Digital platforms such as Amazon, Uber and Netflix have reshaped industries, seamlessly connecting businesses and consumers, while leveraging data and technology to deliver personalized experiences that redefine modern commerce and entertainment. The success of platforms highlights the transformative power of digital ecosystems in fostering innovation while driving sustainable growth. 

“Winning Through Platforms: How to Succeed When Every Competitor Has One,” a best-selling book by Ted Moser, a senior partner at Prophet, highlights the essential role of digital platforms in achieving business success in the modern age across industries. The book serves as a playbook by diving into the different types of platforms as business models while decoding growth moves from a decade of platform competition. 

This framework guides companies to leverage platforms for brand relevance, customer value growth and efficient customer acquisition. 

Rapid Digitalization of Economies and Shift in Consumer Behavior 

Asia, especially Southeast Asia, is experiencing rapid digitalization and reliance on online platforms fuelled by a multitude of factors – the COVID-19 pandemic, internet penetration, a burgeoning middle class and supportive government policies. This shift prompted digital transformations across businesses, leading to a boom of digital marketplaces and services such as Shopify, Grab and Lazada.

Meanwhile, companies are heavily investing in strategies to create and meet demand across the entire customer journey. Companies focus on Demand Plays and Transformation Plays to meet evolving consumer needs and transition traditional businesses into digital domains. 

Temu: Aggressive User Acquisition Through Demand Plays 

Temu, a brand of China’s Pinduoduo, entered the global markets in 2022. It has quickly disrupted the status quo of the global e-commerce landscape, becoming the No. 1 shopping app on Apple’s App Store, surpassing Amazon, Target, Walmart and SHEIN. Temu’s success is made possible by its unparalleled demand-gen capabilities. Through the campaign “Shopping like a billionaire,” Temu offers a clear yet differentiating value proposition of providing cheap and accessible products for everyone. Beyond a clear brand message, Temu employs a comprehensive demand–gen strategy, from agile supply chain, data-driven user analytics, to aggressive marketing campaigns and pricing schemes, as well as savvy digital marketing and user acquisition tactics. 

Huawei: Leading at the Frontier Through Transformation Plays 

Huawei stands out as a prime example of strategic innovation in action. Initially recognized as a B2B telecom leader, the company seized the opportunity to diversify into B2C markets by introducing smartphones renowned for their cutting-edge camera technology. This transformation underscores Huawei’s unwavering commitment to innovation, as evidenced by the staggering investment of over 11 billion RMB in R&D over the past decade. Amid U.S. sanctions, Huawei demonstrated agility by strengthening its own HarmonyOS operating system. Recently, Huawei entered the electric vehicle (EV) sector by launching startup EV brands AITO and LUXEED in collaboration with automotive players Seres and Chery, respectively. These EV models integrate HarmonyOS for Automotive, seamlessly synchronizing with Huawei’s mobile operating system to deliver a cohesive user experience. This integration reflects Huawei’s vision of creating an ecosystem centred around HarmonyOS, extending its influence beyond telecom. By leveraging its technological prowess and strategic partnerships, Huawei has embarked on a transformation journey to shape the future of multiple industries, cementing its position as a global leader in the ever-evolving landscape of technology and innovation. 

Need for Innovative Solutions in Competitive Markets 

E-commerce, fintech, AI, and IoT have become some of the most disruptive technologies for traditional business models, where a holistic platform strategy plays a major role. In Asia, a fast-growing consumer market that’s largely digital – and mobile first – this is especially the case. Leveraging these technologies to develop their own platform through digital transformation while taking a customer-centric approach now becomes a key challenge for traditional companies. To adapt and futureproof, the most resilient companies are often agile in prioritizing innovation efforts. Prophet’s recent research on how innovation builds resilience revealed that 35% of the respondents in China and Singapore have formal innovation incubation programs, compared to only 15% of the respondents in the U.S. and the UK. 

Consequently, companies are channelling resources into the development of innovative platform features and services, leveraging Innovation Plays to continuously provide new and distinctive platform benefits for a competitive edge. Moreover, businesses strategically explore Portfolio Plays to diversify roles within the platform ecosystem, emphasizing continuous innovation across product development, market approach, and customer engagement strategies. 

Grab: Achieving Impactful Growth Through Innovation Plays 

Grab serves as a standout example of a platform business that maintains sustainable growth by bringing ongoing innovations to market. Originating as a ride-hailing service, Grab expanded into a super-app business, the “Everyday Everything App,” offering new products and benefits including food delivery, digital payments, and financial services. This strategic shift capitalized on Grab’s extensive user base and diversified revenue streams. Additionally, Grab deployed collaborative go-to-market strategies, by partnering with local governments and financial institutions, to extend its reach and tailor offerings to specific regional markets. To deepen its connection with a wide array of customers, partners and stakeholders, Grab has also further defined its company mission – to drive Southeast Asia forward by creating economic empowerment for everyone – while continuously implementing various ESG initiatives. 

Nike: Connecting with Evolving Customers Through Portfolio Plays 

Nike exemplifies effective portfolio diversification, transforming from product innovator to a digital marketplace leader. Nike integrates digital platforms with physical retail, offers market-specific mobile apps, and engages users through customized experiences and robust digital ecosystems. Through digital platforms like Nike Training Club and Nike Run Club as well as offline community activities, Nike engages with users beyond transactions. This platform-driven strategy not only solidifies Nike’s leadership in leveraging digital platforms for growth, but also resonates exceptionally well in the diverse and unique markets across Asia, where tailored experiences and integrated digital solutions are increasingly sought after.  

Regulatory and Cultural Diversity of the Region 

Asia’s diverse regulatory and cultural landscape poses unique challenges for platform businesses. With varying regulatory frameworks, cultures, languages and economies, consumer behaviors and preferences can differ vastly across different Asian countries. This complexity significantly impacts how companies approach market entry and expansion, where adapting their business models and marketing strategies to different regulatory and cultural contexts becomes pivotal. 

To effectively navigate these intricacies, companies employ Design Plays to develop differentiated value propositions that align with local preferences and cultural sensitivities. Meanwhile, companies should also tailor O+O customer experiences to different Asian customers through Interaction Plays, to enhance engagement and foster brand loyalty. 

