scholarly journals Customer Value Creation for the Emerging Market Middle Class: Perspectives from Case Studies in India

2021 ◽  
Vol 14 (10) ◽  
pp. 455
Author(s):  
Rifat Sharmelly ◽  
Anton Klarin
Keyword(s):  
Emerging Markets ◽  
Organizational Performance ◽  
Value Creation ◽  
Value Chain ◽  
Customer Value ◽  
Emerging Market ◽  
Necessary Condition ◽  
Strategic Choices ◽  
Functional Value ◽  
Competitive Prices

This paper examines the customer value creation framework and discusses the design of the key elements for product development in emerging markets. A scientometric/bibliometric scoping literature review identifies a clear gap in the current research in studying prerequisites for customer value creation in emerging market contexts. Observing experiences of Daikin and Renault in the context of India, the purpose of this paper is to identify value creation strategic choices following which comprehensive customer value offerings in products and services can be successfully created by firms across the four facets of the framework in emerging markets. Value creation strategies include having a nuanced understanding of the latent contextual needs to offer localized high-quality products that embody distinct functional attributes that provide a functional value and being responsive to specific emotional needs and epistemic experiences of the target customers in product and service offerings to deliver a greater experiential value. Furthermore, the products should adopt a localized operational excellence strategy throughout the value chain to reduce costs for competitive price offerings in order to deliver superior cost value and develop brand image and equity strategy, thereby allowing for the provision of a greater symbolic value. Experiences of successful firms demonstrate the need for extensive local research into the emerging market followed by localization of production and development of a distribution network to be able to offer customized products at competitive prices whilst maintaining the brand value. We thus extend the customer value creation framework by introducing localization as a necessary condition for successful organizational performance in emerging markets.

scholarly journals Understanding the Process of Transitioning to Customer Value Management

2006 ◽  
Vol 31 (2) ◽  
pp. 1-28 ◽  
Author(s):  
B Muthuraman ◽  
Anand Sen ◽  
Peeyush Gupta ◽  
D V R Seshadri ◽  
James A Narus
Keyword(s):  
Value Creation ◽  
Value Chain ◽  
Customer Value ◽  
Customer Relationships ◽  
Value Chains ◽  
Value Management ◽  
Business Markets ◽  
Value Sharing ◽  
Customer Value Management ◽  
The Way

Customer Value Management (CVM) has emerged as an important vehicle for customer retention in business markets. Supplier firms under increasing pressure from relentless competitive forces are seeking to retain and grow the share of business from profitable existing customers as a means of finding a way out of downward spiralling price pressures. While a lot has been written in academics about the importance of CVM, several gaps remain on understanding how a large company actually undertakes this journey. Crafting competitive value chains and focusing on streams of competition are also emerging as important agenda for supplier firms since, increasingly, the end customer is no longer willing to pay for inefficiencies in the value chains. In this context, the challenge for a supplier firm in business markets is no longer restricted to getting its own operations in order, but, additionally, it must ensure that multiple interfaces that exist across the entire value chain all the way until the end customer are streamlined so that the value chain is free of value drains and every meaningful opportunity to create value is exploited. In this paper, the authors present the experiences of the India-based Tata Steel in implementing CVM across 25 select customers. This has enabled it to successfully come out of the commodity trap that it found itself some four years ago. The paper begins with an overview of existing research in the area of CVM covering the important aspects of customer loyalty, customer relationships, trust as an antecedent for relationships, value as a cornerstone of business markets, and importance of the supplier firm focusing on the efficacy of the value chain of which it is a part. While one part of the challenge for a supplier firm is to find avenues to create and deliver unique value to its customer firms, an equally formidable challenge is to obtain equitable return for value delivered. This is where value sharing through integrative negotiations between the supplier and customer firms becomes central. The authors conclude that current understanding on value creation and value sharing is at a preliminary stage. This is the gap that the paper seeks to address based on the actual experience of the company in implementing CVM. This paper presents a framework for mapping the various ideas generated in the CVM implementation process and attempts to build a value sharing methodology based on the CVM journey of the company. It concludes with several challenges that the company has to grapple with for continued progress on its CVM journey. One of the important challenges is addressing value drains and discovering new value creation avenues along all the interfaces between the various firms constituting the value chain all the way until the end customer. The key learnings can be summarized as follows: Success of CVM has to start from the top management of both supplier and customer firms. The focal responsibility cannot be delegated. Firms planning to embark on the CVM journey must adapt the CVM process to their own specific situations while general lessons can be drawn from Tata Steel�s CVM implementation experience. Meaningful roles must be found for all key managers in both supplier and customer firms for success of CVM implementation. It is necessary to take stretch targets for the process to be attractive and worth the while for both the firms. At the same time, it is essential to manage the expectations of both firms: CVM is not a panacea or a magic bullet to solve all the problems of both the firms. The overall philosophy of both firms must be to seek to expand the ‘value pie,’ thus coming up with integrative decisions based on aligned data where both the firms ‘read off the same page’ of data.

