Limitations & Disadvantages of Decision Support Systems
Limitations of Decision Support Systems Decision support systems have been incorporated into businesses to support human intelligence for years. However, these systems are not perfect. Although DSSs stop a decision maker from promoting a bias, they simply aid in decision making by offering useful insights into easily consumable bites. The idea is to present all […]
Tips for Writing Effective Problem and Goals Statement
Although the Six Sigma process has tried to make the process of developing problem and goal statements into a science, however in reality it still remains an art. This combined with the fact that goal and problem statements go a long way into the execution of the project make it important to understand what are […]
Importance of Quality Management
“Quality management” ensures superior quality products and services. Quality of a product can be measured in terms of performance, reliability and durability. Quality is a crucial parameter which differentiates an organization from its competitors. Quality management tools ensure changes in the systems and processes which eventually result in superior quality products and services. Quality management […]
Asset Management and Budgetary Control
One of the major financial functions is the management of fixed assets. Asset management module primarily maintains asset register, which provides information about asset related transactions. Asset Management thus helps in keeping track of fixed assets, handling fixed asset depreciation for fiscal reporting and revaluation of asset. Budgetary control (BC) module is another important finance […]
Role of Governments in International Businesses
The Need to Encourage Foreign Investment The previous articles have discussed how international businesses need supporting ecosystems and business friendly policies if they are to succeed in emerging markets. Of particular importance is the role of governments in deciding whether they would allow international businesses to setup their operations and encourage them to grow and […]
As more and more international retailers make a beeline for emerging markets like India, China, Nigeria, Mexico, and other markets, it is important for these retailers to embrace the chaos and duality that is inherent to these markets.
For instance, in India, more than 95% of the retail market is dominated by Kirana stores or what are called as “mom and pop” stores in the United States. Similarly, in Nigeria and Mexico, the retail space is characterized by the coexistence of small retailers alongside big multinationals like Wal-Mart.
The phrase “Oxcart to Wal-Mart” sums up the situation in many emerging markets where the prevalence of earlier century ways of doing business along with the 21st century business models is a way of life. In this situation, it would be better for international retailers like Wal-Mart to segment and conquer wherein they would have to pick the segments that they would like to target and then market to those segments accordingly. The data for segmentation can come from the census figures and other statistics provided by market research firms.
As has been discussed briefly in previous articles, the key aspect of doing business in emerging markets is the management of the supply chain and the logistical and infrastructural issues that need to be tackled.
Many emerging markets do not have world-class ports, airports, and roads yet and hence, international retailers must devise appropriate strategies to address these challenges. This means that they would have to forego the logistical mechanisms that work in their native countries and instead, adapt to the local situation.
Coca-Cola in India prefers direct delivery in many countries but in Kenya, it uses a combination of last mile connectors who can navigate areas where there are no proper roads. Similarly, Unilever is another international business that uses the direct delivery method but in Indonesia, because of the presence of so many archipelagos, it often relies on third party transport companies to deliver its products. The implication of this is clear: adapt and devise local strategies wherever possible.
The source of competitive advantage in many emerging markets lies in the frontline staff and the execution of a point of sale strategy. Rather than price, quality, or brand image, the convenience of home delivery and a staff who knows people personally often make the difference for the small retailers.
International retailers can gain competitive advantage by use of technology that is superior to those used by the local retailers. By speeding up the point of sale process and by having adequate car parking and transport mechanism, international retailers can hope to tackle the local retailers on their home turf.
Since technology needs money to establish, the international retailers with their deep pockets can ensure that by use of software and hardware that is cutting edge, they gain competitive advantage.
Finally, the challenge of local familiarity can be met by hiring staff that are adept at western selling practices but at the same time are conversant and comfortable with the local mores.
Your email address will not be published. Required fields are marked *
Cross Border Mergers and Acquisitions and Some Recent Trends in this Field
February 12, 2025