IKEA: Mastering Localization Through Design Plays 

IKEA’s entry and expansion in China is a textbook example of a strategic design play, reflecting a deep understanding of local preferences and behaviors. Going beyond furniture sales, IKEA adapted its business model to overcome unique market challenges and fit the Chinese lifestyle. Product designs were adjusted for smaller living spaces, which was a shift from its offerings in European markets. As part of its location strategy and with the support from an extensive logistics network tailored to China’s infrastructure challenges, IKEA placed its stores nearer to city centers with easy public transport access, catering to most Chinese consumers who are less likely to own cars. Furthermore, by quickly embracing digital transformation, IKEA offered online shopping, home delivery services and popular payment options like Alipay and WeChat Pay, exceeding Chinese consumer expectations for retail convenience. 

Lululemon: Building a Loyal Community Through Interaction Plays 

Lululemon’s approach in Asia exemplifies a successful full-journey engagement, seamlessly integrating online and offline experiences, offering personalized assistance, and fostering community experiences. Through dynamic segmentation, Lululemon tailors offerings to diverse Asian audiences, driving conversions with personalized recommendations and localized content. Lululemon also adopts an agile content strategy, featuring regional influencers and traditional Asian wellness practices. It leverages user-generated content, including customer testimonials and photos, to foster authenticity and engagement. This customer-centric approach has strengthened brand loyalty and deepened the connection with customers in Asia. 

Reimagine Your Business Strategy with the Platform Mindset 

From Huawei’s transformative journey to Grab’s and Lululemon’s innovative strategies, these best practices exemplify how companies are leveraging platform plays to navigate Asia’s diverse market dynamics and evolving consumer needs. 

Whether your organization is already a platform business or not, adopting a strategic platform mindset is essential for companies to stay competitive today. From developing a comprehensive platform strategy to evolving existing capabilities, the six Platform Plays illustrated in “Winning Through Platforms” provide essential insights that inform actionable next steps for a futureproof growth strategy: 

1. Assess your current capabilities and needs to determine the most suitable platform strategy.  Understand which role your platform can play within your business portfolio and select the one that aligns with your strategic goals.  
2. Consider developing a comprehensive platform strategy that goes across all aspects of the organization. This involves clarifying how the optimal platform role aligns with the company’s strategic objectives to maximize differentiation and growth. Leaders must also identify the strategic implications of what must change in the business.
3. Build an internal case for change and digital transformation while designing a transformation vision and roadmap. This includes the internal moves that need to be made from an organizational perspective, including structure, culture, processes, and capabilities.  
4. For mature companies who have already found success in platforms, find opportunities to evolve your current platform strategy. Revisit customer experience strategies to deepen engagement and conversion; adopt more complex platform roles to drive deeper integration into the business; or harness the power of data and AI capabilities to refine and extend your ecosystems to new, differentiated offerings. 

The Frustrating Gap between Strategy Definition and Value Capture   

The poly-crisis moment that we (hopefully) are all navigating has generated a nearly ubiquitous reset of corporate strategies. According to Gartner, 79% of CEOs will have revisited their business strategy for the post-crisis environment by the end of 2024. These companies are now shifting attention to strategy activation to capture both productivity gains and growth.  

This is a profound pivot and, not surprisingly, teams are struggling to execute at pace. In our work with CEOs beginning in late 2022 and extending to today, we have seen a sharp increase in dissatisfaction with what you could call “value appreciation”. These laments commonly take one of the following forms:     

The Valuation Gap – “Our topline performance is strong, and we’ve built a superior platform. We’re aligned to long-tail secular trends. But analysts are having to work too hard to find that story line.” – Technology CEO 

The Differentiation Gap – “We have a unique collection of assets, especially our software/hardware stack, but no one, including our sales teams, can articulate a distinctive value proposition.” – Industrial CEO  

The Narrative Gap – “Our balance sheet is strong. Our portfolio matches the market. We have talented teams and everyone is working hard. But our corporate narrative is outdated. Everyone has their own version of what’s going on. We need a new, clearer, more inspiring story to rally around.” – Financial Services CEO   

These sentiments and others like them are being expressed by talented executives that have led global teams through multiple crises. They have successfully updated their strategies to meet the moment. Yet today they are also identifying a missing link between strategy articulation and in-market execution. Gaps that have material impact on share price, sales performance and talent economics.  

The Story of Value 

Working with these leaders Prophet has developed a new leadership tool, The Story of Value. At the highest level, the story of value brings the assets of business – both hard and intangible – into a sharp, distinctive and inspiring narrative. It is a story that crystalizes the value that the business creates for shareholders, customers and employees, defining its unique and essential role in the world. It simplifies a complex business into a compelling statement of value – a common language for executives and teams in words that are proven to win in the market.     

Companies are using Stories of Value to pull business strategy forward into various strategy execution workflows, including: 

• Increasing performance of customer marketing and sales effectiveness through sharper value propositions.
• Aligning corporate communications around a distinctive market narrative focused on core value.
• Updating the employee value proposition and modernizing foundational corporate assets (e.g. purpose statements, values, brand positioning) to create a more cohesive culture.
• Arming finance, corporate development and IR teams with stronger investor day and roadshow presentations. 

Writing Your New Story of Value  

Creating an effective Value Story requires going beyond frameworks and workshops. The Story of Value methodology combines a rigorous focus on asset value with market-back insights on value drivers. This data moves through a process that forces clarity and elevates language, culminating in market testing to refine the work and validate its business impact. The end result is both a practical, execution-ready deliverable and a leadership experience that builds cohesiveness and shared belief.  

It has never been more critical to get post-M&A value creation right. With markets in a state of protracted uncertainty, businesses are more cautious about deploying capital and less patient for concrete returns. M&A activity continues in the pursuit of both revenue and margin growth, but only the most focused operators can achieve each deal’s potential on short timelines and tight budgets. 

We consistently see companies leave value on the table: they fail to reach their goal for value realization, don’t reach it in time, or back away and hedge due to a lack of confidence in the investment thesis. In the end, closing these gaps falls to the business leaders tasked with running the post-deal entity. Here are three key strategies to close those gaps. 

Conversations with business leaders involved in post-M&A activities revealed three crucial yet often overlooked factors—referred to as executional gaps—that executives must address to successfully achieve the value of the deal. 

1. Leaving customer-facing leaders out of the loop 
2. Deals with no value story 
3. Rigid talent models that erode people value (talent and culture) 

Gap 1: Leaving Customer-Facing Leaders Out of the Loop 

For practical and legal reasons, deal teams typically operate with secrecy. This leads to scrambling across the organization when a deal nears announcement. Marketing, communications, and talent teams often become disconnected, resulting in lackluster strategies. This inefficiency puts a time lag on customer-facing decisions and can result in the wrong decisions being made. Brand changes, go-to-market portfolio construction, talent integration plans, and other high-level decisions end up being led by an isolated deal team rather than in partnership with the organization’s functional experts. 

One M&A leader at a large healthcare company said: “Customer value isn’t realized until much later on because it isn’t planned for. [You are already] considering customer [downside risk] in the deal valuation, [why can’t the upside potential] be considered and planned for as well?”    

Recommendation: It’s unnecessary to complicate the M&A process by adding members to the team during due diligence. Instead, build a new step or action within the playbook to pulse out information from the core deal team directly to operating teams when moving toward close. This will help line leaders immerse themselves in the deal thesis and adopt accountability earlier in the process.

Gap 2: Deals With No Value Story 

Just because deal teams and capital committees understand the value creation thesis; it doesn’t mean that the deal has a value story. Ultimately every audience affected by the deal will need to know how this deal is adding value for them. Yet, internal and external stakeholders often receive very different versions of the story, if they hear anything at all. These fragmented stories don’t always connect, functioning like “point solutions” that speak to the short-term implications for a specific team, rather than amplifying the impact of the deal through a consistent, cohesive narrative that flexes across audiences and still ties back to a single core idea. 

One M&A leader underscored that “the deal story aligns the organization, and it gives them the fuel to change, doing the hard work to realize the value at the core of the deal premise.” This reflects what we’ve seen in market with acquisitions like Danaher’s acquisition of GE Lifesciences. Danaher had a unified plan and story for the acquisition, clearly creating a cohesive message that flows through each key audience. Danaher understood how the entire GE asset – from technology and product portfolio to customer relationships and brand equity – would combine into a powerful new life sciences operating company well before the deal’s close. That plan was then echoed to leaders across the company and into the marketplace. In the end, that cohesive story powered a new operating company, Cytiva, which was central to Danaher’s 110% share performance in the two years following the close of the deal.

Recommendation: Identify an expert, usually from the marketing, brand or communications team, to develop a story of value with the help of a cross-functional team communicating to different audiences. Marketing might personalize the core story for customers while investor relations might develop messaging aligned to what investors are looking for. The communications team might tweak the message for partners and Human Resources might build a North Star narrative for employees. While each message might be slightly customized for the intended audience, each must ladder up to an overarching message to drive alignment and spark value creation. 

Gap 3: Rigid Talent Models That Erode People Value (Talent and Culture)

While it’s critical to capture value by addressing internal synergies post-close, it’s also important to de-risk the integration plan by recognizing the unique cultural and talent contributions the acquired team brings. The asset likely carries new capabilities, usually with hard-to-hire skill sets which must be thoughtfully redeployed in the post-close entity. Moreover, if it was a successful operation before being acquired, it would have been fueled by a unique culture that needs to be acknowledged, and potentially leveraged as a touchstone for renewal or transformation.  

Several M&A leaders echoed this perspective saying, “If the primary driver of value is something tangible, the culture is overlooked because it is hard to value,” “If you force rigidity on a company, that drives culture mismatch, and it skips over the secondary value question of if the talent and culture could improve your own,” and “If you say ‘hey we love your asset,’ you need to consider the culture and people that created that asset, or you have blinders to the full value of it.” They also spoke to the importance of HR leaning in, as their insights can be critical to understanding what employment shifts will resonate within a company.

Recommendation: Build an employee ignition module into the playbook to build a human-centric strategy for retaining and activating the talent and cultural assets acquired in the deal.

Tech companies have adopted this approach; recognizing the significant value of the talent assets they are acquiring. Apple maintains an acquisition pipeline primarily looking for top talent from the acquired business or redeploy throughout their earn-out tenure. Apple views the acquired talent as a flexible, scalable asset to be used to drive growth well beyond the specific team or company in which they entered the firm. This flexibility not only lowers talent acquisition costs but also serves as a new “Talent Model” lever for value creation, speeding up value realization by applying the strongest talent to the most critical tasks. 

As competition intensifies and consumers grow increasingly fragmented, brands today must find ways to identify a precise pathway for growth. A successful growth strategy relies on a meticulously crafted portfolio strategy that acknowledges growth sources from layered perspectives. It shouldn’t merely react to present market dynamics but also anticipate future shifts in demand. 

To accomplish this, it’s critical to construct the demand-to-growth landscape, which serves as a pivotal initial step for companies to reach their growth ambitions. 

Define the Portfolio Strategy with a Demand-to-Growth Landscape 

In a previous article, we introduced the demand-to-growth landscape (hereinafter referred to as demand landscape), a systematic study that decodes category opportunities, and how it is best used to shape portfolio strategy, inform brand positioning and refine product portfolio. 

Operationalize the Portfolio Strategy to Accelerate Growth  

After developing a robust portfolio strategy using the demand landscape, leaders must then pinpoint the strategic anchor points within their categories for execution. Bill Gates once aptly stated, “The most brilliant strategy won’t lead to success unless it’s executed effectively.” This rings especially true in today’s business landscape, where marketers are required to show measurable results with every investment.  

Depending on the business and industry, the best way to operationalize and execute the portfolio strategy might look different. Here, we highlight two key applications: 

Application 1: Managing Consumer Segments Through the CRM  

The approach below offers an effective solution to companies aiming to utilize CRM effectively to manage strategic consumer segments from end to end.  

Leveraging the CRM: For companies heavily involved in digital and direct-to-consumer (DTC) channels, particularly in the apparel and beauty sectors where customer loyalty and retention plays a vital role, the CRM system is an indispensable tool. However, marketers often struggle with the vast amount of unorganized customer data, unable to capitalize on the valuable assets to drive meaningful engagements. Incorporating the portfolio strategy could offer a unique solution. 

Evaluating the Portfolio Strategy: A portfolio strategy enabled by the demand landscape analysis unveils how different brands under a business portfolio should capture different consumer segments. It’s crucial to strengthen the value exchange between these brands and their designated consumer segments, in order to guide consumers toward purchasing the brands and products designed for them. Throughout this process, brands must take an agile and iterative approach to ensure investments yield the desired outcomes by establishing effective methods for measuring progress and learning from efforts. But how? 

This is where the CRM system and the portfolio strategy come together. To effectively achieve the aforementioned goals, it is imperative to map the strategic consumer segments of the demand landscape against existing CRM data, i.e., tagging each individual consumer with the corresponding segment.  

Once each customer profile is categorized into its respective strategic consumer segment, brands are able to monitor segment growth by analyzing CRM data, thus indicating the effectiveness of the portfolio strategy and its execution.  

Advanced organizations may also synchronize digital and e-commerce efforts to customize product recommendations and content marketing to each customer based on the portfolio strategy (i.e., brand, product, and proposition relevant to each individual), thus accelerating strategy execution. 

Approach 2: Landing Portfolio Strategy at Retail Channels Through OBPPC 

This approach is particularly critical for companies in the consumer packaged goods (CPG) sector, where navigating diverse consumer needs and a complex retail environment is paramount. With the demand landscape approach, companies can formulate a portfolio strategy aimed at capturing distinct consumer segments and consumption occasions. However, they must also differentiate themselves at the moment of truth to meet the unique preferences of diverse shoppers within each channel. 

Hence, there is an opportunity to bridge the demand landscape and the Occasion Brand Price Pack Channel (OBPPC) models. The OBPPC framework was initially introduced by Coca-Cola to enhance on-channel execution. In essence, this model ensures that companies cater to varying shopper needs by offering the appropriate brands, packages, and price points within target channels. By providing a tailored assortment, more consumers can find satisfaction, and the company can strategically shift the demand curve for those who are less price-sensitive. 

All shoppers are different. They have different values and different preferences which lead to different price elasticities. We can create value by recognizing the differences in purchase occasions, and by offering a unique assortment of brands, packages and price points for each channel they are served by.

The Coca-Cola Company

Bridging the demand landscape with the OBPPC model offers a robust approach to operationalizing the portfolio strategy.  

By systematically following these steps, companies can effectively align their portfolio strategy with consumer demand and channel dynamics, maximizing opportunities for success in the marketplace. 

Contributors: John Wu, Associate; Yang Yu, Associate

In the fast-changing landscape of the Middle East, strategic investments for sustainable growth and resilience are paramount. With notable advancements in the non-oil economy, diverse sectors are opening up new opportunities for development. The region’s robust economic diversification efforts are positioning it as a leading hub for growth. Organizations need to think holistically as they balance challenges against potential. Those who make the right bets now, navigating those complexities, will yield results that mitigate risks, lead to progress in efficiency and sustainability and improve their employer reputation. 

CEOs should make sure these four priorities are high on their lists:  

1. Navigating EU Green Deal to Unlock Expansion Opportunities   

Many organizations in the MEA are eying market expansion into Europe, which means they must comply with the EU Green Deal that passed in May last year. Some of these issues, of course, are about regulatory mandates. Businesses must invest in sustainability measures to avoid market access challenges. From a compliance standpoint, organizations entering the European market must adhere to the stringent environmental regulations outlined in the deal. Many of these focus on carbon emissions and energy efficiency, which are crucial for market entry.   

But expansion requires thinking beyond regulations. European institutions favor businesses aligned with Green Deal goals. Consumers also prefer businesses that highlight sustainable practices. So do potential employees. Tapping into that environmentally conscious consumer segment means companies should emphasize the many ways they are transitioning to a green economy. Take every opportunity to expand and highlight ways the enterprise focuses on renewable energy, clean technologies and sustainable practices.   

Forward-thinking companies will recognize the EU Green Deal as a two-way street, offering abundant possibilities for transferring technology and innovation. Look for ways to collaborate with European counterparts to foster new solutions. Middle Eastern businesses that can leverage partnerships to enhance their competitiveness in the European market will have a smoother entry into European markets than those that go it alone.   

2. Embracing Sustainability as a Catalyst for Growth  

With international, national and local mandates growing more explicit, it’s easy to continue to view sustainability efforts as a costly drag on profits. That’s short-sighted. For businesses to grow, they need to replace that thinking, enhancing business ecosystems by aligning growth strategies with sustainability.  

Sustainable practices nurture growth. They create a level playing field with companies around the globe and enhance brand reputation. They help attract and retain talent. Middle East businesses can contribute to a greener future and strengthen their resilience and competitiveness by combining growth and sustainability planning.  

In seeking a holistic blend of these initiatives, businesses can look at the bigger universe they operate in, promoting partnerships and interconnectedness. Planning for a future dependent on and interacting with other companies, governments, and community groups makes aligning growth goals with sustainability in clear and measurable ways easier. Goals should encompass carbon reduction and eco-friendly product development.   

3. Fostering Local Growth Amidst Saudi Arabia’s Megaproject Surge  

So many changes are underway in the largest economy in the Arab world that it’s hard to keep up. In keeping with its sweeping Vision 2030, the Kingdom of Saudi Arabia has stepped up public relations, marketing and communications efforts and is emerging as a top global destination. Last year, the country welcomed more than 100 million tourists, a milestone it had hoped to reach by 2030. That’s a jump of 56% from 2019 and 12% from 2022.  

It has also won plenty of global attention for megaprojects, like NEOM, a $500 billion megacity under development.  

That’s all crucial for the growth of KSA. Yet there seems to be a growing gap in providing sustainable projects that benefit the local population against massive megaprojects. This gap leaves plenty of room for businesses to launch initiatives, better positioning them in this important market, including:   

• Prioritize local hiring of talent in both skilled and unskilled positions, contributing to job creation and economic empowerment.   
• Support skill development initiatives and training programs that enhance the capabilities of the local workforce.   
• Start infrastructure development projects throughout the value chain, which will connect to the vast business needs of megaprojects.  

4. Use Influencers and AI for Human-Centred Marketing  

Using artificial intelligence to power personalization and content creation is a trend that is as big in the Middle East as it is everywhere else. So is the importance of influencer marketing, particularly among larger corporations, and AI makes it possible to dramatically increase its reach.   

We are all for efficiency gains from thoughtfully deployed machine thinking. Yet as companies invest more in technologies, like GenAI for marketing and advertising, a crucial consideration for the Middle East emerges: How can companies maintain a human-centric focus? While consumers in the region are increasingly open to digital options, they’re wary of impersonal bots. They crave a human touch. That means companies need to find a delicate balance that preserves the creativity inherent in human behavior and the next generation of marketing. Even as companies step up investments in AI, they need to run all marketing solutions through customer-centric frameworks. Efficiency can’t come at the expense of genuine human connection.  

