To Korea and Beyond – Lessons of Doing Business in Korea and the Creation of an Unlikely Friendship

PREFACE

In 2004 I was looking to establish a business that would focus on the construction and development industry. At the time I was involved with a land and building Development Company that was punching far over its weight in the industry relative to the size of the operation vs. the size and scope of the projects we were successfully developing. This scenario created a double-edge sword, which offered both opportunity and exhaustion.

It was during one of the ‘exhaustion’ periods that I began looking to create a business that would both capitalize on existing knowledge within the construction and development industry, yet afford relative freedom to manipulate my environment and destiny. To that end my quest for that Holy Grail (I stress ‘quest’ and not success of) has led me indirectly to Korea, a country to which I have formed an indelible bond.

Throughout my tenure doing business in Korea, I have come to admire their fascinating history, their courageous and warm people and their surprising entrepreneurial spirit. As you may come to learn through these humble experiences, undertaking business in Korea is not at all what you may think and in some ways (as the saying goes), it is an enigma wrapped in a dichotomy, which regularly offers many surprises, challenges and opportunities.

To appreciate how it came that our little company consummated a lucrative agreement with a solid Korean manufacturing company (when we really had no right being in the game and truthfully had very little experience internationally), is a testament to both parties perseverance, including our high level of advanced preparation and research in combination with the Koreans entrepreneurial spirit and ability to recognize opportunities outside their immediate world.

During the year of 2004 I had reconnected with a friend and through various conversations that followed, we discovered a common desire to utilize collective knowledge in our given industry to start a business. Of course, as these serendipitous connections typically go, the timing appeared right for each of us so we began to seriously pursue the idea.

Throughout this process we explored multiple options, which eventually confirmed our initial instincts regarding which direction to follow. It was about this time that a conversation during an unrelated meeting brought about our first exposure to Asia and more specifically Korea.

While researching a variety of opportunities it was determined we would focus on developing a business, which would import and sell specific building and construction related products. Eventually we settled on Manufactured Stone & Brick Veneers, at the time a multi-billion-dollar per year industry. We felt certain this would be a product we could build a solid business on, so off we went in search of securing a top quality manufacturer. Accordingly, to assist in our quest we armed ourselves with what we felt was practical requirements established during the completion of our business plan. The following are some examples; we required a product that would provide key stone pricing or above average margins at the very least; we required exclusivity on the product for North America; we required ownership of the name and marketing; and we required that manufacturing is ISO certified. Simple request right? Oh how naive we were!

Well, as it turned out, on our way to the ‘reality-check-in-line’ we discovered there really weren’t any products available within North America that afforded us exclusivity or, that would allow a substantial margin or, that we could own the name for within Canada. Ultimately, if we truly wished to follow this path it was crystal clear we were not going to do it through a quality manufactured rock company here in North America.

Given this new reality, and with no shortage of reluctance or intrepid anticipation we turned our attention to Asia. It was about this time that the conversation (as noted above) pointed us directly to Korea, more specifically to a small manufacturing company in the southern port city of Busan, South Korea, a city of some 4 million residents and geographically located within the South Eastern edge of the Korean Peninsula.

The introduction to this small, indiscreet, manufacturing company proved to be the perfect solution to our business needs and set in place a lifelong connection to a country I have become extremely fond of.

In future articles I will expresses in vivid detail our modest growth as an international company and expand on our trials, tribulations and lessons learned while exploring the human, political and entrepreneurial side of this fascinating country.

Connect with me and you will experience a truly unfiltered look, warts and all, to the birth of an international business. Through this series of articles you will learn;

1. The enormous value of international diplomacy.
2. The importance of politics when dealing with a foreign country.
3. How to work effectively with Foreign Trade Offices and Government Embassy’s.
4. The art of Negotiating through interpreters.
5. Importing your product, how to protect yourself.
6. Setting up your business and corporation.
7. Who can you trust! the short answer is NO ONE so understand the legal.
8. Does you personality matter?

In the meantime, if you or your company are engaged in doing business internationally or, if you are looking at taking your first careful steps to expand beyond your borders, follow my blog or contact me if you feel I can assist you in any way.

‘A journey of a thousand miles begins with one simple step.’
– A Korean Proverb

Article Source: http://EzineArticles.com/?expert=Dale_Galbraith

What Model ATM is Right For My Business?

