Market Expansion Strategies Research Articles

Growing-Service Systems: New Business Models for Modular Urban-Vertical Farming

To secure sustainable and resilient food systems, new approaches, innovations, techniques, and processes are needed. In recent years, urban farming firms have been developing and experimenting with innovative approaches to expand their offerings and connect with consumers in new ways. New business models are being developed to provide functions and services instead of traditional products to meet demands from consumers, retailers, and users. As such, modular growing systems are increasing in popularity to provide fresh produce, visual appeal, transparency, and other tailor-made functions and services in so-called “growing-service systems” (GSS). Using GSS approaches, firms are developing and providing modular and small-scale farms in restaurants, residential spaces, supermarkets, and other commercial spaces, often including a large degree of automation and optimization of digital solutions to remotely control their operation. Using qualitative methods, the aim of this study is to explore and analyze the development of these novel GSS systems, highlighting different strategies, business models, motivations, and challenges. The results illustrate the divergence in approaches to GSSs for vertical farming. This includes different scales of modular units and varying business models for capturing value from the combination of products and services. All of the systems include varying degrees of automation and digitalized solutions to ensure the services are monitored, which is done to improve growing conditions and improve the experience for the users. Business-to-business systems are being developed as both market expansion and awareness-building strategies, where modular units are provided as a rental or subscription model that includes a number of services. Business-to-consumer systems are being introduced as an alternative for consumers, particularly in urban areas, to have greater control and access over growing their own fresh produce. The modules are purchased by consumers, which includes a number of ongoing services from the GSS firms. By categorizing and exploring these systems, this article offers novel insights and a first endeavor to distinguish these new GSS systems in the growing segment of urban agriculture, controlled-environment agriculture, and product-service system literature.

QUESTIONING SUSTAINABILITY: ECONOMIC EXPANSION AND CONTRADICTIONS BEHIND INDIA’S ECO-FRIENDLY TEXTILE POLICY

ABSTRACT India's textile industry is among the largest in the world and contributes significantly to India's GDP and economic growth. As the second largest total exporter globally after China with more than 45 million workers, India's textile industry has long been the subject of criticism concerning labour exploitation and environmental damage. Since 2016, nevertheless, Narendra Modi's government has started to take a different yet somewhat perplexing approach to introducing and environmentally friendlier and more sustainable direction in its textile industry. This article aims to comprehend the reasons behind India's new policy arguing that—despite such changes—environmental sustainability has not become India's full concern in the textile sector at the moment. Such a shift was part of India's international market expansion strategy towards the European Union market which had imposed non—tariff import restrictions on India's textile products. This article also shows contradictions and tensions in the government's eco—friendly textile policy concerning its high production costs and India's yet dependence on conventional production systems.

Over-the-top bundled services in the Korean broadcasting and telecommunications market: Consumer preference analysis using a mixed logit model

Platform service providers in Korea and worldwide have launched over-the-top (OTT) bundled services, which increase market competitiveness. Forecasting the market expansion strategies of these providers can thus shed light on their future actions and influence government policies. In this context, this is the first study to analyze consumer preferences for bundled pay-TV and OTT services. However, due to a lack of market data availability, we conducted a discrete choice experiment and analyzed the marginal utilities of attributes using a mixed logit model. The results demonstrate that consumers expect an additional discount for pay-TV services when bundled with OTT services and that the more bundled services they currently use, the less sensitive they are to the discount rate. Furthermore, we found that OTT and TV broadcasting services have a complementary, rather than a substitute, relationship. Finally, according to a simulation analysis for the Korean broadcasting market, bundling OTT services to expand the market share of pay-TV service providers was largely ineffective.