The past four years have been tumultuous, with executives, across industries, forced to navigate market-wide headwinds, high-interest rates and a weakening labor market. Thankfully, the recession many feared, never materialized. Yet, leaders prepared for the worst, with 2023 widely considered the “Year of Efficiency.” Companies minimized and cut costs, optimized productivity and — at times — restructured their organizations to get closer to the market and remain above water.  

However, the tide is shifting, and 2024 is widely regarded as a return-to-growth year in which resiliency will reign supreme. To better understand what is behind this sense of optimism, Prophet analyzed over 50 corporate earnings reports from some of the world’s largest businesses, across industries. 

Our research found that last year’s “doing more with less” strategy paid off for most organizations, creating 85% year-over-year growth in net income across the companies studied. That’s a drastic improvement from similar research we conducted last year, which found a 22% decrease in earnings in 2022. 

Now that companies have optimized their organizations, they are getting back to the basics of growth. They are investing in flexible growth strategies that can endure beyond cost-cutting initiatives and efficiency maneuvers, and, thus, 2024 is shaping up to be the “Year of Resiliency.” 

Five Top Learnings From This Pivotal Earnings Season 

Leaning into Growth, Once Again 

“Efficiency” and “budget cuts” were the flash words that bounced around in the first half of 2023. Now, “innovation” and “expansion” are center stage. This earnings cycle saw exciting announcements for new products, services and experiences that transcend traditional industry boundaries.  

In retail, for example, Target announced Target Circle 360, its new paid membership program. It is pulling a page out of Amazon’s and Walmart’s playbooks and living up to CEO Brian Cornell’s promise of “making sure that we make Target a growth company again.” After Walmart’s year of optimizing, it witnessed a significant 23% year-over-year growth burst in e-commerce sales, bolstered by the announcement of a new B2B purchasing site, Walmart Business. 

Others are also expanding their portfolio of offerings and innovating their go-to-market strategies. Apple is rolling out a new B2B service platform, Apple Business Connect. Pfizer is extending its expertise (and brand) beyond respiratory as it goes deeper into oncology. And Peloton is launching “Peloton for Business.” These expansions represent the beginning of an accelerating trajectory toward growth.  

Embracing GenAI as a Strategic Growth Lever 

Almost all the companies in Prophet’s study say GenAI is a top priority, playing a role in driving not just efficiency but sustainable growth. Major technology players are paving the way, both as exemplars of “moving from talking about AI to applying AI at scale” within their business to launching new products like Microsoft Copilot, Google Gemini, and Amazon Rufus that allow other industries to use AI to power growth.  

EdTech company Chegg is embracing GenAI by developing automated, higher-accuracy question-and-answer services. In entertainment, DraftKings is using GenAI to lower customer acquisition costs and improve its targeting capabilities across its marketing efforts, resulting in it raising its 2024 revenue guidance. In the energy sector, GenAI has helped ExxonMobil leverage automated deep-sea drilling and optimize its widely dispersed field assets, helping it beat earnings expectations. 

To be clear, GenAI faces challenges, with mounting social concerns — and lawsuits — tied to privacy and cybersecurity issues. And then, there are the massive costs associated with training, upskilling and managing new systems. While introducing new technologies into an organization is not new news, GenAI is at a scale that requires massive paradigm shifts for most companies to maximize its positive impact while minimizing the downsides mentioned.  

Harnessing Customer-Centricity to Fuel World-Class Experiences 

Companies with the most substantial potential to break through increasingly competitive interconnected marketplaces are discovering ways to harness technologies to enhance customer-centricity, establish deeper levels of relevance and deliver unmatched value. 

In healthcare, CVS Health realized 11.9% revenue growth by harnessing advanced analytics, machine learning, and process automation to predict customer needs and generate tailored care services, such as its ExtraCare loyalty experience. It provides personalized health and beauty products, and members can choose “benefits that best fit their needs.” MetLife uses advanced technologies to create personalized insurance products that cater to specific customer needs and risk profiles. United Health Group, Walgreens and Cigna are all leveraging technologies to coordinate value-based care, enhance digital offerings and improve the patient experience. As a result of these investments, every healthcare company in Prophet’s analysis beat analyst estimates for revenue and earnings in the fourth quarter. 

In transportation, Ford Motor Company brought in a former Apple executive, Peter Stern, to help adapt to the changing EV landscape and build customer experiences through Ford+. CEO Jim Farley describes that hire as “transformational for this strategically vital part of our business.” 

In another way to get closer to customers, GE HealthCare is acquiring MIM Software to complement Predix, its industrial manufacturing cloud platform. MIM Software’s AI and analytical capabilities across practices are reshaping the possibilities of precision care for patients and providers, enabling GE to “meet customers’ most complex and pressing needs, today and into the future,” says CEO of MIM Software Andrew Nelson, proving once more how customer-driven solutions continue to elevate experiences.  

Driving Next-Generation Employee Value Propositions 

It is no secret the workplace has vastly changed as executives grapple with the COVID-induced remote-hybrid debate, the repercussions of mass lay-offs and quiet quitting and the undeniable risks posed by rapid automation. Executives in Prophet’s analysis believe their talent are the critical lynchpin to driving the transformative growth most are seeking. Accordingly, many companies are backing up their claims with significant investments and shifts in compensation, development and employee well-being. 

The Home Depot’s 2023 decision to invest approximately $1 billion in annualized compensation for its frontline, hourly associates — even in a down year — illustrates the importance of nurturing what it considers its key differentiator: the “Orange Aprons.” This strategic move underscores the company’s recognition that maintaining a satisfied, skilled, and motivated workforce is essential for navigating economic uncertainties and securing sustained growth. It is paying off, too, with meaningful improvement in attrition rates and an increase in its customer service score by 600 basis points. 

In leisure, Hilton adapted to the changing dynamics of work by launching the innovative “Hilton Work Anywhere” initiative. By enabling corporate employees to work remotely from its global network of hotels, Hilton taps into the growing demand for flexibility and remote work opportunities. Comparatively, Cisco focused on building external economic resilience by partnering with global HR services company Randstad to equip over 25 million people with digital skills through Cisco’s Networking Academy. Such partnerships and reskilling programs are pivotal in powering the future of innovation, growth and global competitiveness. 

