New Product Development for Marketing Essay
Competition used to always be between companies of same size and same capabilities, today the case has changed and we can see competition between what is considered small and big businesses and contact form different countries. The world is more globalized and flatter and massive numbers of organizations have similar resources and mean of production. In respect to Jones Friedman you will find reason behind a flatter community and lowered gap among firms in various countries (Insourcing, outsourcing, away shoring and supply-chain).
The idea of triple convergence is a great addition reason for world flattener, the first convergence can be when all ten flatteners work together to create a flatter, global playing discipline; the second affluence adopts fresh habits like moving via vertical to horizontal imply of creating benefit, in other words we should understand the means of new technology in house in a organization before the result reach the consumers, and lastly the third concurrence is the introduction of new people and tools in the production process and causes more competition and interconnection between people. Out of clutter find simplicity, via discord find harmony and the middle of difficulty lays opportunity (Einstein).
Every entrepreneurs and CEOs happen to be reacting to the changes in the community in recent years and the flattening worldwide; it is very clear that small and big companies are running after economic progress but can they do it without change in their core ideology? What must firms do to stay in business in a toned world? There exists evidence today that all sort of firms and big companies are nearly using the same technologies, marketplaces and analysis innovations; this would lead to a contest between small , local company and other international firms and competition between countries.
What is unique regarding the toned world is definitely the degree that individuals, or perhaps small groupings, can now take action and compete globally (Friedman 2005 l 447). Innovation comes from creating an environment that encourages individuals to stretch all their imagination and turn into the ideas into completed goods and services. These types of characteristics (technology, innovation and market studies) will allow the small firms to do something big by simply implementing what you are imagining. The best example of a local or perhaps regional firm and competing with multinational firms is Aramex; the first package delivery service in the Arab world.
The moment Fadi Ghandour the president and current CEO of Aramex started the company, there was clearly only one services parcel delivery operating in the Middle East and it was DHL. How Aramex became a competitor to DHL? That they ecide to approach American companies like FedEx and offer them to become their delivery service in the Middle East to be able to beat DHL because Aramex knows the Arab market segments more than Air-borne express and so they started the delivery with all the partnership of small delivery firms via Egypt to turkey and Saudi Arabia and lately to Iran and Pakistan, in order a result Aramex created its very own network.
In addition Aramex followed Airborne program (computerized traffic monitoring and tracing system, single language, and quality standards); as a result Aramex dominated the parcel delivery service in the Arab universe. When DHL acquired Air-borne and Aramex was remaining alone without having system to use, so they will developed new one by using Jordanian software and professional engineers and depend on the web and current tracking and tracing. Right now the small company step up to replace Airborne due to an effective global network, by focusing on a specific market and serving that with top quality service with lower time and costs.
Right now Aramex is recognized as a flat firm, according to Ghandour every single worker inside the company contains a computer with e-mail and internet access so he can really know what is going in without various reports via senior managers. He as well said: I was big locally and small internationally and I turned that. Aramex has benefited in the flattening of the world by leveling the monetary field and breaking control to obstacles, any company in the world can contend globally.
Oligopoly market utilized to show us an industry with a major firm and others described as fans and generally considered tiny firms; the dominant firm can arranged a low value and generate it difficult to small organizations to contend and sometimes pressure them to leave the market. Once world be flat in respect to Friedman, small firms can contend with bigger ones and the competition is not only small against small , big companies against each others. The main reasons behind the reduction with the gap between small and big firms are: technology, advancement, Insourcing, and market niche. These kinds of will help little firms to lessen costs and increase quality and prevent big firms from enjoying financial systems of range and placing barriers to entry; the example of Aramex is a great inspirational concluding thought; among a small Arabic company that made it big in the world platform: