Wild Wild West

Once again, my post elaborates the reality of the wild side of Globalisation and the unethical business happening in the Asian countries due to the Price competition among its products with their competitive nations. The small scale industries in particular are the victims under such Global business solution models where the buying giants in the west are getting more precise and Sharp in attaining their Economies of Scale.

Rather saying this as the competitive world, I would say this as the intelligent world where the entire business is cornered only in terms of competitive prices among the producers and the rest of the business story is nullified. For example, QUALITY was the main success factor in the export business since 2005 where the Price factor comes next to the negotiation of Quality and Cycle time of Production. But the things had changed all in a moment and now arises the Price war between an Exporter in Asia and an Importer in the West. Due to the economic and Political policies among the leading nations in their GDPs, the asian manufacturers are in the game of death by fighting for the survival.

The businesses whose main focus was on quality once, now had shifted towards Price. But then if we analyse, this situation prevails only in Asia but nowhere in the world’s production houses. In the Europe and in the US markets, the business focus is still towards its Business Values and Quality and Differentiation of Products. The game has been changed in the other part of the world.

To tell you the story “ The business management books on [Competition management and gaining Competitive Advantage ] is proving useless to apply it to the asian markets due to the different ball game in the Export market and it s purpose is satisfied to the rest of the markets in the world.

The United Nations having a power to eradicate/levy the preferential agreements creates different market structures and new potential competitors in the world. It is not by letting them to win but making the others to lose. When the buying nations has the unity towards creating the GSPs(Generalized System of Preferences) codes towards the Producing nations, the competition being created among those producing nations obviously dislodges the unity among its peers politically and economically. It has turned out to the like the game of ‘Survival of the Fittest’. And it is practically impossible for these Exporting Asian Nations to unite as a single body in terms of preferential treatments and regimes.

As a result, the smartest supplier who once ruled the market with genuine products has to struggle to survive in the market due to such deliberate policies and agreements leading to the struggles in the International markets. Even though the enhancement of Product and R & D are becoming the tool to fight this issue over export business, the results weren’t convincing enough to sustain the future developments in the competition. Therefore a nation whose 55% of its GDP relying over the Exports goods has plummeted since last year in the International Market and now it is fighting to keep its product cheaper and not emphasizing Quality and Research.
This is not the end of the story. If such kind of International Practices prolongs, there will be the generation of new potential threats from the new entities who goal would be destroying the market’s game and rules for their own survival. Its been like in the world of forests by defending oneself against its cannibalistic neighbors. Once the united neighboring nations have now become the dislodged piece of a threat. This squeal is not just from the author but from everyone who is in the business experiencing the hard times which they are not responsible for the cause. Well, it would take sometime to gather unity prior to another major change in the market, an ethical design of systems are needed to carry the world forward with evenly distributed rights and claims towards the uncertainties.



Picture at the top - Extracted from the website of St. George's Student Union

Beginning of a New Game in the International Trade and Supply:

Serving the Market: A New Epitome of Sustaining the Effects of Globalisation for the mid size companies

Life is getting easier as far as the consumers’ buying comforts are concerned. The competition among the brands and their Product Placements within the price competition may shake the consumers with a million of choices but then, he/she has the best choice at the end of the day due to the visibility of the so called Market Updates. Making the consumers to win in the commercial market is the contemporary saga for the brands and thus gaining the Brand Identity and Brand Equity. Well, what kind of the risks that a brand has to take and what are all their back end effects of making their customers to win at the shop floor?

Shouldn’t that be a toughest stance for the Brand Managers and the Product Managers who help the business to reach the maximum height coping with their annual targets? Indeed yes, it is absolutely one of the balancing acts that he has to perform. A perfect metaphor which I can use to name those executives would be “Skywalkers”. They not only have to balance the act, they have to foresee the wind flow (i.e) the markets’ future for the next business year. Apart from the “Skywalkers” efforts to bridge the gap between the customer needs and the company’s marketing tools, there is something really missing as far as the sustainable future is concerned.

The Market research reports and the Consumer Behavior Analysis studies have become a tiny tool demoting its significance against the race with the Market fluctuation problems. Therefore an unlimited offering in the market and along with that, a strategic platform between the buyer and the supplier creating some uncontested market place for the future would be an ideal relief for the results over Market Development. Apart from the Brand Identity, the innovation management tool will relieve the customers’ product mix and will have a new (brand new) brand experience over their value added product.

I remember the saying “ One’s legacy is justified not during the good times but during the time of difficulty and demotion”. So the demand of new products will be increasing against the ‘Run and Chase’ game during the time of economic downturn. Well, the investment for the new Products are the hardest decision making process. But then the effect would reduce the lapse between “Product Development” and “Innovation Management” and thereby creating a uncontested market place for the present runners in the market.

Being a strategic Supplier is not sufficient in this present day markets. No matter where we belong to, either a service industry or a Telecom industry and even a fashion industry, there are aplenty of space which are yet to be served between the Customers and Suppliers. I am not talking about the brokers but only about the suppliers. Supplying Just in Time is just a mere tradition. Valuable supply and the Value innovation are the much needed combo in order to serve one’s customer to their deep values. This is the aga, where on has to concentrate about Vertical Sourcing as a tool for success but not just Vertical Production. Vertical Integration in the Value chain has its own charm in the business values and It’s the right time to discuss further deep into it. Meet you in a while.

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