Moving to Profitable Sustainability Impact 

While sustainability has continued to be a top priority for consumers, more companies in Prophet’s analysis are now proving that “doing the right thing” isn’t the only benefit of pushing an innovative sustainability agenda. For instance, building materials and provider Holcim set a goal of achieving 100% renewable energy in U.S. operations by 2050, and its eco-friendly solution ECOPact concrete, now accounts for 19% of Holcim’s ready-mix net sales. The company is also “driving fast-paced growth in circular construction” through its waste-minimizing ECOCycle practice, helping it differentiate and grow as a leader in sustainable construction. 

Eastman Chemical is working to solidify its position as “a leader in creating a circular economy,” capitalizing on customer demand and growth opportunities by replacing plastics with recycled-content-made products and innovative molecular recycling facilities.  

By embedding sustainability into their core growth strategies and moving beyond 2030 or 2040 Net-Zero Carbon commitments, companies are addressing pressing environmental challenges and positioning themselves as forward-thinking leaders in their respective industries, setting a new standard for corporate responsibility and innovation…and driving sustainable growth. 

Acknowledgments: Jason Tan, Jane Lee, Zach Lipkin, Mae Mourtisen, Will Littlejohn, Erik Muenster 

In 2023, businesses in Asia faced significant challenges, including rising costs, economic uncertainties, and persistent inflation. In 2024, C-suite leaders are confronted with the responsibility of driving growth amid tight marketing budgets and increasing cost pressures. 

With a cautiously optimistic outlook for 2024, what should be the top priorities for CEOs and CMOs in Asia to enhance customer relevance and foster business growth? There are four crucial levers to unlock uncommon growth in the coming year: 

1. Optimize your investment allocation across the brand funnel with a focus on generating demand to continually drive conversion and loyalty.
2. Be hyper-focused on your customers – leaders need to shift from a product-centric mindset towards a customer experience-led proposition to capture a larger total addressable market size and customer share of wallet, and shape perception as a market leader. 
3. Adopt a unified marketing operating model to foster effective collaboration and integrated decision-making across business units. This will not only drive synergies but also uncover untapped areas of growth. 
4. Harness the power of AI to supercharge your growth – from uncovering customer insights for strategic investment decisions, to enabling personalised and engaging experiences for customers. 

In this article, we delve into these strategic priorities, helping leaders navigate the evolving market. 

1. Stepping up Demand Generation as the Catalyst to Ignite Growth 

In the post-pandemic era, consumer behaviors have become more intricate and diverse, challenging the traditional way of capturing the dynamic nature of the customer journey. C-suite leaders in 2024 must shift toward an agile growth strategy, with a strong emphasis on demand generation. 

It is now crucial for C-suite leaders to concentrate on demand-driven strategies for engagement, leads, and conversions throughout the entire customer journey. This involves creating an efficient channel mix using an agile approach for data strategies and crafting unique experiences to promote loyalty, advocacy, and repeat purchases. Most importantly, this requires a human-centric growth strategy rooted in consumer insights. 

For instance, AB InBev Korea collaborated with Prophet to gain a comprehensive understanding of the Korean beverage market, aligning with consumer needs to identify growth opportunities. This insight-driven approach guided targeted investments in channels and brand activations, stimulating growth within their portfolio. Similarly, a multinational athletic apparel retailer partnered with Prophet to tailor a marketing effectiveness model for APAC. This data-driven strategy enabled informed decision-making, optimizing their marketing mix across the brand funnel and driving demand in a fiercely competitive landscape, ultimately leading to accelerated growth. 

2024 Priority: Leaders must strategically allocate resources to strengthen demand generation, steering growth strategies based on iterative consumer and market insights throughout the customer journey. This shift will enable marketing efforts to be more effectively aligned to generate demand and propel conversion and loyalty. 

2. Strengthening Full-Funnel Customer Experience to Accelerate Conversion  

Amid economic uncertainties, 68% of leaders in APAC prioritize business resilience by emphasizing customer service. The Asian Banker reported that 77% of satisfied customers actively advocate for the brand, underscoring the pivotal role of customer satisfaction in retaining the existing customer base and fostering sustainable growth. 

As CMOs now assume a more influential role in strategic decision-making, a unique opportunity arises to integrate customer experience (CX) into the organization’s DNA, shifting from a product-centric to an experience-led strategy. At the core of this transformative shift, three key principles should be considered: 

A compelling example of how an experience-led transformation can drive tangible growth is Singapore Airlines’ Kris+. Launched in 2020, Kris+ was conceived as a lifestyle rewards program aimed at engaging users beyond their air travel experiences. Going beyond traditional mileage rewards, Kris+ consolidates a diverse array of rewards, privileges and payment options into a single app. This innovative approach not only provides users with additional opportunities to enhance their shopping experiences both during flights and on the ground but also adds substantial value. Singapore Airlines’ potential customer base has expanded, and Kris+ currently stands as a significant revenue driver for the airline, boasting over 2.1 million downloads globally since inception. 

2024 Priority: An experience-led growth strategy extends beyond the realm of bolstering engagement and loyalty. When executed adeptly, it serves as a catalyst for broadening the total addressable market, augmenting customer share of the wallet, and solidifying the brand’s standing as a market leader.  

3. Achieving More With Less Through a Collaborative Operational Model  

The role of CMOs has undergone rapid evolution, with an escalating demand for them to demonstrate Return on Investment (ROI) and contribute significantly to overall revenue. Consequently, CMOs are now more intricately involved in decision-making processes that span various facets of business strategy, including CX, product, sales, and, in some instances, directly managing these areas. 

For CEOs, establishing robust connections between diverse channels, disciplines, and departments within their organizations is paramount. This not only fosters effective collaboration but also ensures seamless decision-making across different business functions. 

Prophet’s Collaboration Flywheel 

Our research suggests that a progressive understanding of collaboration takes place over three phases. Read more. 

In 2022, Prophet played a pivotal role in supporting Cisco Secure’s transformation of its marketing operating model. The primary objective behind this strategic move was to enhance efficiency and collaboration across different functions. The result was a more defined structure among business functions, both regionally and locally, underscoring the effectiveness of strategic alignment in achieving organizational goals. 