Internationalization Behavior of Biotech Firms Producing a COVID-19 Vaccine

The purpose of this research is to explore the internationalization behavior of BioTech firms producing a COVID 19 vaccine using the Born Global internationalization model as a conceptual framework. The research methodology that has been considered in this study is a qualitative, multiple-case study to gain valuable insight about the internationalization behavior of BioTech firms producing a COVID 19 vaccine, and how and why these BioTech firms internationalize. Secondary data was collected via various websites, the BioTech firms’ official websites, through corporate documents, press releases, published articles, journals, and annual reports. The data analysis disclosed four themes to answer the research questions. The findings from the qualitative analysis, suggest that BioTech firms producing a COVID-19 vaccine use the combination of multiple market entry modes and expansion strategies to internationalize. The first limitation of this research is the sample size used in the multiple-case study. Secondly, although most of the information was from the websites of the firms in this paper, other sources were also used and that could raise the issue of quality and trustworthiness. There is a call for further research to explore the internationalization process, behaviour, and patterns of BioTech firms producing a COVID-19 vaccine using different methodologies, sample size, the industry, and firms from other continents to close the gap.

Стратегії та форми виходу консалтингової компанії на міжнародний ринок

The article necessitates studying the theoretical and practical aspects pertaining to the formation and choice of a strategy for the entrance of economic entities in the consulting sphere to the international market along with adaptation of certain regularities to the modification of market conditions. The article researches trends, characteristic features and tendencies of the international consulting market in the field of technical design and engineering; outlines key concepts of the industry; presents proportions of this type of business; identifies the dynamics of the market of consulting services on technical maintenance and consulting in the USA and the countries of the European Union. The factors of influence on the international policy of the consulting company for technical design and engineering are analyzed and a block scheme for the formation of an international strategy for entrance to the world market is presented. The stages of formation of the strategy and form of the consulting company’s entry into the international market are defined. The analysis of the level of involvement in various strategies for entering foreign markets allowed to systematize the strategies for entering foreign markets according to certain criteria. As a result of the research, new vectors of strategic approaches to the consulting company’s activities in the international market are allocated, the attractiveness of strategic external business activities is assessed by means of the Delphi method. Prospect for further research in this direction is a substantiation of the market expansion strategy, in which the consulting company can adapt the extant services for new markets. Further development of the era of «consulting 4.0» can lead to the replacement of traditional consulting services.

Profit Effects of Consumers’ Identity Management: A Dynamic Model

We consider a non-durable good monopoly that collects data on its customers in order to profile them and subsequently practice price discrimination on returning customers. The monopolist’s price discrimination scheme is leaky, in the sense that an endogenous fraction of consumers choose to incur a privacy cost to become active, i.e., to be able to conceal their identity when they return in the following periods. We characterize the Markov Perfect Equilibrium of the game. We find that, regardless of the accuracy of firm’s data on their customers, managers adjust their pricing and market expansion strategies to the presence of active customers in the following way: (i) reduce the pace at which introductory price falls over time, and (ii) strategically guarantee that market expansion is incomplete. The equilibrium number of passive customers in the market is found to be increasing in the level of the privacy cost. Investigating the impact of customers’ identity management on profits, we find that the monopolist’s aggregate profit is a U-shaped function of the privacy cost whatever the degree of the monopolist’s information accuracy. Still, the profit effects of consumers’ identity management choices are shown to depend on the monopolist’s profiling capabilities. Two customer profiling structures are compared. In the case of full information acquisition (FIA), the firm can practice personalized pricing on returning passive customers, while in the case of purchase history information (PHI), it has only enough information for group pricing. We show that in the FIA case, the monopoly equilibrium profit is globally an increasing function of the privacy cost while in the PHI case, it is almost always a globally decreasing function of it (especially for low discount factors).

Uticaj digitalne transformacije poslovanja na formulisanje novih korporativnih strategijskih pravaca

The digital economy, as an economy primarily functioning via digital technologies, has made its impact on the development of the digital transformation concept. Such a form of business transformation requires the integration of digital technologies in all industries. The paper underlines the importance of the essential elements of transformation, regarding customer experience, operational processes, business models, employee experience and digital platform, along with the key business spheres relating to competition, innovation and value, which digitalization changes on the way. The main goal of the paper, therefore, is to point to the impact of digital transformation on the process of formulating new corporate strategic directions. With this in mind, the paper's main aim is to stress prospective corporate strategic directions of digital transformation under conditions of deep digital penetration. The paper is based on the working hypothesis that despite the fact that existing businesses most commonly start with market penetration, through developing a digital technology strategy, as well as a digital market expansion strategy, further development of digital transformation leads to the creation of digital platforms that are built by a mutual collaboration of numerous stakeholders connected through joint value creation and its delivery.

