The goal of any business is enduring, profitable growth. All three are critical. Profitable growth that is not enduring is short-term. There is no future. Enduring growth that is not profitable is a losing game. Again, this is a short-term situation. Growth that is neither profitable nor enduring is also a sign of short-sightedness and potential brand failure. Based on its recent reporting, where is Spotify headed?
The Wall Street Journal reports that streaming companies are finally becoming profitable. The article describes how streaming company profitability derives from offering customers a plethora of options at multiple price points associated with varying entertainment and sports packages.
The message from the fourth floor was loud and clear: “We need to reverse declining revenues.” Carol, the CMO of a medium-sized pet food brand, knows well that she needs to translate her business’s ambition into focused brand objectives for her marketing team.
Change sucks. But irrelevance is even worse. Today most firms, institutions and individuals are grappling with 3 levels of relevance.
Slowing population growth will upend both the macroeconomics of commercial potential in the economy as a whole and the microeconomics of competition within sectors and categories. Brands must adapt to grow.