scholarly journals The impact of characteristics of intra-organizational environment on entrepreneurial marketing intensity and performance in Egypt

2020 ◽  
Vol 12 (5) ◽  
pp. 621-642
Author(s):  
Abeer Mahrous ◽  
Mohamed Ashraf Genedy ◽  
Morris Kalliny
Keyword(s):  
Emerging Markets ◽  
Organizational Performance ◽  
Emerging Market ◽  
Planning Horizon ◽  
Organizational Environment ◽  
Content Type ◽  
Entrepreneurial Marketing ◽  
And Performance ◽  
Marketing Intensity ◽  
The Impact

Purpose The purpose of this paper is to contribute to the entrepreneurial marketing (EM) paradigm by empirically investigating the relationship between intra-organizational environment, EM intensity (EMI) and organizational performance in an emerging market context. Specifically, the paper identifies the elements of the intra-organizational environment that enhances EMI and also examines the impact of EMI on organizational performance. Design/methodology/approach The data were collected from large-sized companies in Egypt. Data were analyzed by using path analysis on Smart-PLS. Findings The findings suggest that the characteristics of the intra-organizational environment that support developing and increasing EMI in large-sized companies in emerging markets are cooperative competency, deep locus of planning and institutional support. Also, it was found that the long planning horizon hinders EMI. Finally, it was found that EMI is positively related to organizational performance and competitive advantage. Practical implications The study provides guidelines for managers of large-sized organizations, especially in emerging economies, on how to develop the intra-organizational environment to enhance EMI. Originality/value The study of EMI received little or no attention in previous research. Also, there is a paucity of empirical research on the impact of the intra-organizational environment on EMI and also on the impact of EMI on the organizational performance of large-sized companies in emerging markets. Therefore, the results of this research are a step toward filling these gaps.

Global Standards and Emerging Markets: The Institutional-Investment Value Chain and the CalPERS Investment Strategy

2005 ◽  
Vol 37 (11) ◽  
pp. 1955-1974 ◽  
Author(s):  
Tessa Hebb ◽  
Dariusz Wójcik
Keyword(s):  
Emerging Markets ◽  
Value Chain ◽  
Institutional Investors ◽  
Capital Investment ◽  
Emerging Market ◽  
Investment Strategy ◽  
Institutional Investment ◽  
Investment Value ◽  
Global Standards ◽  
Anglo American

Institutional investors, particularly pension funds, based in developed Anglo-American capital markets are increasingly investing in international markets, including emerging markets, in an effort to capitalize on the rapid growth rates of these markets. But investment in far-flung jurisdictions carries with it risk and uncertainty, particularly when the corporate standards of firms in emerging markets are below those found in these investors' home countries. In order to mitigate the risks posed by poor corporate standards of behaviour, institutional investors increasingly apply nonfinancial criteria not only to individual firms in emerging markets, but to the corporate practices of whole countries. Though countries and their regulatory regimes are central to external capital-investment decisions, we find convergence to global standards occurs when key actors in the investment value chain demand levels of corporate and social behavior greater than those currently consistent with countries' own regulatory frameworks. We test this hypothesis using the decision of the California Public Employees Retirement System to screen out several emerging-market countries from their investment portfolio on the basis of a variety of nonfinancial criteria.

Order of justice in queues of emerging markets

2020 ◽  
Vol 37 (6) ◽  
pp. 605-616
Author(s):  
Swagato Chatterjee
Keyword(s):  
Social Justice ◽  
Emerging Markets ◽  
Service Provider ◽  
Emerging Market ◽  
Social Systems ◽  
Service Evaluation ◽  
Necessary Condition ◽  
Content Type ◽  
Extant Literature ◽  
First Order