Uticaj digitalne transformacije poslovanja na formulisanje novih korporativnih strategijskih pravaca

The digital economy, as an economy primarily functioning via digital technologies, has made its impact on the development of the digital transformation concept. Such a form of business transformation requires the integration of digital technologies in all industries. The paper underlines the importance of the essential elements of transformation, regarding customer experience, operational processes, business models, employee experience and digital platform, along with the key business spheres, relating to competition, innovation and value, which digitalisation changes on the way. The main goal of the paper therefore is to point to the impact of digital transformation on the process of formulating new corporate strategic directions. With this in mind, the main aim of the paper is to stress prospective corporate strategic directions of digital transformation under conditions of deep digital penetration. The paper is based on the working hypothesis that despite the fact that existing businesses most commonly start with market penetration, through developing a digital technology strategy, as well as digital market expansion strategy, further development of digital transformation leads to the creation of digital platforms that are built by mutual collaboration of numerous stakeholders connected through joint value creation and its delivery.

Corporate Growth Strategies and Performance of Selected Savings and Credit Cooperative Societies in Nairobi City County, Kenya

The dynamic nature of business operating environment has called on business leaders to be strategic in their leadership roles if they are to sustain their competitiveness into the unforeseen future. Growth is important in Sacco’s because it is future oriented establishing ways in which the organizational operations can be aligned to future changes in the business environment to ensure that competitiveness is sustained. The SACCOs in Kenya have experienced problems in the past; some even shutting down therefore there is need for customer growth to be enhanced so as to increase their incomes so as to sustain the business. These SACCOs have to look for leaders and managers who can develop future targets, direct and lead other staffs towards meeting the firm’s objective and gaining a competitive edge. The aim of this study was an assessment of corporate growth strategies and performance in savings and cooperative societies in Kenya, Nairobi County. The study sought to determine the influence of market expansion, diversification strategies and acquisition strategies. The study target population was 41 licensed SACCOs in Nairobi County. The study used primary data to collect information, and the data collection instrument was a questionnaire which was given to the 41 operations managers in the 41 selected SACCOs. The data collection procedure was done by the researcher and drop-and-pick strategy will be applied. The data was coded and keyed in Statistical Package for Social Science (SPSS Version 23.0), and was analyzed using both descriptive and inferential statistics. For descriptive statistics was through mean scores, standard deviations, frequencies and percentages, while the inferential statistics was through regression analysis to establish the relationship between strategic leadership and customer growth. The findings were presented in tables and charts for easy understanding, interpreting, and describing the data. The study established that market expansion, diversification strategies and acquisition strategies as corporate growth strategies had a positive and significant effect on the performance of SACCOs in Nairobi City County. The study concluded that the SACCOs significantly employed market expansion strategies through improved branch network, customer base enhancement, new distribution channels and technological innovation. The study concluded that the SACCOs embraced a hybrid of the main diversification strategies, diverse products and services significantly. It was concluded that to a little extent the selected SACCOs in Nairobi City County have employed acquisition as a corporate growth strategy. The study recommends that the SACCOs should embrace integrate technology in the implementation of corporate growth strategies to enhance efficiency and effectiveness. Further studies should be undertaken to establish the effect of corporate growth strategies on the performance of other SACCOs in other regions to establish the disparities or similarities among the financial sector players.

Consumer proximity and brand loyalty in craft soda marketing: A case study of Ale‐8‐One

AbstractCraft soda has become increasingly popular among consumers. Local manufacturers have opportunities to use a variety of strategies to differentiate their products from nationally recognized brands, including the use of real or natural ingredients, premium ingredients, and locally sourced ingredients, handmade and small batches, and creative taste. Loyal consumers of craft sodas often live within the proximity of the production location, and the manufacturers are normally small with a limited distribution area. From the local manufacturer's standpoint, it is important to segment the market based on the closeness to their distribution territory when studying the market demand, or at least to recognize if such locational preferences exist with a view toward identifying market expansion strategies. In this paper, we focus on the case for a Kentucky local craft soda producer, Ale‐8‐One. We examine the demand for craft and noncraft soft drinks using Nielsen scanner data to test whether consumer behavior is different in the core markets. The results show that, in this case, craft soda consumers are less price responsive and more brand loyal in the core market, compared with the outside market. [EconLit Citations: C55, D12, Q13].

