Setting up a new business in a different country is always a tough call. Here are the 7 most imperative aspects that the CEOs should keep in mind while planning for international business presence.
The key priority of any business is always to expand the services in different countries for a great international exposure. But entering into a foreign market is always challenging no matter how popular your brand is in any country. You cannot afford the luxury of lack of research and planning since this will force your business reputation to go downside with no time. We have experienced the same with Target, one of the most well-known discounted retailers in the US. Improper planning and lack of preparation forced them to experience failure in successfully expanding their business in Canada.
Here we will focus on 7 lessons that CEOs, looking to expand their business internationally should always be careful about. In other words, we will try to learn from the failure of Target Canada.
1. You cannot afford to skimp the research process
Never ever skimp on the research about the country you are planning to set up your business. Before investing money, the business owners, the CEOs should focus on investing their time in understanding the market, the consumer sentiment, the culture and everything that can have even smallest impact on the business. And after the completion of the research, businesses should create a province-by-province business plan of growth. Target didn’t bother about all these steps and rushed into Canada with the popularity in the US.
Business owners should consider their business as a new one when entering into a new country. The popularity of another country will never work in a separate country since the culture and living style is completely different.
2. Focus on unique brand identity instead of quick business expansion
Getting associated with an already established brand in a country may prove to be effective but this too requires a lot of research about the company first. No any business will want to tie-up with a company with completely different business ideas. Target’s association with Zellers did allow them to quickly open 124 retails stores across Canada in a very short time but it made quite obvious to the consumers that the new brand will replace an existing brand and nothing else! Moreover the coveted customers of Zellers and Target were different.
If you are really looking forward to growth and success of your business, you need to establish your brand as unique and also competitive one. Offering the consumers something new should always be the key concern rather than eyeing for a quick exposure.
3. Live up to the promises your brand offer across borders
Consistency in the offerings and service is very important when you are establishing your business overseas. A very good reason for failure of Target Canada is that people loved Target when they visited the retail shop in the US for high standard products and affordable items. But the scenario was completely different when the company moved to Canada. Complaints about high price were flooding in. No matter how popular your brand in any country is, you cannot compromise with the USP (Unique Selling Point) of your business. The most positive aspect of your business can either make or break your reputation if not applied properly. This means living up to the promises that your brand offer irrespective of the geographical boundaries.
4. Focus on the customer satisfaction first than sticking to your strategy
Always put the buyer’s need first even before the system and planning and everything. You need to remember one thing that the key target of your business or any business is the customers and the revenue will come from them. So, rather than being worried about the protocols and pre-defined systems make sure that the customers are happy and satisfied. This also means that the businesses have to be responsive to all the changes.
Target’s poor supply chain performance in Canada made the situation worse for them. Most of the stores were left with empty stands and shelves. And the products that consumers were interested in were little in quantity compared to the products that were not in demand.
5. CEOs should have the ability to react quickly in negatives
As a successful business CEO, one should always be ready to confront any kind of problems in the business. When things are going wrong, the CEOs should take action immediately. If no action is taken, it sends a wrong message to the buyers regarding the company’s stand to meet the customer's’ requirements. And businesses should never stay with the impression that it will be easy to duplicate the success cross borders because of the success of the brand in any country.
Canadian consumers were keen on purchasing products from Target in the US. This impression somehow made the company think that this will be accepted in the Canada as well. Such arrogant assumptions lead to failure and nothing else.
6. Think of eliminating the cultural differences
Now, when you are talking about the overall business growth strategy in a new country, you cannot just restrict yourself to operational plan only. You cannot restrict your plan to service offerings only. There is more to this plan and strategy and that is the emotional attachment, sentiment. The executives in the retail outlets, the training employee, the operational team - everything is included in the planning.
If there is only one thing that could have saved the failure of Target Canada, it is Canadian executives. When a consumer will visit your new outlet he or she will certainly want an executive from the own place address him/her. This helps a lot to diminish the cultural differences.
7. Focus on the lesson from your failure
Ups and downs, success and failure are all part of every aspect of life. Business is also not out of this game. What makes a business successful is the approach of the CEOs towards failure. They should learn from the mistakes and work accordingly.
After the failure of the Target Canada, the CEO Brian Cornell shifted his focus to revive the US customers once again and slowly moved back home. This should never be the approach of a successful CEO. When things are not going right for the business, new plans, strategies should be implemented.
It is really very important for the CEOs to understand the business plans and strategies as well as, the culture and preferences of the consumers.
Every failure comes with a lesson. Successful people take the lesson and forget the failure. If you are planning on global exposure of your business, do keep in mind these 7 important aspects for a better growth in the global marketplace.
If the opinions of the industry experts are to be believed, the year 2016 is going to be the year of Hi-Tech manufacturing. With increased acceptability of connectivity, the companies are now more focused on bringing up life-enhancing services despite looking at the sale figures solely. Companies with the proven value will be at the higher position.