Purpose Extant literature on queuing has identified service queues as social systems where social justice is an important factor for service evaluation. First-order justice, defined as a first-come first-served (FCFS) process, has been found to be a necessary condition of social justice and positive evaluation. Second-order justice, defined as equal waiting time, has been found to be an additional factor which comes into play only when first-order justice is met. This paper aims to show that in the emerging market situation, the above definitions of justice and the order mentioned above does not work. Design/methodology/approach Instead of equal wait, the study has focused on equitable wait, i.e. waiting duration is in sync with the service needs. Three experiments have been performed to establish the hypotheses suggested. Findings FCFS is found not to be the necessary condition as it was in the extant literature and can be relaxed sometimes to get higher service evaluation by ensuring justice from the equitable wait. The study also portrays the interaction effects of the two types of social justice on service evaluation. Moreover, the impact of justice from equitable wait on service evaluations is found to be moderated by perceived personal connect of the service provider and the consumer, perceived importance of system and process and perceived ability of the service provider of capacity improvement and mediated by perceived control of service provider on providing the justice of equitable wait. Research limitations/implications The study contributes toward the understanding of social justice in service queues. It also contributes to the literature of attribution theory and consumer betrayal. Practical implications The study provides suggestions to retail managers in emerging markets to choose queue management strategies depending on the size of the retail shops and consumers’ expectations from them. Originality/value The study introduces the concept of justice from the equitable wait, which is original in the queuing literature to the best of the author’s knowledge. The study also finds a new order of justice in the emerging market scenario.

Executive Insights: Managing the Transnational Value Chain—Strategies for Firms from Emerging Markets

1997 ◽  
Vol 5 (3) ◽  
pp. 71-84 ◽  
Author(s):  
C. Samuel Craig ◽  
Susan P. Douglas
Keyword(s):  
Emerging Markets ◽  
Value Chain ◽  
First Generation ◽  
Low Cost ◽  
Emerging Market ◽  
Private Label ◽  
World Markets ◽  
Component Manufacturing ◽  
Generic Strategies ◽  
Generation Technology

To compete successfully in world markets, firms from emerging market and newly industrialized economies need to develop strategies to participate more broadly in the transnational value chain. More specifically, they need to move beyond cost-oriented commodity approaches that rely on low-cost labor and other resources to value-creating strategies that capture a greater share of the transnational value chain. This article presents six generic strategies appropriate for emerging market firms: low cost commodity, component manufacturing, private label manufacturing, low-cost leader, first generation technology, and specialized niche. The advantages and limitations of each of these strategies are discussed, as well as general guidelines for extending the firm's participation in the transnational value chain.

scholarly journals From the Host to the Home Country, the International Upgradation of EMNEs in Sustainability Industries—The Case of a Chinese PV Company

2019 ◽  
Vol 11 (19) ◽  
pp. 5269 ◽  
Author(s):  
Jun Jin ◽  
Zhengyi Zhang ◽  
Liying Wang
Keyword(s):  
Emerging Markets ◽  
Host Country ◽  
Value Chain ◽  
Multinational Enterprises ◽  
Home Country ◽  
Emerging Market ◽  
Internal Market ◽  
Market Mechanism ◽  
Trigger Time ◽  
Depth Analysis

With the internationalization of firms from emerging-markets, the upgradation along the global value chain of emerging-market multinational enterprises (EMNEs) has attracted the attention of academics and industries. However, the role of upgradation of EMNEs in a host country to the transition of EMNEs in the home country is ignored. This study explored how EMNEs from emerging-markets could upgrade their operations in their home countries driven by the transformation of subsidiaries in host countries. An in-depth analysis of Company S was conducted to elaborate on the resources and trigger time a firm needs to transform the function of a subsidiary in the host country, and the upgradation of the firm in the home country during the internationalization process. Research on the internationalization of Company S suggested that with the complementary capabilities and markets as the fundamental basic resources, the industrial crisis triggers the firm’s upgrading in the host country. In addition, the intrafirm (internal) market mechanism makes it possible to sustain the upgrading process without conflicts between subsidiaries. Moreover, synergies will develop through interactions with subsidiaries, owing to complementary capabilities and the internal market. The synergetic development promotes the transition of firms in the home country and emphasizes the complementarity of the manufacturing and engineering service. Finally, this study demonstrates the two-stage international upgrading process, in which the international upgrading of firms in the home country is driven by the development and transition of the subsidiary in the host country, which provides contributions to the internationalization upgrading strategy and process of firms from emerging-markets.