THE INFLUENCE OF CORPORATE CULTURE AND ITS ENVIRONMENT TO WARD THE ENTREPRENEURSHIP ORIENTATION AND MARKETING STRATEGY AND ITS IMPACT TO THE PERFORMANCE OF A COMPANY AT CIPUTRA GROUP

The growth of the property industry makes one of the companies engaged in the property sector such as Ciputra Group have many competitors that are starting to emerge. In this case, the strategy is very important for Ciputra Group, considering that sales in the first semester of 2015 decreased by 90 percent. This makes PT Ciputra Development Tbk implement a market expansion strategy especially the middle to lower segments. The Company also needs to concern the strategic marketing management practices to ensure that the strategies are suitable to be established within the organization.
 The purpose of this study is to prove and analyze the influence of the corporate culture and its environment toward the company performance by mediating entrepreneurial agreements and marketing strategies at Ciputra Group.
 This research based on the time of the observation, named crossectional study, and the type of the usefulness named explanatory study. The research was conducted at Ciputra Group Company in August till September 2018. The sample population was 148 subsidiary companies from PT Ciputra Development Tbk. The data analysis technique used Structural Equation Modeling (SEM) with AMOS V24 software.
 The result of the analysis provide a conclusion that the company's environment has a significant effect on entrepreneurship orientation and company’s performance, but it has no effect on marketing strategy. Corporate culture only has a significant effect on entrepreneurship orientation and marketing strategy, while there is no directly significant effect toward the company‘s performance. Furthermore, entrepreneurship orientation and marketing strategy have a significant effect to the company’s performance.

The analysis of methods for developing the marketing strategies in agribusiness

The article deals with the development of marketing strategies. There is set out the methods for developing a marketing strategy for the agrarian enterprise. The formation of a competitive developmental strategy has been considered, as well as formal and informal marketing strategies have been identified: BCG matrix, Ansoff matrix, Porter matrix, and development of author’s methods. The matrix of the Boston Consultative Group allows to identify the most promising and, on the contrary, the “weakest” products or divisions of the enterprise, which are divided into 4 types: stars, cash cows, difficult children, dogs. Ansoff Matrix systematizes the available information about the market and the company’s products, helps to choose the right direction of business development, taking into account the available resources and capabilities of the enterprise. In addition, the article describes the structure and construction of the Ansoff matrix, which consists of four marketing strategies: market penetration strategy; market development strategy or expansion strategy; product development strategy, product development strategy or product expansion; diversification strategy.

Emerging Market or Neighbourhood Country? A Case Study of Aura Light’s Market Expansion Strategy

Aura Light, a Swedish lighting company, is currently in a transforming phase from a lighting products company into lighting solution provider. This change requires considerable new investments that resulted in the company’s cash operating cycle longer. However, there are two ambitions to pursue by the management of Aura Light in the next five years. Firstly, expanding market to India and Brazil by selling traditional products that potentially double its revenue in five years. Secondly, focusing on building the transformation and settling up solutions and LED market in Europe. Meanwhile, the long-term goal of Aura Light is to be a leader player of lighting solution and LED in Europe market. With current resources and financial condition, Aura Light can only choose one of those options instead of doing both at the same time. This study is aimed to answer Aura Lights dilemma by providing managerial recommendation based on international business theoretical frameworks.

A decade of cigarette taxation in Bangladesh: lessons learnt for tobacco control.