Which ATM is the best model for your business? Small retail outlets and convenience stores have become major sites for the installation of ATMs. The prime motivation to install a machine is it allows for consumers to purchase items in the store without the need or concern about carrying cash. The convenience store operator must be ready to accept electronic card payments for the products they sell.

Convenience store owners must install ATM machines in this economic era in order to remain competitive with grocery store and other large chain stores. Consumers are often caught with insufficient funds to cover their purchases. Additionally, as a business owner, there must be a provision for those customers who want to make impulse purchases.

Today, there are many makers of ATM machines for location in a retail store. Transaction fees calculated as a percentage of the withdrawal are split between the financial institution that set up the ATM and the store owner providing space for the ATM.

Many of today’s ATMs are networked. They are capable of executing transactions for customers of any financial institution that is a member of the appropriate interbank network. Prior to selecting the ATM company, one essential question to ask is which financial institutions are a part of the network.

Triton Corporation is considered one of today’s six major manufacturers of ATMs worldwide. In 1997, this company was one of the first manufacturers of networked machines. This U.S. company is also an international supplier of machines. They install “white label” machines throughout Canada. These ATM’s cater only to the customers of the bank that owns the machine. Canadian law allows that bank to set their transaction fees because it is a private network the customer is accessing.

The Tranax Corporation would seem to be in direct competition with Triton because they target many international countries and currencies. The international traveler can use one of these ATM’s to withdraw an amount specified in their home currency and have it dispensed in the local currency already taking into account the current exchange rate and the fees charged accordingly. If your store is in a location that caters to a large number of international customers, a Tranax manufactured ATM might be a good choice for you.

The Korean conglomerate Hyosung is also a manufacturer of multi country networked ATM’s, as are both Triton and Tranax. Their manufacturing is conducted under the Nautilus Hyosung corporate name. Nautilus Kyosung will partner with the Kyosung IT entity in an effort to develop whatever related software is required at your specific installation.

Having ATM facilities on location at your store used to be a competitive advantage. Today it is just one capability you need to stay in the game. Look closely at Triton, Tranax and Nautilus Kyosung to find the machine and business model that best meets the demographics at your location.

There are many companies in the ATM machine business that are associated with all or some of the companies shown above. If you are unsure of what model or capabilities best suit your business, be sure to do some comparison shopping to learn more before you make a commitment.

Remember that the machine you choose should offer high quality, reliability, and security for your business and your customers’ convenience.

The Top 10 Reasons to Get Into a Good Travel Business Right Now

Are you surprised?  Next to the real estate and housing industry, the travel industry is said to be the second largest industry in the world. 

Did you know that in the USA more money is spent on travel annually than on healthcare, more than on telecommunications, far more than on computers and surprisingly, even more than on food? 

Travel is a 7 trillion dollar plus industry worldwide and is expected to continue to grow dramatically over the next two decades as members of the baby boom generation fulfill their number one goal: to travel more.  Younger generations are becoming more adventurous as well.  People worldwide, in developing nations and developed nations, desire to travel more as they are exposed to new worlds on the Internet and as their incomes continue to grow.  We live in an increasingly smaller world. 

And, as people earn more and more money in their home travel businesses, they receive many wonderful travel bonuses and get to travel a lot more.

There are currently a couple of home-based businesses in the field of travel and leisure that have become extremely popular within the past year.  After carefully studying their business models, their compensation plans, their benefits and their reputations, you might want to select the best one and get started.

In fact, travel businesses have become very popular virtually worldwide. Besides in the USA, two reputable US-based home travel business have begun to explode in places like Canada, Australia, the UK, the EU, India, Malaysia, the Philippians, South Korea, Japan and of course China. 

Now, the Top 10 Reasons to Get Into a Good Travel Business Right Now:

  1. It is a huge industry with an eager worldwide market of over 2 billion people.
  2. It is projected to grow dramatically worldwide in the next few years and in the decades ahead.
  3. Good travel businesses are hot right now, in the USA and around the world – demand is very high.
  4. With the right company, it can be a high-integrity business with quality products like cruises, trips and vacations that nearly everyone desires.
  5. It offers exciting travel products and travel bonuses to exciting locations that can inspire, educate, broaden horizons, entertain and benefit people of all ages.
  6. It is a business that allows you to help others worldwide who want help and to truly change their lives.
  7. It is a simple, easy business that anyone can do with the proper training and support.
  8. It is a home business that’s not time consuming and is really, really fun!
  9. It can be extremely lucrative so you have more time and money to travel!
  10. You can get started in a legitimate home travel business with realistic six-figure potential for under $350! That includes membership and a huge discount on a choice vacation or cruise package.

