As Flexible as a Swiss Army Knife
Victorinox is a company that’s famous for making the Swiss Army knife.
First produced in 1891, this handy multi-tool is an instantly recognisable icon due to its distinctive red body.
It was also extremely popular, accounting for 95% of the company’s total revenue.
But the events that took place in New York on September 11th 2001 changed everything.
It became illegal to have any small sharp objects in your carry-on luggage and, as a consequence, sales of pocket knives plummeted.
For Victorinox to survive, something had to change.
Working with what they had (which was a strong brand with a solid reputation for quality), the company moved quickly to introduce different products like luggage, key rings and watches.
By diversifying, it was able to ride out the storm and now it’s famous knives account for only about 35% of its revenue.
It’s fair to say that any business that has been around for a long time will have experienced it’s fair share of challenges.
However, those that survive are the ones that adapt to their changing circumstances.
After all, for every Victorinox there’s a Blockbuster Video.
