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Family Sizes Are A Strategic Factor You Must Focus On

Mar 21, 2008
The ultimate source of irresistible forces comes in physical changes. For instance, with ice disappearing from the North Pole, undoubtedly entrepreneurs will begin offering adventure trips to that once inaccessible locale.

Humans make physical changes as well. People are taller and heavier than ever before. This has big implications for clothing, furniture, and food manufacturers.

Enterprises often need to develop new products or services to tie their future most firmly and effectively to the irresistible forces of their choice. Where several irresistible forces are available, wise organizations will pick those that have the greatest likelihood of stability and continuation, as well as good growth trends. Demographics can provide just such an optimal irresistible force.

One of the most interesting long-term changes going on now is that most families in the developed world are getting smaller. Without immigration, for instance, Europe will see its population decline.

This trend is now so strong that it also extending deep into developing countries. For example, in China the policy is to have only one child per family.

The number of one-child households is increasing geometrically around the world as a result. Parents tend to spoil the only child, which means that expenditures for each child for toys and games will probably grow much faster than the number of children born.

Those who provide better quality, more expensive choices (such as American Girl dolls) will probably prosper at the expense of those who produce mass-market products that succeeded in the multiple-child family (like Mattel's Barbie dolls). No wonder Mattel acquired the company that makes American Girl dolls.

Unfortunately, that move was a flop. Why? Both sets of dolls didn't appeal to girls who wanted to play with dolls which looked more like their friends. Bratz quickly became the beneficiary of that trend.

Girls are acting more like grown-ups at younger and younger ages . . . a further part of the trend to smaller families with older and older parents, another important demographic trend.

To succeed with prospering in light of demographic trends, you also have to change the way you manage your enterprise to match the way customers look at your offerings. Mattel didn't do that.

Because demographic trends are widely reported, you'll have several years of notice if the number of multiple-child families start to increase in developed countries. All you need to do is monitor the trend and be prepared to act when you notice a change.

Unless you are in the diaper business (or some other industry that serves new-borns and their parents), the inevitable delay between births and the impact on your products or services will give you the time to make highly optimized adjustments. That delay will even give you time to learn new management methods.
About the Author
Donald Mitchell is an author of seven books including Adventures of an Optimist, The 2,000 Percent Squared Solution, The 2,000 Percent Solution, The 2,000 Percent Solution Workbook, The Irresistible Growth Enterprise, and The Ultimate Competitive Advantage. Read about creating breakthroughs through 2,000 percent solutions and receive tips by e-mail by registering for free at

http://www.2000percentsolution.com .
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