Bangladesh has achieved a high share of tax in the price of cigarettes (greater than the 75% benchmark), but has not achieved the expected health benefits from reduction in cigarette consumption. In this paper we explore why cigarette taxation has not succeeded in reducing cigarette smoking in Bangladesh. Using government records over 2006–2017, we link trends in tax-paid cigarette sales to cigarette excise tax structure and changes in cigarette taxes and prices. We analysed data on smoking prevalence from Bangladesh Global Adult Tobacco Surveys to study consumption of different tobacco products in 2009 and 2017. Drawing on annual reports from tobacco manufacturers and other literature, we examine demand- and supply-side factors in the cigarette market. In addition to a growing affordability of cigarettes, three factors appear to have undermined the effectiveness of tax and price increases in reducing cigarette consumption in Bangladesh. First, the multitiered excise tax structure widened the price differential between brands and incentivized downward substitution by smokers from higher-price to lower-price cigarettes. Second, income growth and shifting preferences of smokers for better quality products encouraged upward substitution from hand-rolled local cigarettes (bidi) to machine-made low-price cigarettes. Third, the tobacco industry’s market expansion and differential pricing strategy changed the relative price to keep low-price cigarettes inexpensive. A high tax share alone may prove inadequate as a barometer of effective tobacco taxation in lower-middle income countries, particularly where the tobacco tax structure is complex, tobacco products prices are relatively low, and the affordability of tobacco products is increasing.

Firm-specific internal determinants of profitability performance: an exploratory study of selected life insurance firms in Asia

PurposeThis study is an exploratory study investigating firm-specific internal factors that influence the profitability performance of selected life insurance firms in eight Asian countries (China, Hong Kong, Taiwan, Singapore, Japan, South Korea, Thailand and Malaysia) from 2008-2014. This paper aims to focus on internal rather than external factors based on the resource-based view suggesting that the internal resources of a firm are key to gaining competitive advantage.Design/methodology/approachThe authors used panel data estimation model to test our six hypotheses on these eight selected countries for the period between 2008 and 2014.FindingsA random effect model reveals that size, volume of capital and underwriting risk are significantly related to the profitability of Asian life insurance firm, measured as return on assets. Premium growth, asset tangibility and liquidity are insignificant predictors of the profitability performance of these life insurance firms.Practical implicationsThree implications of this study are that life insurance firms need to proactively tap new business opportunities by attracting younger generation customers via e-marketing technologies; secure larger capital base to finance their market expansion strategies; and focus on intangible resources such as goodwill, brand equity and reputation.Originality/valueThis study contributes to the literature by conducting an exploratory regional-based panel study of Asian life insurance firms to find common factors that contribute towards profitability. The study is conducted on a collective sample of Asian life insurance firms based on the premise that the firms included in the sample engage in cross-border activities and share the same international financial reporting standards. These commonalities allow us to treat the firms jointly in a somewhat similar Asian macroeconomic environment.

Customer Base Strategies

Growing and sustaining the customer base of an organization is always a challenge to firms’ operating in an intense and competitive industry and where the cost of brand switching is relatively low. For an organization to adopt any strategy, the need to scan its environment will be necessary to avoid making a strategic mistakes that are capable of causing an organization its life as a corporate entity. The study aimed at identifying and discussing strategies an organization can adopt in growing and sustaining its market share in a given industry. These strategies include; innovation strategy, market segmentation strategy, market expansion strategy, 80/20 business strategy, and customer relationship retention strategies. A research model was formulated for the purpose of guiding further studies.

STRATEGI BAURAN PEMASARAN WINE SEBAGAI PRODUK PENUNJANG PARIWISATA (STUDI KASUS PT. SABABAY WINERY BALI)

Recently wine tourism products are being developed in Bali. Bali’s Wine is produced from the wineries, processed and produced in Bali which can be used as a tourist activity. This study aims to determine the strengths and weaknesses in wine products marketing and opportunities also, threats and know the strategy and marketing program of wine product that can be applied in PT. Sababay Winery. Data collection techniques used observation, interview, literature study, questionnaire, and documentation. Determination of the sample in this study is to use purposive sampling. Informant determination using key informant. This research use descriptive qualitative data analysi combine with likert scale analysis. The purpose of this study is to determine the characteristics of tourists, to find out the factors those influenced the decision of tourists to buy some souvenirs and also to find the most influenced factors. The methods of collecting data were through observation, interviewed, questionnaire, documentation, and literature study methods. The methods of analysis data were using descriptive quantitative method, through validity test, reliability and analysis of factors those supported by SPSS program 17.0 version. From this research, there are fourteen strength indicators and two indicators of weakness and indicators of opportunity as many as seven indicators and three indicators of threats owned by PT. Sababay Winery. Strategies and marketing programs that can be applied by PT. Sababay Winery is a product creation and development strategy, a strategy to increase wine product promotions, market expansion strategies, and marketing enhancement strategies.