Wipro Consulting Services: Building an Effective Global Configuration in Business and IT Consulting Industry

2010 ◽  
Vol 14 (01) ◽  
pp. 1-30 ◽  
Author(s):  
Joseph Lampel ◽  
Ajay Bhalla ◽  
Kaivalya Vishnu
Keyword(s):  
Value Chain ◽  
Emerging Market ◽  
Strategic Choices ◽  
Consulting Services ◽  
Business Creation ◽  
Global Configuration ◽  
New Business ◽  
Global Player ◽  
Consulting Industry ◽  
Set Up

The Wipro Consulting Services (WCS) case charts the evolution of the consulting initiative within Wipro Technologies; the strategic choices the management made during this evolution and the challenges facing the firm once it consolidated the various consulting initiatives to set up Wipro Consulting Services in 2008. The case deals with several questions facing the leadership team, such as the competencies to develop to move up the value chain in delivering consulting services and the extent to which WCS should rely on the parent firm (Wipro) for its next phase of growth. The case seeks to deal with the issues of new business creation and growth in large organizations. It invites students to explore the domain of technology consulting, the delivery model firms pursue in this industry, and the challenges a firm with corporate centre in an emerging market faces when it seeks to establish itself as a global player. In particular, it also aims to open up discussion on the advantages, disadvantages, and challenges a firm encounters when encouraging new business initiatives while retaining tight co-ordination when this initiative enters growth phase.

Do cross-border acquisitions involving emerging market firms create value

2014 ◽  
Vol 52 (8) ◽  
pp. 1451-1473 ◽  
Author(s):  
P.C. Narayan ◽  
M. Thenmozhi
Keyword(s):  
Emerging Markets ◽  
Value Creation ◽  
Emerging Market ◽  
Operating Performance ◽  
Relative Size ◽  
Rank Test ◽  
Content Type ◽  
Cross Border ◽  
Emerging Market Firms ◽  
The Impact

Purpose – The purpose of this paper is to contribute to M&A literature by explicitly investigating whether cross-border acquisitions involving emerging markets, either as acquirers or as targets, create value and how is the performance outcome in such acquisitions impacted by deal-specific characteristics. Design/methodology/approach – This study uses industry-adjusted operating performance to measure acquisition gains, the Wilcoxon signed rank test to examine value creation potential and OLS regression to evaluate the impact of deal characteristics on acquisition gains. Findings – The authors find very pronounced value destruction when emerging market firms acquire targets in developed markets, the adverse outcome being further aggravated when the mode of acquisition is “tender offer” rather than a “negotiated deal”. On the other hand, when developed market firms acquire targets from emerging markets, there is an even chance of value creation, the outcome being favourably influenced by the pre-acquisition performance of the two firms, relative size of the target and cash (not stock-swap) as the mode of payment. Originality/value – The findings from this paper offer an important, statistically significant explanation on the value creation potential and the impact of deal characteristics on post-acquisition operating performance in cross-border acquisitions involving emerging market firms. This finding assumes immense significance, given the rapidly changing landscape of global M&A, witnessed through a continuous rise in the volume and value of cross-border acquisitions involving emerging market firms.

scholarly journals Customer Perceptions of Value: Case of Retail Banking

2012 ◽  
Vol 3 (1) ◽  
pp. 75-88 ◽  
Author(s):  
Neringa Ivanauskienė ◽  
Viltė Auruškevičienė ◽  
Vida Škudienė ◽  
Šarūnas Nedzinskas
Keyword(s):  
Value Creation ◽  
Customer Value ◽  
Banking Sector ◽  
Economic Recession ◽  
Retail Banking ◽  
Psychological Climate ◽  
Customer Perceptions ◽  
Functional Value ◽  
Study Results

Recently, a growing interest in relationship marketing approach attracted much attention of marketers to the customer value creation and delivery as the most important task of marketing strategy. The fact that in the period of economic recession, the retail banking sector customers are more intended to re-assess their relationship with financial organization made marketing experts focus on the investigation of the factors that create and increase customer value in new light. Value creation and delivering to the customer in financial markets has been viewed as a competitive priority and a key component of an organization’s long term success. The aim of the current research paper is to assess the factors of customer perceived value in the retail banking sector during the period of economic recession. The research method involved the survey conducted with 200 retail customers of commercial banks in Lithuania. In addition, this research specifically examines the perception of value in the transitional economy. The study results revealed that in the period of economic recession the dimensions of emotional (affective) value (i.e., the reliability and security of bank, good psychological climate when contacting with bank personnel) and functional value (i.e., the quality of service provision, the competence of contact personnel) are rated higher by customers.  Meanwhile, the factors of social value (i.e., the established long-term relationship, personal beliefs, social integration, the opinion and recommendations of relatives, acquaintances and/or friends) are rated lower.

Sign in / Sign up

Export Citation Format

Share Document