What does a company need to do to beat the competition and stay ahead of the game? Brian Sozzi, CEO and chief equities strategist at Belus Capital Advisers, says these three rules distinguish the losers from the winners.
Related: The new rules for entrepreneurs
Rule #1: Invest in cool new products
Sozzi uses the example of sportswear maker Under Armour (UA). The company has been investing in wearable-tech. Last November Under Armour paid $150 million to acquire MapMyFitness, a digital platform that allows users to track and share data about their workouts (Adidas is suing Under Armour for alleged patent infringment of mobile-app technologies such as its Armour 39 watch and chest straps).
Watch the video to see why Sozzi believes Under Armour is best positioned in the wearable-tech space.
Rule #2: Understand the importance of big data and mobile
"There are a lot of companies that don't get big data and mobile and they remain so far behind," says Sozzi. Two retailers that have used mobile to their advantage are Starbucks (SBUX) and Chipotle Mexican Grill (CMG). Starbucks allows customers to purchase lattes with their smartphones and Chipotle recently announced that it's updating its technology network to include mobile payments and ordering apps. The move to mobile reduces transaction costs, speeds up the wait time and increases the number of customers served.
Rule #3: Incubate new brands
Chipotle is the winner here again. The quick-service Mexican chain has been experimenting with pizza and Asian food. The new restaurants, Pizza Locale and ShopHouse Southeast Asian Kitchen, follow Chipotle's mission of offering locally-sourced, organic and responsibly-raised meat.
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