Surviving change requires vigilance

By Selwyn Parker

The fierce competition in Australia's low-alcohol beer market between Lion Nathan and its perennial rival, Carlton United Breweries, illustrates one of the abiding truths of fast-moving markets. Namely, survival requires eternal vigilance - and a periscope.

To date, the brewers have taken turns to dominate this important sector. At mid-June, Carlton was back on top but Lion Nathan's latest response, Hahn Premium Light, was edging towards supremacy.

Between them, the rivals have slogged their way to number one in the category five times. No doubt, they will swap places a few more times yet.

For Lion Nathan chairman, Douglas Myers, the lesson is obvious: "Cannibalise your own product. We learned that if we'd developed a new product while we were ahead, it would have been smarter. Even when your product is on top, you have to be working on the next one."

In the just-released Douglas Myers, What I've Learned In Business [Nahanni Publishing], the brewer emphasises that it is critical in a global economy prone to abrupt changes to look ahead, predict events that will affect your business, take steps to control risk, and look for opportunities.

"Most businesspeople don't focus on the future enough, or soon enough," explains Myers. "Read the signals, and think and plan for the next stage."

* Contributing writer Selwyn Parker is available at wordz@xtra.co.nz