BY DR. TANAI CHARINSARN

NOVEMBER 28, 2016

“It is not the strongest or the most intelligent who will survive but those who can best manage change.”—Leon C. Megginson

A long time ago, nature taught us one rule, which many of you may have heard of - the rule of "Survival of the fittest," or the survival of the most suitable, as described in Charles Darwin's theory of evolution. However, in every era, the fittest are those who can adapt to changes in their environment, rather than necessarily the strongest, the most resilient, or the most intelligent. This concept also applies to those who thrive in different economic eras, from the Agricultural Economy to the Global Economy and the Knowledge Economy.

In today's rapidly changing environment, both traditional competitors and new market entrants often have the same goal - to compete for market share and capture the hearts of consumers. Adhering to traditional business models might not make one the fittest anymore.

So, how can adaptability be a competitive advantage?

Regarding adaptability, many people still think of it as reacting to change. However, waiting for the environment to change before adapting may not be timely. In this era, businesses need to be sensitive to the early signs of change, even if they are faint and not yet clear. We are talking about "proactive adaptation" rather than just reacting.

Three continuous factors that businesses should observe and monitor are consumer behavior, technology, and global connectivity:

1) Consumer Behavior: Studying the economic history reveals that consumer desires are a significant driving force behind economic changes. Initially, people's needs were basic, such as having enough food and shelter. As producers met these basic needs, people began seeking convenience, industrial products like cars or phones, and various services like restaurants, beauty salons, hotels, and healthcare.

As consumer needs evolve in the hierarchy of needs, businesses must adapt and offer more than just functional and emotional fulfillment. In the present era, consumer identity and value play essential roles. People buy products that reflect their identity, making customization a part of their value. Identifying these changes and seizing the opportunity to meet new consumer desires is crucial.

2) Technology: Technology is advancing rapidly in our current era, offering businesses the chance to operate more efficiently and cost-effectively. New generations are open to adopting the latest technology and are more willing to experiment. Consequently, the speed at which change occurs has increased due to the shortened technology adoption and product life cycles.

Therefore, monitoring and keeping up-to-date with technological advancements are crucial. This includes not only technology within your industry but also innovations from other industries that can be applied to your business.

For example, businesses in the food industry have started using tablet devices as menus, allowing customers to order directly from their tables without the need for a server. This is just one example of how technology from the information and communication technology industry has been applied to the service industry.

3) Global Connectivity: In this era, businesses can't operate in isolation. Open trade, rapid cross-border transportation, and the emergence of low-cost airlines have made global travel accessible to everyone. The internet connects customers and producers worldwide, expanding opportunities and markets. The food industry in a city like Bangkok doesn't cater solely to local customers but also to international tourists. This interconnectedness enables businesses to reach new customers and expand their reach.

Businesses need to look at both the supply and demand chains and continually observe and adapt to changes. They should assess factors that could affect their industry and seize opportunities or mitigate risks, such as the potential for establishing low-cost production in another country.

In summary, adaptability is a vital trait for businesses in the modern era, and it is achieved by staying attuned to changes in consumer behavior, technological advancements, and global connectivity. By proactively adapting to these factors, businesses can secure their competitive edge and thrive in an ever-evolving environment.