Multinational companies entering the emerging markets are very different and more challenging from the developed markets where they are used to do business. Thus, the demand for these companies products is growing and despite the various challenges these multinationals swimming in strange waters, they maintain a competitive advantage in the market. On another hand, the same is true for companies operating in emerging markets outside their home market, who tend to oversimplify the differences between consumers of emerging and developed markets. Here are some similarities about emerging markets consumers and whether they hold true or not. • Importance of Price In emerging markets, multinational companies give to much importance to price and
Generally, big companies advance their knowledge of market, stay close to their customers, and prefer to develop existing technology gradually. Nevertheless, they experience difficulties with capitalizing on the potential efficiency, cost-savings, or new marketing opportunities created by low-margin disruptive technologies. Therefore, by doing so, companies provide an opportunity to “disruptive innovations” at the bottom of the market (Danneels 2004). It allows a whole new population of consumers at the bottom of a market access to a product or service that was historically only accessible to consumers with a lot of money or a lot of skill. Generally, products based on disruptive technologies are typically cheaper, simpler, smaller, and, frequently, more convenient to use (Yu& Hang 2008).
Porter’s notion of being “stuck-in-the-middle” is not always true because the success of businesses can pursue an incorporated low cost distinction strategy. However, an organization becomes stuck in the middle when their costs are too high to compete with the low cost leader. As well as, when their product and services aren’t well-known enough to compete with differentiator. Part B 1. Corporate strategy is related to the other organizational strategies because growth and success is very essential in any organization.
Contingent upon how far reaching you need this arrangement to be, it can be an extremely expensive choice. Picking whether to compose a marketable strategy or have one composed is a decision of you, as the entrepreneur, can make. While there are a few disadvantages to a strategy for success, you may have no real option except to have one over the long haul. In the financial that you can back toward oneself the business, this gets to be to a lesser degree a need, yet not very many individuals can do it. Energetic organizations flourish to some extent in light of the fact that workers have the permit and chance to offer inventive info.
First of all, it’s an access to attract talents who want to work hard to gain the profit rather than take a salary as an employee. Secondly, it’s a good way to obtain expansion capital. Thirdly, franchising can help companies minimize the growth risk, which means a franchising company could put relatively little money into adding a location. Then, according to Startups Team (2003), franchising can also provide company a well-known brand which can lead to a big
Due to the objectives of exhibiting at trade shows mentioned earlier in the last chapter (see also 2.1.5), qualitative goals such as increasing product awareness, enhancing customer relationships, etc. can be difficult to evaluate. Nevertheless, trade fairs, as a communication instrument, have to compete with other marketing tools to win the company’s budget. If the effectiveness of trade fair participation cannot be measured, while other tools are measurable by some indicators, the exhibiting team may find it difficult to obtain the resources essential for participation and trade fairs can be defined as a low efficient instrument even though this may not be the case. Moreover, measuring success is not only necessary for gaining a marketing budget but also for the selection of multiple exhibitions.
Also due to the small land size, if there are some problems between customers and SMEs, Singapore SMEs arrange necessary changes faster to the customers. Another characteristic is that Singapore government’s support to SMEs. Too low support from government will not make motivations to build new SMEs. However, too much support from the government will make low economic independence to the SMEs. • What do SMEs mean to Singapore economy?
Main section Analysis The first analysis which was made for the project is SWOT analysis (Figure 1). It gave us the opportunity to find out which strengths and weaknesses Coss Company has and which opportunities and threats it can face. Moreover, the SWOT helps to find the right way in planning our steps and future strategy. We found out that they have a lot of advantages which not all the companies could have. For example, the Coss Company is small so it can easily make good relationship with its customers.
Part one: Competitive advantage: Competitive advantage is defined as the benefit that any organizations will gain in order to be better and unique than their competitors. This would benefit them by increasing their sales as well as gets more consumers than its rivals. Competitive advantage is one of an important aspect that every organization must use, because it provides the company with an edge above its competitors and a capability to create bigger value to the organization and its shareholder. Therefore, it is very difficult to copy the sustainable competitive advantage from the rivals because it is unique to them. Consequently, competitive advantage could be measured by using two strategies.
This process plays an important role in increasing the productivity by innovation and especially in redistribution of income and wealth by promoting the social welfare. Sufficient knowledge is one of the major factors in entrepreneurship growth. Different types of problems are also attached with Entrepreneurs like, lake of proper market knowledge and importance of key people which involved in this entrepreneurial process. The gathering process of such type of knowledge is not easy and cheap task. For this purpose effective communication must be established between sellers, buyers and other stake holders.