Many frightened national companies faced his rivals from the multinational company. This fear indeed had a basis. Multinational companies often came with the strategy that has been sharpened belasan or dozens of years, the good reputation that was difficult to be conquered, and human resources and the company's system trapped the world. This fear was quite necessary to maintain vigilance, but this fear might not be abundant also. Is it true that, these multinational giants had almost all the resources that were craved by the local company. However often they could not use their superiority maximally in the environment of developing countries.
Mentioned logistic efficiency. In developing countries like Indonesia that his traffic was not still making sense with the infrastructure that often under the standard, the system of logistic information that could predict the arrival of the consignment could not be in the calculation of the minute applied here. This not yet including the condition for the hinterland and the Indonesian island. The Indonesian market that was heterogeneous also caused difficulties for the market research method that was sharpened for developed countries. The number of the inhabitants's numbers lacked and was educated low made the message of the marketing must be adapted in accordance with the level of their education. In this context, the local players often has gotten this knowledge in a tacit manner, while the multinational players needed time to change the strategy and their paradigm. The player's local surplus and the lack of this multinational company ought to be utilised maximally by domestic companies.
The local companies necessarily also could make use of the distribution of the developing country market was based on results of the Tarun Khanna research and Krishna G. Palepu (both of them from Harvard Business School). According to them, the developing country market consisted of 4 stages: global, glocal, local, and bottom. The four layers of this market formed a pyramid with the global layer that had the number of consumers least located above and the layer bottom with the number of biggest consumers occupied the position was supervised.
The consumer who occupied the global market wanted the product with the attribute and the quality that were the same as the consumers in developed countries. They prepared paid more for these products. They were the buyers of high-quality things like the bag of Louis Vuitton or the Rolex watch that was original. Under the global market, we found the market glocal. Occupants of this market were still needing quality things high, but their willingness spent money a little lower compared to the consumer in the global level. They were the consumers who liked to spend the night in five-star hotels while carried notebook and the newest model mobile phone. After that, we found the occupants of the layer local that has been satisfied enough with local products with the price to be cheaper. And in the part was lowest, in bottom of the pyramid, was gotten by the consumer's class that only could buy cheapest products in the number as minimally as possible.
In the global segment, the multinational company indeed dominated. Rarely had the local company that could compete with them. In the meantime, the local companies most competed interpersonal they themselves in the level local. The two layers, global and local, created two Medan the different competition. For example for the drink industry of the package mineral water, Evian was competing with Perrier and Dasani in the global segment, while Aqua fought with Ades and The Total in the segment local.
How with in the layer glocal? Evidently, here the battle was most violent often happened. The multinational company that saw the small size of the number of occupants of the global segment, wanted did not want must cover down (but was not too low to protect brand positioning him). In the meantime, the local players who wanted to grow be forced glance at above so that could sell with the margin of the higher profit. The company's two kinds, without could be avoided again, met in the segment glocal. Whoever won? Of course his answer depended in how far this company could make use of competitive advantage him well relative against their competitors. Here, the good strategy and the innovation continually held the key.
In the middle he yelled the struggle for the market in the global level, glocal, and local, many companies that forgot the segment bottom. In fact like that had been discussed in several other articles in blog this (for example: served Piramida Terbawah and Pasien Time Terbang developed countries to Asia), in this market, the competition relatively light and promising the big potential for them who succeeded in working on him. Only, to serve this segment, the company must change the method thought and their approaches radically.
Local companies, therefore, in fact might not be frightened of competing with multinational companies. That most important was to choose Medan the competition and the strategy competed that was true. Of course, immediately should not compete in the market glocal and particularly global when your company was not yet strong in the layer local. (the certain Exception could be given for the local company that was enough the self-confidence to immediately playing in the stage glocal like J.Co or Excelso. ) got up your strength and made use of your knowledge would the local context to control the segment local and bottom before. After reaping the success there, just the segment lyrics glocal and began to be constructive the strength that was bigger for example by recruiting the graduate of the best tertiary institution and getting international certification like ISO. after that, you began to glance at the global market. However sebisa possibly, was expanding before to other developing countries before cleared to developed countries that demanded the quality of the product and the reputation of the higher make. Equally his matter with the mountain climbers, for the success
Companies from the developing country like Haier, Huawei, Lenovo, Wahaha Group (China); Infosys, Tata Group, Wipro (India); AmBev (Brazil), SABMiller (South Africa), Jollibee Foods (the Philippines), or S.A.C.I Falabella (Cile) was several examples of the company of the developing country that finally had succeeded in becoming the global player by undertaking the true climbing strategy. They could, your company definitely could Be also.
Mentioned logistic efficiency. In developing countries like Indonesia that his traffic was not still making sense with the infrastructure that often under the standard, the system of logistic information that could predict the arrival of the consignment could not be in the calculation of the minute applied here. This not yet including the condition for the hinterland and the Indonesian island. The Indonesian market that was heterogeneous also caused difficulties for the market research method that was sharpened for developed countries. The number of the inhabitants's numbers lacked and was educated low made the message of the marketing must be adapted in accordance with the level of their education. In this context, the local players often has gotten this knowledge in a tacit manner, while the multinational players needed time to change the strategy and their paradigm. The player's local surplus and the lack of this multinational company ought to be utilised maximally by domestic companies.
The local companies necessarily also could make use of the distribution of the developing country market was based on results of the Tarun Khanna research and Krishna G. Palepu (both of them from Harvard Business School). According to them, the developing country market consisted of 4 stages: global, glocal, local, and bottom. The four layers of this market formed a pyramid with the global layer that had the number of consumers least located above and the layer bottom with the number of biggest consumers occupied the position was supervised.
The consumer who occupied the global market wanted the product with the attribute and the quality that were the same as the consumers in developed countries. They prepared paid more for these products. They were the buyers of high-quality things like the bag of Louis Vuitton or the Rolex watch that was original. Under the global market, we found the market glocal. Occupants of this market were still needing quality things high, but their willingness spent money a little lower compared to the consumer in the global level. They were the consumers who liked to spend the night in five-star hotels while carried notebook and the newest model mobile phone. After that, we found the occupants of the layer local that has been satisfied enough with local products with the price to be cheaper. And in the part was lowest, in bottom of the pyramid, was gotten by the consumer's class that only could buy cheapest products in the number as minimally as possible.
In the global segment, the multinational company indeed dominated. Rarely had the local company that could compete with them. In the meantime, the local companies most competed interpersonal they themselves in the level local. The two layers, global and local, created two Medan the different competition. For example for the drink industry of the package mineral water, Evian was competing with Perrier and Dasani in the global segment, while Aqua fought with Ades and The Total in the segment local.
How with in the layer glocal? Evidently, here the battle was most violent often happened. The multinational company that saw the small size of the number of occupants of the global segment, wanted did not want must cover down (but was not too low to protect brand positioning him). In the meantime, the local players who wanted to grow be forced glance at above so that could sell with the margin of the higher profit. The company's two kinds, without could be avoided again, met in the segment glocal. Whoever won? Of course his answer depended in how far this company could make use of competitive advantage him well relative against their competitors. Here, the good strategy and the innovation continually held the key.
In the middle he yelled the struggle for the market in the global level, glocal, and local, many companies that forgot the segment bottom. In fact like that had been discussed in several other articles in blog this (for example: served Piramida Terbawah and Pasien Time Terbang developed countries to Asia), in this market, the competition relatively light and promising the big potential for them who succeeded in working on him. Only, to serve this segment, the company must change the method thought and their approaches radically.
Local companies, therefore, in fact might not be frightened of competing with multinational companies. That most important was to choose Medan the competition and the strategy competed that was true. Of course, immediately should not compete in the market glocal and particularly global when your company was not yet strong in the layer local. (the certain Exception could be given for the local company that was enough the self-confidence to immediately playing in the stage glocal like J.Co or Excelso. ) got up your strength and made use of your knowledge would the local context to control the segment local and bottom before. After reaping the success there, just the segment lyrics glocal and began to be constructive the strength that was bigger for example by recruiting the graduate of the best tertiary institution and getting international certification like ISO. after that, you began to glance at the global market. However sebisa possibly, was expanding before to other developing countries before cleared to developed countries that demanded the quality of the product and the reputation of the higher make. Equally his matter with the mountain climbers, for the success
Companies from the developing country like Haier, Huawei, Lenovo, Wahaha Group (China); Infosys, Tata Group, Wipro (India); AmBev (Brazil), SABMiller (South Africa), Jollibee Foods (the Philippines), or S.A.C.I Falabella (Cile) was several examples of the company of the developing country that finally had succeeded in becoming the global player by undertaking the true climbing strategy. They could, your company definitely could Be also.
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