Another noteworthy case is Luckin Coffee, one of the fastest-growing retail coffee chains in Asia. The brand, once on the brink of bankruptcy, was committed to optimizing its operational efficiency and quickly turned itself around within just two years, reporting a 7.2 billion RMB revenue in Q3 2023 and an 84.9% YoY growth. One of the key shifts Luckin took was to evolve CMO Fei Yang’s role to CGO, Chief Growth Officer, to oversee revenue growth, demand generation and customer experience on top of marketing. By integrating user operations and brand marketing, Luckin was able to increase its agility in identifying customer needs, innovating products, launching marketing campaigns and accelerating demand. 

2024 Priority: This strategic approach lies in not only the optimization of resource utilization but also the revelation of untapped avenues for growth across the entire business. By breaking down silos and fostering collaboration among different functions, businesses can achieve a holistic and streamlined approach to decision-making, ultimately contributing to business success and resilience. 

4. Harnessing the Power of AI as a Transformative Force

Generative AI (GenAI) technology has swiftly emerged as a transformative force on a global scale, particularly within the APAC region. An IDC study reveals that 70% of C-suite leaders in the APAC region are actively exploring or have already invested in GenAI. In our recent article, we also highlighted how the capabilities of GenAI can be harnessed for marketing effectiveness. However, the stewardship of human insights and brand strategy remains key.  

While many AI technologies are still in their early stages, capitalizing on this momentum requires cultivating a culture of innovation. This involves not only upskilling teams to adeptly harness AI but also addressing prevailing apprehensions and skepticism surrounding its integration. 

Beyond utilizing GenAI for productivity, equipping the workforce with essential AI skills positions them to unlock its potential, extracting valuable insights from extensive customer and market data. C-suite leaders, in particular, are encouraged to strategically implement AI to enhance customer experiences and customize offerings based on the dynamic and evolving needs and behaviors of their customers. 

An example of embracing AI integration is 7-Eleven Japan’s plan to leverage AI in 2024 to generate text and visual content for new products. Grounded in the analysis of store sales data and consumer feedback via social media, this approach is expected to significantly reduce the time needed for product planning and align product distribution with emerging trends. 

Similarly, Disney has been a trailblazer in incorporating technology, utilizing data from wristbands, IoT sensors, and strategically placed cameras around its resorts. This data-driven approach empowers Disney World operators to identify and address overcrowded areas, offering personalized promotions to encourage customers to move to less congested spaces based on their preferences. Looking ahead, the prospect of Disney using GenAI to enhance personalization, such as anticipating customers’ dietary needs before they enter restaurants, adds an exciting dimension to its growth trajectory. 

2024 Priority: As AI technologies continue to advance, it is imperative for organizations to possess a comprehensive understanding of AI, supported by clear guidelines and policies. This ensures the quality and reliability of AI-driven insights, thereby facilitating informed decision-making in an increasingly dynamic business landscape. 

Imagine a world where roads hum with electric vehicles (EVs), a vision that is rapidly turning into reality in many parts of the world. The global EV market isn’t just growing; it’s catapulting into a new era of innovation and opportunity. It’s far more than the $1.6 trillion realm of manufacturing EVs, batteries, and charging infrastructure. A more compelling question to ask is, “Which industries stand to benefit from this transition?”  

Simply put: Which industries will be disrupted and who will benefit from this global shift towards EVs to drive business growth?  

In this article, we broaden the aperture to focus on the $9 trillion opportunity (a figure based on Prophet internal modeling) that we estimate will exist across a diverse range of industries that can harness the EV transition as a driver of growth and innovation for years to come.  

The EV Transition has Become a Business Reality 

We’ve applied the shift in consumer behavior towards the transition to EVs and found that there is more than $9 trillion in opportunity if you examine not just the transition itself, but the ripple effect it creates across connected industries. 

Regardless of where one might fall on the political spectrum when it comes to ESG, sustainability, and the transition to the electric economy – consumers’ shift to adopting EVs has moved from being a political debate to a business reality.   

An increasing number of countries have crossed what many are calling the ‘tipping point’ for EV adoption, where EVs account for more than 5% of new car sales – with 23 countries already having reached this milestone. Attempting to estimate the number of EVs on the road in the next few years leads to more unanswered questions, with history showing that once the adoption of technology hits the “tipping point”, growth can quickly become exponential. 

Turn on a sports game or YouTube video, and you can’t help but notice how car companies have increasingly been focusing their advertisements on EV products. Top auto manufacturers have been embracing the enthusiasm for EVs even before they can catch up on production, with 10 EV ads during the last two US Super Bowls alone, and several more EV ads planned for this year’s Super Bowl in 2024. Looking to more digital channels, YouTube ad spending to promote EVs was up 8X over in 2023. 

The Transition to an Electric Future 

The transition to electric vehicles is accelerating despite the many debates about how quickly they will be adopted. The amount of capital being poured into start-ups, infrastructure, and the needed recycling providers has created somewhat of a gold rush beyond solely EV production – with venture capital investment in the space up 50% in 2022 to over $1bn, led by a focus on charging, recycling, and other less flashy but critical components of the EV value chain. Over the last several years, governments around the world have committed huge sums of money to rapidly accelerate the electrification of their economies – with billions of dollars from the recent Inflation Reduction Act in the U.S. allocated to help accelerate EV production and build the needed charging infrastructure.   

2030 Outlook: EVs Reaching 10% of Total Cars on Road?  

Our sustainability team has carefully considered how the global shift to EVs will not just affect the auto industry, but also the myriad of interconnected brands and businesses who should be paying attention to this change as a potential driver of growth.  

Taking even the most conservative estimates, EV sales are predicted to account for over 30% of all global vehicle sales in 2030 – a far more modest estimate than the 50% of new car sales goal set forth by the White House for 2030.  

Simply put, that means roughly 10% of the total cars on the road will be EVs in 2030.  

The predicted large-scale changes in consumer behavior will generate massive ripple effects, forcing companies to decide how to adapt their business models, experience strategies, and value propositions. So how might this shift disrupt the many interconnected industries – Will this mean 10% fewer gas stations are needed? 10% less traditional auto mechanics? Fast casual dining at charging stations versus fast food at gas stations?   

“If 10% of the total cars on the road are EVs, how might this shift disrupt the many interconnected industries that will feel its ripple effects? Will this mean 10% less gas stations needed? 10% less traditional auto mechanics?” 