In short, a home business in the field of travel can be very exciting and profitable right now and in the years ahead. 

One of the keys to success in any business is passion for the business and passion for the products and services that you market and consume.  Some people market soaps or vitamins, and others market highly discounted luxury cruises, trips and 3 to 5 star vacations to exotic locations around the world.  Travel is about exploration and fulfilling your dreams.

What excites you?

How to Start a Successful Business on the Internet!

Therefore, you’ve determined to start out your own business on the Internet.

Congratulations!

It will in all probability be the most effective call in your life. Solely operating for yourself will provide you independence, stability and satisfaction that you usually dreamt about. Together with your own business, you’ll be able to define your lifestyle and work schedule yourself. And with internet business, you can do it with less efforts and a lot of fun. However in fact, as with every different serious enterprise, you initially have to coach yourself, and do it well.

How to form cash on the Net

Everyone is aware of that the Net has become something additional than the data source. Nowadays, many folks make cash on the Internet, and even a lot of individuals want to join them. Not they all succeed, unfortunately. You must have heard about lots of “dot-bombs”, failed e-commerce startups. They’re big in range, mainly as a result of most people do not devote enough time to self-education.

Another common reason for losing money on the Internet is the massive variety of “Get rich quick” schemes, that all promise giant income with very little or no effort, with solely some dollars to spend for some quite manual or “program membership”. You will never get into this sort of hassle, if you perceive one simple factor:

The sole guaranteed way to earn cash on the Internet or elsewhere is through honestly selling a valuable product or service to a proper audience. Period.

Browse the previous passage once again. Assume concerning it. It’s pretty obvious, isn’t it? But several folks may save their money and time if they ever considered that.

So, let’s make an necessary conclusion. To form money on the Net, you would like to come to a decision what to sell, and then, start your own business.

Somebody would say, “However that is all therefore complicated! I have never been taught to run a business! I even do not grasp how to start!” Well, how do you think, who are those people that run all businesses on the Web? Are they all geniuses? No! Geniuses do not happen to be born that often. Are they some super-creatures, mutants, or aliens from the celebs? Not likely.

Most of them are common folks like you and us. The only difference between them and those “dot-bomb” runners is that they learned additional, and they carefully arrange their actions. Therefore should you. If you don’t understand what to start from, read the articles on our net website to be told the large image, then use search engines to learn the details.

You do not need to be a professional web designer, software developer, or promoting skilled to run a successful e-business. There are plenty of hired professionals who will gladly facilitate your, and there is inexpensive software that can do all the necessary automation for you.

Your beginning investment will range from some hundred bucks to zero. The balance here is between some time and money. If you’ll invest some money, you’ll rent some consultants or get some software. If you do not wish to pay an excessive amount of cash, but have a lot of your time to find out, then you’ll be able to do most of the work yourself, and do with solely minimal automation at the beginning.

In general, if you’ll be able to browse and write (or have somebody near you who can), then you can run a successful e-business. The only important issue that’s up to you in most cases is a smart product idea.

There is one more important alternative for you to create: should you sell a product, or your service? There’s no single answer, both decisions are viable, and you’ll be able to opt for what you prefer higher, or what you think you can do better. But there’s a massive distinction between these two varieties of business.

When you sell a product, your income is solely restricted by the target audience size, and by the efficiency of your selling process. With e-business, you’ll be able to automate the selling process nearly totally, and liberate most of your operating time for additional necessary things, like business growth, research, or new product development. Well, after you come to think you are happy together with your income and do not need any more growth, you’ll simply relax and watch your business work while you’re enjoying your life.

After you sell your service, your income is strictly limited by the amount of your time you can devote to it (in all probability less than 8-12 hours on a daily basis). And working 8 to 12 hours every day continuously isn’t much fun, because it leaves you little time for your rest, hobbies, and family. That’s why we have a tendency to suggest you to attempt and produce a product, whether or not you mostly sold your working time and never thought of creating a product.

If you have got difficulties inventing your own product, the smallest amount factor you can forever do is “materialize” your work experience. You’ll structure and write down the tips and tricks of your everyday work, or your hobby, and provide your readers the recommendation how to reach that field. You’ll teach them how to save their time, or how to earn extra cash with little efforts, or one thing else you think that they might be willing to pay for. Then, you can sell your book on the Internet in either electronic or paper form. Everyone knows something valuable for other individuals, and you are not an exception. We have a tendency to’ll describe the process of creating your own information product in another article.
How can a tiny home business prosper on the Net

There are natural differences between massive and tiny businesses. Once you run a little business, you do not have a multi-million greenback advertising budget, and you do not have a lot of personnel to handle the sales and alternative paperwork. The nice news is that with electronic business, you wish very very little resources to succeed!

