Entrepreneurship and digital marketing consultant, David Johny analyzes the situation of the former book market giant as an apprenticeship for companies
The Culture bookstore, an icon that marked generations of readers with the charm of its beautiful stores full of works, today is on the verge of bankruptcy. For entrepreneur and digital marketing expert David Johny, the reason was not simply the pandemic of the new coronavirus, the economic crisis or lack of a readership. The problem, him though, was to stand on the sidelines. “She resisted change and did not automatically adapt, stayed out of the game ”, define the consultant.
Just like Kodak, another big company that disappeared because it didn't fit into the new models, the problem for Johny was the management. Kodak was the biggest name in photography, offering state-of-the-art cameras and films. Until digital machines and, later, smartphones. The brand has disappeared from the market and today's kids no longer know what it means to have a Kodak. “This happened because it didn’t keep up with market trends with innovation and technology. It is clear that there are companies that do not renew, do not follow the new marketing lines and end up not resisting ”, Johny explains.
Livraria Cultura's biggest competitor was Amazon, company 100% that reached worldwide levels and huge market value. Meanwhile, Cultura preferred to remain focused on its physical store model, even in the midst of changing consumer behavior, who prefer to buy more and more online and receive at home. “In the business world there are rules of the game that are very clear and obvious, but sometimes, due to accommodation and company culture, it's hard to innovate, because they are pillars built years ago, the entrepreneur has to understand that changing is a necessary evil ”. David Johny explains that a basic premise is to always listen to customers, observe purchasing behaviors and be aware of competitors. Seeing that other companies in the same industry are having more positive results, it is time to discover what they are doing differently and innovate. “If you have a competitor with a business model that is working, what I have to do to compete is to adapt to the game. In the case of Culture, the pandemic has only shortened the end, that would happen sooner or later ”, the firm. The tip is to pay attention to the main pillars: management, finance and sale. If one is not well, bring down the structure. David's advice is the business model is always up to date, knowing how to reduce costs efficiently and not fail to offer the products that the customer wants.