3 key factors for success in business

by Thomas Sim, 29 Apr, 2001

I like Michael Porter's 3 generic strategies for competition: Cost, Differentiation and Focus. Another interpretation of these factors is discussed here under my 3 key factors for success.

This is a capitalist world. What it simply means is that if you are hard working and good at your skills, you earn a good living. You may accumulate your wealth as well as multiply your capital (thus, capitalist) without much restriction. In a capitalist society, everything is possible unless you break the law, which is a very unlikely occurrence. You need not worry that the government will take away your wealth besides you paying for your taxes. You need not have to contribute to any state run rice ticket.

On the other hand, there is no mercy if you fail. The government will not rescue you as you fail. That is fair because you don't share your wealth with the government. All countries, except some left over communists, are embracing the capitalist style of economic model.

In such a free enterprising environment, the big corporations will trend to take up or dominate over the small companies. Megacorporations will become bigger with their huge resources and expertise. They employ cost strategy to make ensure their nearest competition cannot compete. They run R&Ds to be ahead of the cutting edge technology and put barriers to entry so that new products stand no chance. They employ connections, with the money that they have, to maintain leadership. They do anything to protect their long term interests at the expense of the law, government and the mass consumers.

Inevitably, the system of this society will end up with the capitalists becoming more capitalist. The strata of wealth distribution will be widened. The cream of the creams in the economic layer will become richer because it is money that earns money.

In short: Capital, Technology and Connection!

The capital and technology are the key factors in the western success of businesses. Among the successful companies from the west, it is usually technology driven. It is not that there is noconnection in their corporate culture. It is that this part of the world has been flooded with products of their technology for the last few decades. In particular, companies like Microsoft, Motorola and Intel.

What is particularly felt in our business culture is connection. Over night success or failure can be traced back to connection. Connection with powerful people is a vital part of every successful story of a corporation. You won't read this in the interviews. Some how, it is an accepted culture. You may very well remember names like Suharto, Marcos, and now, Joseph Estrada.

If you don't have enough capital, the only way out is by technology or connection. Connection is a difficult bet because it is intangible and never lasting. Your buddy can turn away from you because of human factors. It is a double edge sword.

In the light of our turbulent world the ultimate choice to be successful for an average person is through technology.