Corporate Social Responsibility – Meaning, Need and its Evolution
The practice of CSR or Corporate Social Responsibility as a paradigm for firms and businesses to follow has evolved from its early days as a slogan that was considered trendy by some firms following it to the present day realities of the 21st century where it is no longer just fashionable but a business requirement […]
What is Brand Value ?
Branding has emerged as a corporate strategy in the recent times. All business organizations in all sectors have embraced the strategy of building their identity through their corporate brands besides the product related brands. Branding is definitely a marketing strategy. However the strategy of investing into brand building and managing the reputation of the corporate […]
International Sourcing is the Backbone of International Retailing
In the current times International Retailing industry is largely characterised by international sourcing. Though one might argue that for centuries countries have been engaged in sourcing materials from different countries, international sourcing as in the retail trade has grown and changed over a period of time. In the initial stages, the impetus for retailing of […]
Advertising Agencies – Meaning, its Role and Types of Agencies
“The work of a tailor is to collect the raw material, find matching threads, cut the cloth in desired shape, finally stitch the cloth and deliver it to the customer.” Advertising Agency is just like a tailor. It creates the ads, plans how, when and where it should be delivered and hands it over to […]
Finding and Keeping Customers in Multi Level Marketing (MLM)
Multi Level Marketing is a very interesting concept which makes selling very easy. The fact that anyone and everyone can join the Network marketing business and earn handsome income by selling the products without any investment or risk makes it the most attractive business proposition to people. MLM companies spend a lot of money and […]
Product leadership and growth of the Organization goes hand in hand. Organizations employ certain chosen core value propositions with their product or service and use the same as the key drivers to endear customers and forge relationships.
When they stand apart from the rest of the competition by way of superior value that they provide to their customer and continually strive to exceed their customer’s expectations over a period of time, they manage to create a niche in the market and establish brand leadership.
A look at the various markets and Organizations will tell you that no two Organizations follow the same recipe for success. Organizations like GE, Phillips, IBM, HP etc stand out as Organizations that have built operational excellence and drive their brand leadership through business model that supports their core value offering.
On the other hand, Organizations like Apple, Google and Microsoft etc are driven by individual leadership that promotes product innovation, experimentation and motivated by their creativity and leadership in the market.
Customer relationship as well as value proposition to the customer is driven through the individual leadership and innovation leadership.
In between these giant Organizations and individual leadership driven Companies, we have another set of Organizations that combine a bit of both the styles and are completely focused on establishing their leadership in the chosen product categories and retaining their leadership.
Organizations like 3M and J&J are the best examples of Organizations that are narrowly focused on achieving product leadership through product innovation. A study of the strategy that these Organizations have adopted makes for an interesting study for all management students.
These Organizations focus singularly on entire cycle of Product innovation, new product development and capturing the market segment using their new product introductions. Besides they do not wait for the life cycle of a particular product for milking revenues and profits.
Instead they choose to concentrate on introducing new products and drive product leadership in an ongoing basis. Thus they are far ahead of the competition at all times.
By the time the competition develops one product, these Organizations would have gone ahead and introduced several new products and versions, thus ensuring that the competition is left far behind and that they are always ahead in the market.
If you compare the organizations that are driven through organizational excellence and those that are driven through individual leadership and entrepreneurship, these third categories of product leader Organizations are built differently and accordingly their strategy and core competence is different too.
These Organizations are totally focused on R&D and product innovation. They tend to give importance to product development areas and into enhancing the supply chain efficiency to serve their markets.
The marketing focus is on creating visibility and availability of the product at all times and expanding their market share through aggressive selling to increase sales volumes.
However we do not mean that these Organizations neglect other aspects of Organizational development. They tend to be more sales and market driven with hardnosed marketing talent determining the sales strategy.
Range of new products and Product innovation as well as product quality drive the value proposition in the markets. Management style and systems tend to be target driven and concentrate on sales volumes.
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