Costs in Project Management – Costs associated with the Projects
Types of Costs The following are the costs associated with the projects. Direct costs Any costs that are directly attributable to the work on the project. These can include the salaries paid to the resources, the billing rate of the resources and costs of the software and hardware that are used for building the website […]
Behavioural Models for Project Managers
There are several models of behaviour that the project manager can draw upon in his or her work. These include Maslow’s need hierarchy theory, Herzberg’s Hygiene theory and McGregor’s theory X and theory Y as applied to project management. All these behavioural models point to the ability of the project manager to motivate the people […]
How Big Data and Algorithms along with Platform Capitalism Rule Our World
The Elements of the Digital Economy If you have ever transacted on an eCommerce site or have used your Smartphone or Mobile for commercial purposes as well as have taken a ride in the digital aggregator cab services such as Uber or have ever used Mobile Wallets and other forms of digital payments, chances are […]
Evaluation and Selection of ERP Packages
Evaluation and selection of ERP package is an essential criterion for successful ERP implementation. Quality of selection will have a long term impact on the processes of the organization. It is also not easy to switch to another product with concomitant scale of investment and complexities. This evaluation and selection process should be properly directed […]
Maintenance Policy and Repair – Need and its Importance
Introduction Plant and machinery in the initial days always perform to their fullest capacity but as time goes with regular wear and tear, this becomes increasingly difficult. If proper and regular maintenance is undertaken than production capacity can be maintained at a more or less same level. Maintenance also requires replacement decisions. Replacement is a […]
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.
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Cross Border Mergers and Acquisitions and Some Recent Trends in this Field
February 12, 2025
