On rough terrain, the straight line isn't always the best path.
Attention has become a scarce resource, and agile companies perform 2.7 times better than their competitors… Bottom line, brands no longer have a choice: they need to master the art of strategic opportunism.
Amidst information overload and the lightning speed of market changes, being the first to seize an opportunity becomes a decisive competitive advantage. Brands that excel don’t just ride the trends - they turn every opportunity into a growth driver.
Strategic opportunism is characterized by its ability to create lasting value, leveraging a deep understanding of market dynamics to generate measurable business impact.
Take the example of a retailer exposing "shrinkflation," the practice of reducing product sizes while keeping prices the same. By being the first to publicly critique this practice, the retailer tapped into a latent consumer dissatisfaction. While some saw this as contradicting their own practices, the brand nonetheless made a lasting impression and reinforced its image as a defender of purchasing power. First to act, first to reap the image benefits - even if alignment wasn’t perfect, the positive media impact far outweighed the criticisms.
However, over time, credibility is key…
Opportunism with Conditions
While information flows abundantly, trust is hard to come by. A significant portion of consumers cite honesty about products and services as the key to their loyalty. Like it or not, authenticity has become not only an ethical mandate but also a sound business strategy!
The case of woke-washing perfectly illustrates the risks of poorly managed opportunism. Consumers are increasingly critical of brands that treat societal issues as just marketing tools. They’re not fooled, and the credibility of brands is at stake. To be perceived as authentic and legitimate, brands must back their commitments with concrete, sustainable actions.
To strategically become opportunistic, brands should adopt a methodical approach. This involves identifying internal, external, media, and societal insights. Brands must listen to their environment, understand market dynamics, consumer expectations, and emerging trends. Nike exemplifies this perfectly: by capitalizing on the Black Lives Matter movement while aligning their actions with their longstanding values of diversity and inclusion, the brand not only reinforced its legitimacy but also increased online sales following its "For Once, Don't Do It" campaign.
For effective opportunistic strategy, objectivation is key. It involves de-risking decisions by utilizing all available data and analyses to evaluate opportunities. By objectifying choices, brands can determine which opportunities are the most relevant, legitimate, and promising.
Measure to Win
To assess the performance of such opportunistic agility, precise KPIs are essential. This includes growth metrics such as market share increase, customer loyalty, and consumer engagement. The conversion rate of marketing campaigns, customer satisfaction measured by Net Promoter Scores (NPS), and incremental sales generated by opportunistic actions can provide a comprehensive view of the real impact.
To navigate effectively on challenging terrain, a brand must operate at two speeds. In the short term, it's about jumping on the right opportunity, being the first to capitalize on new trends and market shifts. In the long term, building a sustainable and coherent strategy based on solid values and authentic commitments is crucial.
In conclusion, opportunistic brands by strategy must find a balance between agility and authenticity, legitimacy and innovation. They need to be reactive and proactive while staying true to their core values. By steering their brand at two speeds and focusing efforts where it truly matters, they can not only survive but thrive in a dynamic and competitive environment. In the race for performance, there is no second place for those hesitant to seize strategic opportunities when they arise.