2030 Outlook: The EV Transition’s Impact on Three Key Groups 

The Ripple Effect of a 10% EV Shift 

Even taking this modest growth estimate, imagine the transformative wave the global shift to EVs will unleash. As we delve into this electric future, we need to answer three pivotal questions: 

1. Who will innovate and produce EVs?
2. Who will provide cutting-edge services for EVs?
3. Where will the EV journey take you – from driving to parking?

This exploration simplifies how to envision the EV future, slicing through the buzz to spotlight real growth opportunities. We highlight a few trailblazing industries in each category, poised to seize the monumental opportunities born from the EV wave. 

Innovators and EV Manufacturers  

This sector, the birthplace of EVs, is hoping to become a $1.6 trillion industry by 2030. This number is comprised of a mix of original equipment manufacturers (OEMs), charging pioneers, and battery innovators. For this group, one of the largest challenges will be rapidly scaling battery production and charging infrastructure to meet soaring demand. This necessity serves as a golden opportunity for growth.  

Key Insights: 

• Unlikely alliances are flourishing in the EV realm. Competitors are uniting, which resonates with consumers who applaud this shared mission for sustainability. This collaborative spirit to achieve a “common goal” is redefining brand relationships for the long haul. 
• The EV industry’s trajectory is highly dependent on governmental support. As political landscapes shift so do opportunities and challenges. Brands in this space must stay agile, ready to pivot with changing policies and funding sources. 

Example 1: Partnering to Build Efficiency Across the Grid 

BMW, Ford, and Honda recently announced a new joint venture called ChargeScape, aimed at creating a single way to connect electric utilities, automakers and EV customers. This collaboration seeks to create a unified platform for efficient energy management, connecting bidirectional EV charging with electric grid operations. If successful, ChargeScape could be a game-changer, exemplifying how partnerships can spark growth and innovation in the EV sector. 

Example 2: Competitors Collaborating to Charge Up America 

A surprising number of global automakers have partnered together to address America’s charging network challenges, namely, the lack of a reliable and expansive charging network. This ambitious joint venture plans to establish over 30,000 chargers across North America, complementing Tesla’s existing network and contributing to the national goal of 500,000 chargers by 2030. This collaboration showcases how competitive brands are aligning their interests for a sustainable future. 

Service Providers for EV 

Beyond manufacturing, we have the many industries that will service EVs, a group of industries ripe with a $2.8 trillion opportunity by 2030. From renewable energy champions to auto-repair and fleet management innovators, these industries are gearing up for an EV-centric future. 

Key Insights: 

• Long-term visionaries are investing boldly. Despite short-term uncertainties in EV adoption forecasts, large firms are strategizing about how to effectively harness the full potential of this transition. 
• Adaptability is key. Companies like Shell and BP have demonstrated that transitioning from traditional revenue streams to embracing the EV shift is not only necessary but a strategic move to remain relevant. 

Example 1: Shell Focuses on a Low-Carbon Future 

Shell is actively steering its brand towards a low-carbon future, aligning its thoughtful approach to building their new purpose with evolving energy market demands. Through comprehensive research and substantial investments between $10-15 billion by 2025, Shell is delving into low-carbon solutions like hydrogen, EV charging, and biofuels. They are already seeing success, with their UK EV-only service station witnessing a 44% utilization increase since 2022. Shell has been investing heavily in the EV transition and its focus on expanding its EV charging network is paying off, as evidenced by EV customers visiting more frequently and spending more. This significant shift reflects Shell’s commitment to leading in the global transition to renewable energy. 

Example 2: Bridgestone Mobility Solutions Launches EV Services Platform 

You might know the name Bridgestone from the globally famous tire brand; however, in recent years the company has expanded its offerings to be focused on mobility and solutions. As part of this transformation, Bridgestone recently announced the launch of an EV Services Platform “to make electrification easier, cheaper, and faster for fleets”. This platform is intended to help fleet managers, EV service suppliers, and drivers alike by creating a more efficient EV service ecosystem that helps manage costs and simplifies the process of using EVs as part of a commercial fleet. 

The New Destinations for Your EV 

Lastly, we explore industries less directly impacted by EVs but poised to innovate and capitalize on this shift. This group has the potential to capitalize on the increasing number of EVs and encapsulates a staggering $4.9 trillion opportunity. 

We focus on quick-service restaurants, convenience stores, and smart home providers. These industries are where EVs will likely spend significant time, especially considering the pivotal role of ‘Smart Homes’ in the EV charging ecosystem and the amount of time cars spend parked. The challenge for these businesses is more than installing chargers; it’s about reimagining consumer engagement and evolving business models in the EV era. 

Key Insights: 

• Many brands are enthusiastic about joining the EV movement but lag in aligning their operations with their climate pledges. The real work lies in transforming business models to sync with their environmental commitments. 
• A rich opportunity exists in deeply understanding the EV consumer. Pilot projects and test-and-learn initiatives are underway but grasping the unique nuances of EV consumer behavior – from charging habits to travel and purchase patterns – remains an uncharted territory ripe for exploration. 

Example 1: Fast Food Is Getting in on the Action 

Fast food chains are already beginning to direct their attention to the EV shift in road trip transitions. Subway announced a new pilot, the Subway Oasis, partnering with Gen Z EV Solutions to blueprint what the future of Subway EV charging stations may look like. The Oasis will include Wi-Fi, picnic tables, and green spaces – intending to appeal to the eco-conscious consumer – as well as their EV chargers. While this approach is unique, Subway is not the first company to explore this idea; Taco Bell and Starbucks have begun to pilot their own EV charging solutions, with each brand piloting charging stations at their locations with the intent of seeing how it might drive revenue and customer growth. 

Example 2: Schneider Electric Creates ‘Schneider Home’ App 

The French multinational company, Schneider Electric, recently shared its newest innovation, Schneider Home – an all-in-one smart system with the aim to consolidate the home energy needs of the future. Consisting of solar power, battery backup, EV charging, home automation and connected switches, the ‘Schneider Home’ allows you to visualize your energy use and customize your habits via their app. 

Schneider Electric exemplifies a company that has begun to successfully align its brand purpose, value proposition, and product offerings in the market. With the brand’s purpose of “empowering all to make the most of our energy and resources,” Schneider Electric has moved past articulating a future ambition and is actively expanding the transition to a more sustainable energy future, which includes a push from Schneider into eMobility solutions and the Schneider Home.