The key here is to seek out a good market niche, and to create a nice product for it. These 2 actions are strongly interconnected, as a result of every market niche corresponds to a product, or a set of products, and vice versa.

Therefore, what is a “sensible market niche”, and the way will you discover one? Market niche is your house in the market, your target audience. It ought to be big enough to come up with smart income, however not too large. You could raise, “Why? The larger my target market, the larger my potential income, right?”

Right, to some extent. However you can’t be everything for everyone. You just do not have the resources for that. Thus, if you try to take up too giant niche, you will should compete massive companies, which is not possible for a tiny business.

Here may be a tiny example. If you try and open an on-line universal book store, you may never have a reasonable market share, as a result of Amazon.com works in the same market and has a lot of a lot of resources. However if you specialize and pick a smaller niche (say, old comic books reprint), your probabilities to succeed are abundant higher. During this case, your target market can be too tiny to draw in Amazon.com, and you’ll be able to jot down trendy targeted ads, promote your business in on-line comic books community, and do different things that your larger competition can never even think to do.

And, in addition to having a proper size, a smart target market for e-business ought to be easily reachable online. This suggests that you must be able to find the particular web sites, on-line forums, mailing lists, newsgroups and alternative forms of Web communities where your target market hangs out. You may want to advertise in those places, as a result of you would like pre-qualified guests on your internet site. From this point of view, for instance, “Beatles fans” are a better audience than “30 to forty years previous men with a belly”, as a result of Beatles fans are easier to find on the Internet.

Targeting a little niche also has another advantage: it’s easier to become a recognized expert in an exceedingly little field. As an example, it is arduous or not possible to understand everything about all cars, but it is easier to find out everything your customers need to know concerning recent models of 1 manufacturer of your choice. You can eventually become one in all the world’s leading specialists in your field, and that will provide you the respect and trust of your customers.

No matter the dimensions of your target market, you need to learn the wishes and desires of your audience, and notice a great product that may solve some of their problems, or otherwise give them what they want. If the merchandise you sell to your customers is extremely great, they can trust you better the next time, and will be more probably to shop for from you again. This method, you’ll be able to constantly grow your business not only by attracting new customers, but conjointly by offering new merchandise to the prevailing ones.
What ought to I sell on the Web?

You can sell just about something on the Internet, but there are several things that tend to sell the best. The first such issue is information. That’s easy to explain. Individuals typically search for data when they browse the Internet. The data is what they have at that time, thus it’s the product they are possibly to buy. Another advantage of knowledge merchandise is that they’re fairly straightforward to create.

The following best product to sell on the Net is computer software. This is often also self-explanatory: several Net users are computer owners, and that they usually would like some software to resolve their problems. It’s logical for them to look for this software within the Web, and buy it there if available. Software could not be an acceptable product for most e-business startups, as it requires special technical skills and vital resources to supply and support.

Data product and software have another huge advantage for startups. They’ll be distributed electronically. This means faster delivery time for your client, easier sales method and smaller expenses for you.

After all, you’ll sell several other things. A good plan would be to sell your services on the Internet (translation services, or business consulting, as an example). Or, you can use the Net as a new media for your previous offline (brick-and-mortar) business. In this case you’ll be able to either only promote your product on the Web, or automate the sales process and settle for online payments.

10 Strategy Tools For Smaller Businesses

I come from a background in large blue chip businesses, where I spent a fair amount of time helping predominantly large clients with strategic issues and during the last ten years I’ve started and built a couple of smaller businesses. SME owners and directors need to think about strategy, but they need to concentrate upon those elements that are going to produce the most impact – by all means read the business strategy tomes from cover to cover if you want, but this article aims to give you, a busy SME director, most of what you need to know about strategy and analysis in order to make a start.

1 – 3 Types of Excellence. Many commentators would agree that a company has the option to excel (that means really excel so that the market recognises that excellence) in one or two of three possible areas:

Operational excellence – which means doing things really efficiently and therefore probably being able to deal with higher volumes and therefore passing on cost savings to customers (although it is possible to think of examples where operational excellence was so valued by the customer that she would be prepared to pay a premium for it alone). An example might be EasyJet.

