Diversification in Emergent Markets: Possibility for Transferring Technological Core Competencies

2014 ◽  
Vol 3 (2) ◽  
pp. 187-194
Author(s):  
Sven Seidenstricker ◽  
Christian Linder ◽  
Michael Schmitz

The company (name disguised) started out as a coppersmith workshop over 100 years ago and is today a leader in the technology of plant engineering and construction for the beverage industries. However, competition has increased heavily in this area over the last decade, while advances in knowledge have correspondingly declined, particularly in producing technology systems, and there is now a discernible knowledge gap. In addressing this situation, the company has recognized that the business must find other markets and its technology core competencies, as well as the existing manufacturing facilities, should be a part of the evolving business. The diversification should be based on new products as well as focused on emergent markets. The case points out the need to identify current core competencies and assess relevant fields of potential diversification from an outside-in perspective as a realization of the first steps in establishing a completely new business portfolio in the long run.

2005 ◽  
pp. 133-143 ◽  
Author(s):  
E. Balashova

The method of analyzing and modeling cyclical fluctuations of economy initiated by F. Kydland and E. Prescott - the 2004 Nobel Prize winners in Economics - is considered in the article. They proposed a new business cycle theory integrating the theory of long-run economic growth as well as the microeconomic theory of consumers and firms behavior. Simple version of general dynamic and stochastic macroeconomic model is described. The given approach which was formulated in their fundamental work "Time to Build and Aggregate Fluctuations" (1982) gave rise to an extensive research program and is still used as a basic instrument for investigating cyclical processes in economy nowadays.


1977 ◽  
Vol 44 (1) ◽  
pp. 71-75
Author(s):  
Earl W. Wims

Price incentives have traditionally been utilized to influence consumers to purchase new produces with the long-run objective being repeated purchase. An analysis of triers of new products suggests that this strategy is questionable and further study should be undertaken. Cognitive dissonance theory may account for the behavior resulting from a change in attitude induced by various levels of incentive.


2018 ◽  
Vol 22 (06) ◽  
pp. 1850046
Author(s):  
ALEXANDER BREM ◽  
ROBERT ELSNER

Make-or-buy decisions on technology-intensive components represent a key task in the management of technologies. Against this background, this paper presents an analysis of a technology company which gave key insights into their make-or-buy decisions on the strategic and operative level. The results show two kinds of make-or-buy decisions, called type 1 and type 2. In contrast to type 1 make-or-buy decisions whose scope is mostly limited to the production and quality function, type 2 decisions are strongly linked to engineering and R&D activities. Moreover, two new decision matrices are introduced: a ‘product/subsystem aggregation’ scheme and a ‘make-or-buy controlling’ matrix. In an environment in which companies move towards greater use of outsourcing, the framework ensures that company strategy and core competencies are followed in the long run despite short-range deviations of make-or-buy analysis results. These findings might be helpful and suitable to other manufacturing companies that deal with technology-intensive components on a strategic and operative level.


2020 ◽  
Vol 4 (2) ◽  
pp. 11-23
Author(s):  
Violeta Domanović ◽  
Jasmina Bogićević ◽  
Bojan Krstić

Contemporary business environment imposes new business rules. The maximization of profit and shareholder value cannot be the only aim of an enterprise. Instead, enterprises are forced to maximize value of all stakeholders in order to survive in the long run. The issue of sustainability has become of crucial significance, and especially measurement and reporting on sustainability, as well as, its effects on financial performances, as still dominant ones in the contemporary business performance measurement models. Hence, the subject of the research is the enterprise sustainability in the contemporary business environment. The aim of the research is to stress the role and the significance of the sustainability in the process of improving the enterprise efficiency. The research results show that the enterprise sustainability has the positive implications on the business performances in the long run, as well as on the welfare of all stakeholders. In order to be more transparent, it is desirable for enterprises to create the sustainability report, in the integration with the traditional business report, which would give the complete overview of enterprise efficiency.


Author(s):  
Tobias Kollmann

The rapid growth of Internet technologies induced a structural change in both social and economic spheres. Digital channels have become an integral part of daily life, and their influence on the transfer of information has become ubiquitous. An entirely new business dimension that may be referred to as the Net economy has emerged. Internet-based e-ventures that are operating at this electronic trade level are based on innovative and promising online business models (Kollmann, 2006). But also traditional enterprises that are operating at the physical trade level (real economy) increasingly utilize digital channels to improve their business processes and to reach new customer segments. With the Internet, the cooperation between enterprises reached a new level of quality. The wide, open, and cost-effective infrastructure allows a simple, fast exchange of data and thus a synchronization of business processes over large distances. Particularly for e-ventures introducing their new business ideas, online cooperation is a promising strategy as it enables the partners to create more attractive product offers and represents a basis for more efficiently and effectively communicating and distributing their product offers (Kollmann, 2004; Volkmann & Tokarski, 2006). Online cooperation, however, does not incorporate off-line channels such as print media, stores, or sales forces. For the combined management of online and offline channels, cooperation can be expected to hold an outstanding potential. Partnering with companies from the Net economy may help traditional enterprises to reach new market segments without extending themselves beyond their core competencies—and vice versa. In this context, cross-channel cooperation can be defined as the collaborative integration of online and offline business models aiming at attaining positive synergetic effects for the involved partners by a complement of competencies. (Kollmann & Häsel, 2006, p. 3) Cross-channel cooperation can be regarded a new management task that is worthwhile to be examined in more detail. Although researchers have broadly covered the area of online cooperation, a comprehensive study on cross-channel cooperation has not been undertaken up to now. Particularly the question arises, which cooperation forms represent feasible strategies for both e-ventures and traditional enterprises. Besides its contribution to literature, this article is intended to assist practitioners in evaluating the benefits of crosschannel cooperation for their own businesses.


2018 ◽  
Vol 8 (3) ◽  
pp. 1-30
Author(s):  
Allan KK Chan ◽  
Caleb Huanyong Chen ◽  
Long Zhao

Subject area E-Business; Corporate Strategy; Strategic Management; Operation Management. Study level/applicability Senior undergraduate; MBA; EMBA. Case overview After development for 10 years, JD was now China’s second largest business-to-customer (B2C) e-retailer and the largest in self-operated sector. It was September 2015 when Liu Qiangdong was deciding whether to persist with JD’s self-operated model and the heavy investment in the self-built logistics system. JD’s business model had been functioning well. However, as JD grew bigger and bigger, it became too expensive to expand its logistics system. JD had not made a profit since it raised funds from investors. Liu had to come up with a good proposal before the next monthly meeting to convince them that JD would finally overtake its biggest rival, Alibaba which ran on a different business model. In addition, JD was exploiting the rural and the global markets, as well as a new business in internet finance. Facing challenges and dilemmas, should JD persist with its model? How could Liu align short-term profitability with long-run development? How could JD overcome attacks from Alibaba and other competitors? Expected learning outcomes This case is appropriate for courses in e-business and strategy, particularly those with a strong focus on doing e-business in emerging markets (e.g. China). After studying the case, students should be able to: understand the e-commerce market in China; understand business models and key strategies of e-retailers; identify and analyse the pros and cons of the self-operated business model and self-built logistics system in e-commerce; learn how to evaluate performance, strategies and business models of e-commerce companies; and extract key trends in the market and compare different strategies. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code: CSS 11: Strategy.


Author(s):  
Niels Peter Thomas

Booksellers have always been vital to the publishing mix, making or breaking books’ success, but bookselling is now very much in transition. Coming from a stable system of wholesale and retail, we have seen the rise of chain bookstores, followed by the creation of the world’s largest and most powerful bookshop—Amazon.com. Entirely new business models for all book formats have emerged in the last decade, as well as new products and services consisting of books and related media. Bookselling remains in many countries a highly regulated business, but will see further change due to dependencies between the different book business models, technological innovation, the continuing competition with related industries, and a changing demographics of book buyers.


2012 ◽  
Vol 60 (3) ◽  
pp. 3_40-3_43
Author(s):  
Hiroo UTSUMI ◽  
Takamasa SUZUKI ◽  
Makoto IMAEDA

2020 ◽  
Author(s):  
Ilja Arefjevs ◽  
◽  
Aivars Spilbergs ◽  
Andris Natrins ◽  
Atis Verdenhofs ◽  
...  

The development of information and communication technologies (ICT) has a significant impact on the business model of companies operating in the financial sector. Digital transformation leads to changing existing business model rapidly, as well as necessity of developing new processes specifically related to the use of ICT in business processes, development of new products and updating existing ones. At present, changes in the demand for ICT related processes in financial sector are observed both through the development of different technologies and their applications core or ancillary processes (e.g. innovations in payment systems including crypto currencies, blockchain-assisted smart contract, credit markets and insurance including peer-to-peer lending). Based on the opportunities offered by ICT, new business models need to be developed in the financial sector to transform these capabilities into new products and services that respond to changing customer demand. The aim of research to investigate the changes taking place in financial sector in the light of developments in ICT for acquisition of necessary competencies. Research methodology includes systematic review of scientific literature, analysis of selected financial sector statistics, semi-structured industry expert interviews and statistics analysis. The empirical study is limited to the financial sector of Latvia. Although due to the global nature of the financial sector the research findings could be applied internationally.


2018 ◽  
Vol 2 ◽  
pp. 12-22
Author(s):  
Astri Rumondang

FinTech as a technology-based financial service, generally opens opportunities for increased efficiency in creating new business, better risk management and ease of transactions and trading activities. The limited access to capital resources (particularly banking) and with many SMEs that are unable to obtain financial services, is utilized by FinTech (P2P lending) practicioners as a good business opportunity at this moment. Fintech P2P Lending is considered able to overcome the problems of Small and Medium Enterprises (SME) and become one of the captial solution and empowerment strategy for SME in the future. This is because it enables small business owners or SME to get their capital in a shorter time with more simple terms and conditions, and also with the shorter loan period. It will be encouraging the development of SMEs, which will, in a long run, affect the equity level of welfare and the economy of the middle classes. As one of the majority Muslim countries, Indonesia should apply the FinTech-based financial transaction service pattern in accordance with the perspective in Islamic economics (Qirad). Where in lending the capital must be in accordance with the provisions set by God. In Qirad, it is stipulated that in lending the capital to others, then the lender has to know or understand what type of business will be done by the borrower.


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