The Question to Ask in Tough Times: Do You Stand Out or Fit In?

In tough times many are tempted to buckle down and stick to the basics; minimize risk and lay low until it all blows over. It’s a natural reaction and understandable when even General Motors is now on the government dole. But is that instinct to play it safe actually what led to GM’s problems and is the answer really more of the same? How does that relate to your business?

Jeff Sabatini is a friend of mine from way back and he’s been covering the automotive industry for years. His article in Forbes this week cuts to the core of the condundrum outlined above: is now the time to stand out or fit in?

Sabatini writes, “Over the past three decades [General Motors] has joined the rest of the industry in building increasing numbers of mediocre machines, cars that are neither particularly interesting nor particularly good, even as GM itself has been selling fewer and fewer vehicles.”

The problem as Sabatini sees it is that with more and more competition in the automotive market (even the Chinese are making strides in mass-produced, cheap cars), it’s much easier for GM to simply be lost in the crowd. When you’re facing extraordinary challenges where you’re fighting and positioning for every customer, is it really smart to simply be like everyone else and HOPE that you’re found?

Of course, it’s easy for journalists and marketers to wax on about how a massive multi-national like GM can right its ship. The fact of the matter is that while exotic styling and awe inspiring performance vehicles stir the emotions, that doesn’t necessarily translate into sales.

As Sabatini notes, “…to bankruptcy judges and finance people I'm betting those Chevys look a lot better than a car like the Pontiac Solstice, a beautiful roadster whose 2008 sales accounted for under 2% of the volume of that pickup.”

Just the same, it doesn’t seem wise to me to pull back entirely on those riskier ventures since the rewards can be so great. When everyone else is laying down that might be the perfect time to stand up and be seen.