Customer intimacy – which means that you have systems and staff who treat customers as royalty (or at least good friends) and they feel loved and valued by your business. An example might be John Lewis.

Product leadership – which means that your product (or service) is highly differentiated from alternatives and substitutes in ways that customers value. An example might be Apple.

2 – Do a McKinsey. As a start-up or small business you may not be able to afford a McKinsey assignment to address your strategy issues, but you can apply one of their most powerful weapons to your advantage. MECE stands for “mutually exclusive, collectively exhaustive” – apply it to your problems and you could see great results. MECE is a useful model for analysing a business problem because it aids clear thinking by ensuring that categories of information do not overlap, and by reducing the possibility of overlooking information by requiring that all of the categories of information taken together should deal with all possible options. Information should be grouped into categories so that each category is separate and distinct without any overlap (mutually exclusive), and all of the categories taken together should deal with all possible options (collectively exhaustive). A “major issues list” should contain no less than two, and no more than five issues, with three being the ideal number. Let’s say that Acme Widgets Ltd use a MECE tree diagram to help them locate the source of declining profitability. The diagram as a whole represents the problem at hand; each branch stemming from the starting node of the tree represents a major issue that needs to be considered; each branch stemming from one of these major issues represents a sub-issue that needs to be considered; and so on. The problem to be addressed in this case is “how can Acme Widget Ltd increase widget sales?”.

You will hopefully find that analysing issues down to the constituent parts using this technique will clarify where the real issues lie and they will now be in more “bite sized chunks” and so be easier to handle.

3 – Markets & Industries. The expressions “What’s your market?” and “What industry are you in?” are thrown around pretty well interchangeably – what exactly do we mean when we say “market” and “industry”. If you use the definitions that I suggest then a great deal more clarity will start to appear around the potential strategy that you should adopt.

I suggest that market should mean – a group of people / organisations who have the desire & ability to buy products to satisfy a certain need or want ie buyers & their needs. Market therefore is not about your product or service (although of course related). I suggest that you spend a reasonable amount of time thinking about who the buyers of your products or services are / could be and what traits or characteristics they share. By being able to describe your market(s) accurately and precisely you will subsequently be able to focus your sales and marketing efforts far more effectively.

When thinking about markets (ie buyers) you should also consider:

* How attractive are your products and services to these buyers
* And how attractive is the market to you – is it clearly defined, growing, shrinking, are external influences going to affect its size in future, are they easy or difficult to persuade to buy, and so on.

I’d suggest that industry should mean – sellers that offer products or services that are similar or substitutes. Sellers sell into markets. So let’s say that you have founded a business offering disposable paper place mats for university canteens where businesses can advertise themselves to students. The classic Dragons Den question is “so what competitors do you have?”. Of course you would be wrong to say “none – we are the only people doing these advertising place-mats”. Rather you need to think about what industry you are in, and the answer is likely to be “the provision of advertising to target students” industry so your competitors would include – Facebook, local radio, advertising hoardings, Google Ads, free magazines etc. The key thing when defining your industry is similar or substitute offerings – you may think that you are unique but if your potential customers consider something else then that something else is in the same industry as you!

When thinking about industry (ie other sellers you should also consider:

* Can you sustain any advantage (indeed do you have any advantage?)

* How attractive is your industry (more on this below)

4 – Attractiveness of an Industry. Of course different industries have different levels of attractiveness and you should be aware of that right at the outset. But it isn’t necessarily the case that you should only operate in attractive industries and disregard unattractive industries. Good business can be created in “unattractive industries” and it is perfectly possible to fail within what would be viewed as an attractive industry. The analysis that you perform to establish that an industry is “attractive” can be carried out by the rest of the business world too, so others might stampede into the industry and change its attractiveness quite quickly. Industry analysis doesn’t ensure that you have picked a winner, it just means that you are well informed about your business environment.

The defining work on industry analysis was carried out by Professor Michael Porter of Harvard Business School and published in his 1979 book “Competitive Strategy” – Porter’s Five Forces.

Porter’s Five Forces

Competition: How strong is the rivalry posed by the present competition? The various factors, include: the number of firms in the industry, rate of market growth, economies of scale, customer switching costs, levels of product differentiation, diversity of competition, level of exit barriers.

Barriers to entry: What is the threat posed by new players entering the market? The various factors include: capital costs of setting up,highly specialised equipment, level of protection of necessary intellectual property, scale and branding of existing competitors, government regulations.

