Sunday, December 29, 2019

2020: New Year or Perfect Vision

2020 will be a year where you'll need perfect vision and rock-steady conviction. The beginning of the new decade will bring, as the Chinese proverb warns, 'interesting times'.

In 2020 the business landscape will be fraught with change and disruption. Following are a few thoughts that may assist you in navigating the upcoming upheavals. 

4M Performance



- 2020 will introduce this one-of-a-kind, online business accelerator which will ignite revenue growth and market-reach. Going live in the first quarter, at a cost of only $7 per month, 4MP will allow its members face-to-face access and interaction to a cadre of business experts to solve their management problems and provide information and takeaways the are executable and financially feasible. Look for more information on 4MP in the coming months. 






Retail Businesses

 - Over 23,000 retail stores/outlets shuttered their doors in 2019 (a record), yet retail sales will reach their highest level ever. Problem: the U.S. is over-stored. For example, there are 23 sq.ft. of retail space per person in the U.S. vs. only 5 sq.ft. per person in England.

The trend favors BIG retailers (online and brick & mortar). To survive, small retailers will be required to find a niche while providing the very best service possible.

Streaming Entertainment

What became a major battle ground in 2019 will continue, in earnest, throughout 2020. The race to amass streaming subscribers by a slew of online content providers is just getting started.

A recent study by the Wall Street Journal showed that the average American is willing to spend $44 per month on streaming platforms, which equates to 3.6 services per household. Netflix will continue to dominate with Disney its biggest competitor.

Food (Meal) Delivery
Who will come out on top?


2020 will be the year of the 'great food fight'. The highly competitive meal delivery service, fueled by venture capital, is populated with high growth/no-profits businesses. Demanding service requirements, low fees, and disloyal consumers make meal delivery so competitive that Amazon exited in 2019.

Companies like DoorDash, Uber Eats, Grubhub, and Postmates, dominate. In an effort to gain scale, Caviar was eaten by DoorDash, while Eat 24 and Seamless were gobbled-up by Grubhub.

The survival strategy is team-up with restaurants (preferably the large chains) or other retailers outside the food industry. As such, DoorDash teamed with Wendy's, McDs, Cheesecake Factory, and Chipotle. While Uber partnered with McDs and Starbucks. Grubhub with Taco Bell and KFC. Postmates has partnered with Old Navy for delivery.

Another tactic is to use subscription plans to help retain customers. For example, Postmates offers free delivery for a fee of $9.90 per month.

2010 - 2019 : The Most Profitable Decade in History?

As we enter 2020, we are looking back on what many will view as the most profitable decade in U.S. history. Lower tax and interest rates spurred investment and business profits.

The U.S. became energy independent - increasing its leverage in foreign affairs and reducing global hostilities by taking the energy factor out of the war equation.

All of the stock exchanges made new highs and returns on equities were huge.  Netflix, the decade's best performing stock, saw a $10,000 investment in 2010 turn into $470,000 10 years later.

I look forward to 2020 and the opening of a new decade. The business environment offers great opportunity but competition is only a click away. Consumers are willing buyers but are more selective and more disloyal then ever before.


May the New Year bring you health and prosperity.

Jim Lavorato, Founder, 4M Performance 
           
             

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