Some examples of companies that have successfully implemented the practices outlined in the Victorinox Swiss Army case include Lego and Apple. Lego, like Victorinox, faced a significant challenge in the early 2000s but instead of cutting costs, they invested in innovation and expanded into new markets such as movies and video games. Apple, on the other hand, has consistently invested in product development and innovation, leading to the creation of new product categories like the iPhone and iPad.

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The Infinite Game

What’s the difference between leaders who only achieve short-term success and visionaries who create resilient and truly competitive organizations? Re...

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After 9/11, Victorinox Swiss Army knives were banned from carry-on luggage, presenting an existential challenge to a company where knives accounted for 95% of sales. Instead of extreme cost-cutting and layoffs, they doubled down on product development to inspire their team to leverage the brand in new markets. Today, knives account for only 35% of sales. The company has doubled its revenues by venturing into travel gear, watches, etc. As its CEO Carl Elsener says, "We do not think in quarters. We think in generations".

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One of the most innovative ideas presented in The Infinite Game is the concept of thinking in generations rather than quarters. This long-term perspective was exemplified by Victorinox Swiss Army knives. After their knives were banned from carry-on luggage post 9/11, instead of resorting to extreme cost-cutting and layoffs, they doubled down on product development. They leveraged their brand to venture into new markets such as travel gear and watches. This strategic shift not only diversified their product range but also doubled their revenues. This approach could be applied to other businesses facing similar existential challenges, encouraging them to think beyond immediate crises and plan for long-term sustainability and growth.

Victorinox Swiss Army's approach to business challenges existing paradigms by focusing on long-term sustainability rather than short-term gains. When faced with a crisis that threatened their main product line, they didn't resort to extreme cost-cutting or layoffs, which are common practices in such situations. Instead, they invested in product development and explored new markets. This approach not only saved the company but also diversified their product portfolio and doubled their revenues. Their CEO's statement, 'We do not think in quarters. We think in generations', encapsulates their philosophy of thinking beyond immediate profits towards building a resilient and competitive organization.

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