by Joy Maitland | Mar 2, 2025 | Board Trustees, CEO, CFO, COO, CIO, Managing Directors, News & Articles
Brand loyalty is more than just repeat purchases—it’s a powerful driver of business resilience and long-term growth. A prime example is the automotive industry. General Motors (GM) recently secured the S&P Global Mobility Award for Overall Loyalty for the tenth consecutive year, proving that a well-established reputation and a consistent customer experience can make all the difference.
Why Brand Loyalty Matters for Business Leaders
For business leaders, loyalty isn’t just a marketing buzzword—it’s a strategic asset. Companies that build strong relationships with their customers gain distinct advantages:
- Stability in Uncertain Times
When economic conditions shift or competition heats up, a loyal customer base provides a buffer. Customers who connect with a brand on a deeper level are less likely to be swayed by short-term price changes or alternative options.
- Lower Costs, Higher Returns
Winning over new customers is expensive. Keeping existing ones is far more cost-effective and leads to higher lifetime value. A strong customer base reduces reliance on costly acquisition campaigns and drives steady revenue.
- Reputation and Influence
Satisfied customers become your best marketing tool. They spread the word, leave positive reviews, and recommend your brand to others—helping you expand your reach without additional investment.
GM vs Tesla: A Study in Contrasts
GM’s commitment to quality and innovation has earned it long-standing customer trust. The company’s U.S. electric vehicle (EV) market share climbed to 12% in late 2024, doubling from the previous year. Consumers are responding to GM’s expanding EV range, offering more choice and accessibility. More importantly, GM understands that loyalty isn’t just about selling cars—it’s about building an ecosystem that keeps customers returning, from service plans to seamless integration with new technologies.
Tesla, on the other hand, is learning the hard way that brand prestige alone doesn’t guarantee continued devotion. European sales plummeted by nearly 50% in early 2025, leading to an 8% drop in stock value. The electric vehicle market is becoming more competitive, and Tesla faces increasing pressure from Chinese manufacturers such as BYD and XPeng, who offer high-tech alternatives at competitive prices. On top of that, uncertainties around government incentives and Tesla’s own pricing strategy have led some once-loyal customers to explore other options.
The contrast is clear: GM has successfully evolved its brand to keep customers engaged, while Tesla is struggling to adapt to shifting market conditions. Even the most innovative companies must actively nurture customer relationships to maintain loyalty.
How to Build Lasting Loyalty
To keep customers engaged and committed, businesses need to focus on three key areas:
- Consistency is King
Customers stick with brands they trust. Delivering reliable quality, service, and experiences is non-negotiable.
- Meaningful Engagement
Loyalty doesn’t stop after a sale. Strong after-sales support, personal touches, and ongoing communication keep customers invested.
- Authenticity Wins
Customers can spot insincerity a mile away. Transparency, ethical practices, and a genuine commitment to customer needs build lasting trust.
Loyalty: The Ultimate Competitive Edge
In an unpredictable world, brand loyalty is what separates businesses that thrive from those that struggle to stay relevant. Companies that prioritise customer relationships alongside innovation and operational excellence will always have the upper hand.
Tesla is facing a wake-up call—will it adjust course and reconnect with its customers, or will loyalty continue to erode? And in your business, are you doing enough to ensure customers stay with you, even when new competitors enter the market?
How is your organisation strengthening its brand loyalty strategy?
The Right Conversation Can Change Everything. Let’s Talk.
by Atiya Sheikh | Mar 2, 2025 | Board Members, CEO, CFO, COO, CIO, Heads of Divisions, Managing Directors, News & Articles
Boeing was once a leader in aerospace innovation, symbolising excellence in engineering and manufacturing. Today, it faces a crisis driven by leadership decisions, corporate strategy, and technical failures. The company’s struggles serve as a warning to senior executives across industries—short-term decision-making and an excessive focus on financial metrics can weaken a company’s core strengths, with lasting consequences.
The Risks of Prioritising Shareholder Value Over Long-Term Stability
One of Boeing’s biggest mistakes was prioritising shareholder value over its core operations. The company spent an estimated $68 billion on share buybacks between 2010 and 2024. While these decisions pleased investors in the short term, they weakened Boeing’s ability to invest in research, quality control, and supplier relationships.
Instead of focusing on innovation and product excellence, Boeing’s leadership prioritised financial engineering. The consequences have been severe: supply chain failures, declining safety standards, reputational damage, and financial losses.
The lesson is clear: financial success should result from strong leadership, not be the sole focus of corporate strategy. Companies that chase short-term stock market gains at the expense of sustainable growth put their foundations at risk.
The Consequences of Outsourcing and Disengaged Leadership
Boeing’s reliance on outsourcing and offshoring aimed to streamline operations and reduce costs. In reality, it created a fragmented supply chain with serious quality control issues.
The 787 Dreamliner illustrates this problem. Boeing designed it with a highly outsourced production model, sourcing 30% of components from outside the US, compared to just 5% for the 747. Management assumed external suppliers would uphold Boeing’s engineering standards. Instead, a lack of direct oversight led to production delays, technical flaws, and costly redesigns.
Many industries have followed a similar path, prioritising cost-cutting over quality and control. The lesson for senior leaders? A company should never outsource its core competencies. While strategic partnerships and global supply chains have benefits, they must be carefully managed to maintain operational integrity.
Leadership and Its Impact on Organisational Culture
Boeing’s cultural shift stems from two major decisions:
- The 1997 Merger with McDonnell Douglas – This merger introduced a more aggressive, Wall Street-driven mindset. The company moved away from its legacy of engineering excellence and safety. Many analysts link this cultural shift to Boeing’s current struggles.
- The 2001 Relocation of Boeing’s Headquarters – Moving the headquarters from Seattle to Chicago distanced executives from frontline operations. This physical and cultural separation weakened leadership’s connection with engineers and production teams.
These decisions highlight an important lesson: leadership shapes corporate culture, and executives must remain engaged with core operations. The most successful organisations ensure that senior leaders stay closely connected to their people, processes, and products.
Lessons for Today’s Business Leaders
Boeing’s challenges are not unique to the aerospace sector. Industries such as technology, finance, healthcare, and manufacturing face similar pressures to cut costs, improve efficiency, and satisfy investors. However, as Boeing’s experience shows, prioritising efficiency over strategic investment can create long-term instability.
Key takeaways for executives and senior managers:
- Sustainable success requires long-term vision – Short-term financial gains should never compromise operational excellence and innovation.
- Outsourcing must be measured, not excessive – While external partnerships can improve efficiency, businesses must retain control over their most essential processes.
- Leadership must stay connected to the core business – Disengaged executives risk losing sight of the organisation’s purpose and values.
- Culture is a vital asset – A strong, mission-driven culture enhances resilience during crises.
A Path to Recovery?
Boeing’s new CEO, Kelly Ortberg, appears to recognise the need for change. His decision to base himself in Seattle rather than the company’s Arlington, Virginia, headquarters signals a return to hands-on leadership. His approach—prioritising safety, quality, and direct engagement—could help restore Boeing’s credibility.
For leaders across industries, Boeing’s story is a reminder that business success is not just about financial performance. It is about building a company that can stand the test of time.
How is your organisation balancing financial priorities with long-term sustainability?
The Right Conversation Can Change Everything. Let’s Talk.