Substitutes: What is the threat posed by substitute products and services? The various factors include: the cost to customers of switching to a substitute, buyer propensity to substitute; relative price-performance of substitutes, product differentiation.

Supplier bargaining power: How much bargaining power do suppliers have? The various factors include: number of possible suppliers and the strength of competition between them, whether suppliers produce differentiated products, importance of sales volume to the supplier, cost to the buyer of changing suppliers, vertical integration of the supplier or threat to become vertically integrated (ie the degree to which a firm owns its upstream suppliers and its downstream buyers).

Customer bargaining power: How much bargaining power do customers have? Factors that will effect the bargaining power of a customer include: volume of goods or services purchased, number of other customers, brand name strength, product differentiation, availability of substitutes.

5 – Spider diagram. Understanding how your business compares to the competition and to customers perceptions of value is a really key element of strategy. A great way to form a better understanding is to establish the key important dimensions (by asking the people who matter, customers) and then representing them graphically using a “spider diagram” such as below. You can map how your business measures up and how the competition measure up and then it will be readily apparent where areas of competitive advantage / disadvantage lie.

6 – SWOT. Dear old SWOT (strengths, weaknesses, opportunities, threats) – it hardly needs any introduction

Strengths weaknesses opportunities threats

After a business clearly identifies an objective that it wants to achieve, SWOT analysis involves examining the strengths and weaknesses of the business (internal factors); and considering the opportunities presented and threats posed by business conditions, for example, the strength of the competition (external factors).

Don’t fall into the trap of SWOT becoming two lists – one of “pros” and the other of “cons” and make sure that you use it critically and with clear prioritisation. So for example, weak opportunities shouldn’t balance strong threats.

7 – The Sales Funnel. Strictly speaking this isn’t a pure strategy tool but a very powerful sales strategy analytical tool nonetheless.

If your problem is with generating interest and awareness, then look at your PR – where are your target market seeing you talking about what you do? Are you engaging with your target market? If your problem is with generating leads, then how well are you explaining how you meet your target market’s needs with your products or services? If your problem is with converting leads into serious buyers, how well are you encouraging your buyers to take action? How well are you demonstrating your credibility and expertise to solve their problems? If your problem is with closing the sale, what objections are you hearing from your potential buyers? How are you overcoming these objections?

8 – The 4 P’s. Again the purist might argue that this is marketing strategy rather than pure business strategy – but we don’t mind what you call it because it all helps to being a more successful business. There isn’t the space here to do justice to the 4 P’s of marketing but to skim the surface they are a framework for evaluating the marketing strategy for a product.

Price: the pricing strategy employed by a firm for a particular good or service will have a significant effect on profit.

Product: differentiation is a source of competitive advantage. Product differentiation creates value in the mind of the consumer.

Position / Place: the physical location of a good or service can be a source of competitive advantage.

Promotion: is used to enhance the perception of a good or service in the minds of customers. A promotion will draw peoples attention to any features of a product that they might find attractive.

9 – Strategic Advantage. Following on from his work which resulted in the “Five Forces”, Michael Porter suggested that businesses can adopt one of four generic business strategies, as represented in the diagram below.

Generic strategies

The differentiation and cost leadership strategies seek competitive advantage in a broad range of market or industry segments. By contrast, the differentiation focus and cost focus strategies are adopted in a narrow market or industry.

I will write about this more fully in a strategy for smaller businesses booklet soon to be published, but for now it might be best just to suggest some example companies that might fit into each quadrant:

Cost Leadership: Tesco
Differentiation: Mercedes Benz
Cost Focus: Instore
Differentiation focus: The Perfume Store

Generic Strategies Example Companies

10 – Product & Service Life Cycle. The product lifecycle curve was originally the brainchild of another great management thinker, Theodore Levitt and was first published in the Harvard Business Review in 1965. Again space here does not allow for a full description.

Product Life Cycle Curve

Introduction: As a new product much time will be spent by the organisation to create awareness of it’s presence amongst its target market. Profits are negative or low.

Growth: If consumer clearly feel that this product will benefit them in some ways and they accept it, the organisation will see a period of rapid sales growth.

Maturity: Rapid sales growth cannot last forever. Sales slow down as the product sales reach peak as it has been accepted by most buyers.

Decline: Sales and profits start to decline, the organisation may try to change their pricing strategy to stimulate growth, however the product will either have to be modified, or replaced within the market.