Wednesday, October 10, 2007

Incredible global marketplace-Prepearing for the future.

If you go to the basics of classical marketing of 4P’s one
P=Place is no more local or any region/country centric for survival and satisfying the stakeholders it is becoming global to get the maximum leverage.
Some points are to mentioned.

Point No 1 Uniformity: Recently Vodafone in launching its product in the Vodafone Brand in India, Vodafone wants to bring its USP’s to all the Indian customers at a very affordable price fighting against existing players like Airtel, BSNL, Reliance. If you go by the statistics it has got 35-Million customer base( Hutch) in India 16-17% market share and catering the market thru 400000 retail outlets. The Indian telecom market is growing at an Approx CARG of 40%+(One of the fastest in the world). All the existing customers and the so-called potential customers wants excellent service and at a specific price point. Typically an India Telecom market like China is a very price elastic market. At US$25 you get a mobile handset and one year incoming free calls and some talk time free, in 7-8 months time they want to increase the share to 45% and get in to RMAG (Rural, Micro, Agricultural) segments and it may further drop the price US$20 for capturing the market share. Strategically it may kill many small players and as Vodafone has got huge reserves it can get the chunk of the big market of India which is an emerging market and the payback period may be in 5-6 years with full of uncertainties both political and market.
Is it really possible to adopt this practice in any small country with small population?
It is matter of pick and choose of countries. So here is not uniformity of the Brand but uniformity in technology and services of CDMA or GSM.

2. Statelessness: Firms generally will not get into areas where the political instability is there and govt is not investor friendly and more often Joint Ventures are requested for in countries like China, where technology has to be shared.
Products, which are manufactures in Israel, are not sold in the pan Islamic countries. So we find global political harmony in extremely necessary for effective and successful globaloney. We are in a semiglobalisation state as you rightly mention. So glabalmania is yet to come or even it may not come at all because of politcal differences, which continued for past thousands of years.

3.Industries will become more concentrated and consolidation will happen: New opportunities will come up and consolidations will come, and region specific maturity and concentration will come in.
China for example has done wonderful achievements and has become the manufacturing hub as you said in your AAA formula of globalization.
India will be the next destinations for sub US$ 3000 small car manufacturing hub, and also in forging business where Fiat, Renault, Nissan all global players will play along with Indian conglomerate. As India is still trying to consolidate its positions in IT & ITes sector.

4. Endless Growth: Perfectly right here the world is really flat, a limitless growth in all sectors not only the U.S, South Korea, China, Russia, Japan and of late Indian companies are going global and taking the advantages and unleashing the tremendous potential of R&D, production facilities, trained cheap manpower, financial strength, electronically enabled marketing, and global drop shipment by very smart logistic, supply chain companies. Dell and Wal-Mart are the classic examples. Telemedicine cannot be ignored in this case also.

5 Act Of Faith: Faith has to be there in order to benifit from the technological and service benifits.Semiglobalisation is going to stay and slowly as comon benifits and common interest matures where political hegemony may come to an end then only the full form of Globalisation will set in.

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