon product, which provides huge value to users, is the foundation upon which business success is laid. This is a strong determinant to how far your business can be successful. No matter how hard you can promote a product, if it isnâ€™t unique and serving a dire need, the success of that business cannot be guaranteed.
Honeywellâ€™s success was sure right from the beginning with the invention and popularity of the innovative product, â€œdamper flapperâ€, which enabled people to automatically keep their homes at conducive temperatures all day and night.
Seek to Lead Your Market
The number one position is the best to be in your industry to achieve tremendous success. Therefore, you need to have a workable plan to follow to get to the top of your industry.
To be market leader, Honeywell Inc.â€™s strategy was to acquire well established companies that had the resources, expertise, and market share that it needed to dominate the industry.
Expanding Your Market
The world has become a global village with advancement in communications technology. You could easily increase your sales or income astronomically if you expand into foreign markets rather than engaging in fierce competitive battles with other companies in the local market.
By starting to officially expand into foreign markets in 1935, Honeywell took position to reap bountifully from the massive global market available.
Continue to Improve on Your Product
When you improve on your product, you are adding value to it, and your customers will appreciate it by continuing to buy from you, just as more people will be willing to try your product for the first time. No matter how good your product may be, there will still be one or two ways your customers would want it better.
In 1953, Honeywell launched the T-86 â€œRoundâ€ thermostat, which was an improved version of the first one, and which became extremely popular with users.
Diversifying Into Related Industries
When your business is firmly rooted, the next thing to consider is adding related businesses to it. By this you will be taking advantage of available profitable business opportunities, which you can execute with your prevailing expertise. And you will be increasing your income.
Honeywell is today a well diversified company with business interest in several related areas, such as heating controls and alarm systems, security, defense, and aviation.
Concentrating on Area of Strength
A lot of businesses fail because their owners or managers lose focus after sometime and begin to dabble in and out of other businesses they do not have the knowledge or experience to run effectively. Success is guaranteed if you concentrate your time, efforts and resources on the business you have uncommon ability to operate better than other people. You should what products you can create and deliver better than other people and stay focus on it.
Realizing it veered off from its area of strength by going into the computer industry, which became unprofitable in the 1980s, Honeywell got refocused by selling off its computer business in 1991 to concentrate on businesses it had the expertise and experience to deliver effectively, and competitively.
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