Contentious corporate social responsibility practices by British American tobacco in Cameroon

A implementação da responsabilidade social corporativa (CSR) por empresas com má reputação, especialmente as envolvidas na produção de tabaco, atraiu críticas de vários setores. Desde meados da década de 1980, as empresas de tabaco intensificaram as estratégias de expansão do mercado em vários países africanos. Elas usaram música para atrair jovens e crianças, organizaram desfiles de moda para atrair as mulheres para fumar, ofereceram cigarros livres para crianças nas ruas e, por muito tempo, minaram os esforços dos governos para implementar uma legislação eficaz sobre o tabaco e participaram ativamente do contrabando de produtos de tabaco no continente. Pior ainda, as empresas de tabaco persuadiram alguns governos africanos a promover o cultivo do tabaco como uma importante fonte de ganhos no exterior e, nos últimos anos, a indústria do tabaco recorreu ao uso da responsabilidade social corporativa (CSR) para massagear sua imagem e para cobrir sua trilha. A British American Tobacco (BAT), que é o foco deste artigo, teve um monopólio virtual em partes da África, tanto em termos de fabricação de tabaco quanto de vendas de cigarros. Em onze países africanos, a BAT tinha mais de 90% do mercado de cigarros. Este artigo examina alguns dos impactos de saúde, sociais e econômicos das atividades das BATs em África de 1985 a 2010 usando Camarões como estudo de caso. O objetivo deste artigo é demonstrar como a British American Tobacco usou sua estratégia de responsabilidade social corporativa para encobrir a controvérsia que envolve suas atividades nos Camarões.O documento conclui, portanto, que a forte pegada do BAT no continente africano causou estragos na economia, na saúde e no bem-estar das pessoas, contribuindo parcialmente para o aumento dos gastos sociais do governo dos Camarões.

Contentious Corporate Social Responsibility Practices by British American Tobacco in Cameroon

Since the mid-1980s, tobacco companies have intensified market expansion strategies in several African countries. They have used music to target youths and children. They organised fashion shows to entice women into smoking. They offered kids free cigarettes on the streets and for a very long time undermined efforts by governments to put in place effective tobacco legislation. They actively participated in the smuggling of tobacco products into the continent. Worse still, tobacco companies persuaded some African governments to promote tobacco cultivation as a major source of foreign earnings. And in recent years, the tobacco industry has resorted to using Corporate Social Responsibility (CSR) to massage its image and cover its tracks. British American Tobacco (BAT), which is the focus of this paper, had a virtual monopoly in parts of Africa, both in terms of tobacco manufacturing and sales of cigarettes. In eleven African countries BAT had more than a 90% share of the cigarette market. This paper examines some of the health, social and economic impacts of BAT’s activities in Africa from 1985 to 2010 using Cameroon as a case study. The paper concludes that though the full effects of rising tobacco consumption (namely a steep rise in smoking-induced illness and premature death) was at the dawn of the 21st century, Africa was already in the grip of a major tobacco epidemic. There is no doubt therefore that, BAT’s heavy footprint on the African continent wreaked havoc on the economy, health and welfare of the people, thus partially contributing to the non-realisation of the Millennium Development Goals (MDGs) that were designed to help the world’s poorest people.

Market Orientation, Growth Strategy, and Firm Performance: The Moderating Effects of External Connections

ABSTRACTThis study examines the mediating effect of growth strategy (including market and product expansion strategies) on the linkage of market orientation (MO) to firm performance and the moderating effects of a firm's external connections (including political and business ties) on the relationship between MO and growth strategy. It finds that both market and product expansion strategies are key conduits through which MO improves firm performance. In addition, the relationship between MO and market expansion strategy is positively moderated by political ties but negatively moderated by business ties, while the linkage of MO to product expansion strategy is moderated negatively by political ties but positively by business ties. By combining mediating and moderating effects in a framework that integrates MO, growth strategy, external connections, and firm performance, this study enriches our knowledge on the implications of MO and provides insight into factors that facilitate firm growth.