Here are the five top most hi-tech manufacturing trends for the year 2016.
The role of advanced analytics is going to be crucial for the manufacturing industry this year. This will improve the efficiency in the operation. The workplace will become more secure and it will be the workers pleasure to work in such an atmosphere. Digitalization of the assets will also be very crucial. Improving the inventory with advanced analytics will help to create a balance between the supply chain and operations data.
Robotics has been there in the industry for a long time but this year, we are going to see more application of robotics in the industry. The advancement of technology in improving the efficiency in the business is going to play a very crucial role and robotics will be the game changer. Already there are many companies in fact the biggest companies in the world like Google, Amazon, eBay have brought more robotics in the warehouse operation. Apart from improving efficiency, this will be a key factor for increasing the production volume as well. And the delivery time can be improved largely by the use of robotics.
Importance of IoT
The manufacturing world is gradually adopting the advantages of Internet of Things (IoT). The incorporation of technology in the business will be very important in fact, customers will look to this aspect of any company before getting associated. This will require maintaining a steady supply of talented workers. Companies need to think of hiring talented people for the overall improvement of the business process.
Security and safety
Every advantage has a flipside. The same goes for technology as well. While in one hand companies are talking about IoT, on the other hand, they need to think about the safety issues as well since connected technology is prone to hacking as well. In order to gain the faith of the customers, companies have work on the safety and security matters. At least they need to show the customers that they are concern about this matter. Securities should be increased during the production and distribution phase.
Coping up with the competitors
Now, this trend is nothing new you can say. Business competition has always been there. But like always, this is going to be a top priority of the companies this year as well. Increasing the factory space and time to speed up the delivery of products will be the priority. Fixing up the product disputes is also a crucial factor. Having the customer feedback will be important in this matter and companies may rely on social media since it has easier access to everyone.
Over the last three decades or so, internet has truly changed the way people communicate, share ideas and even perform business with others. In a way, we can say that the utilization of internet has truly brought an industrial revolution that we all are part of. Businesses have become more digitized now and in the coming future, with the application of best technological practices, we are definitely going to witness some really smart manufacturing processes.
The impact of Internet
The inception of Internet initially took place for Military Applications in the year 1960 and gradually its potential for non-military uses were discovered. What else, internet started to be applied in common human life as well and needless to mention that since then so many remarkable changes have taken place. The technology has single-handedly destroyed many service jobs namely – travel agents, tax accountants, bank tellers etc. while on the contrary, it has created new opportunities for various jobs in the technology industry as well. Moreover, getting connected with the digital world has truly revolutionized how communication occurs and information is shared.
People now have vast amount of information available at their fingertips and with the advent of smartphones, we now have the access to almost anything at anytime. Well, this has great impacts out there on the business world. From the consumers aspect easy and convenient service can be availed and from the business owner's’ perspective, keeping detailed data of everything and maintaining interaction in between is possible.
The Internet of Things
Whatever the purpose is that this Internet of Things is used for, whether it is consumer, industrial or for any other application, the sole object is to simply connect devices with each other so that communication becomes more effective and convenient. The idea has been there for more than a decade but it is only now that the technology has flourished enough for common human use. The most advantages of out is being absorbed by the industrial sectors. This has truly revolutionized the manufacturing and delivering process.
Here are some industrial applications of Internet of Things
The implementation of astute technology by various industries has not only paved the way for their success, it has driven business to a new direction as well. Appropriate utilization of Internet of Things (IoT) has solved the issues of long-standing industry-specific challenges. Developing to IoT solutions improves the connectivity, collecting data and deriving the insights for open and scalable solutions. This goes without saying that it has an impact on the overall revenue and productivity of the business.
Below are some of the industrial sectors that has been Implementing IoT for the desired purpose
Users are now looking forward to digital experiences for their vehicles so that they can align with the exclusive experiences that they have wherever they go. All the best in class features in your car is now possible with IoT and thus you can have the best riding experience. Automotive industry is getting smarter with the acceptance of technology.
The energy sector has to adapt this advanced technology in order to maintain a synchronized process throughout. Connectivity between the countless devices is now possible with IoT and thus the devices can share the information on a real time basis and this obviously helps more efficient distribution of the energy. Consumers, business owners and utility providers get their required information on a real-time basis that helps them plan the less consumption of energy.
Advanced technology is very much needed in the healthcare sector. Adapting IoT has truly caused the transformation for this industry. It has improved the remote patient monitoring, personalized treatment, and the best effective fact is that it is improving the outcomes along with lowering the medical costs.
There are enormous amounts of data that the manufacturers need to deal with on a regular basis. Those are related to equipments and suppliers mostly and an effective analysis of the data is of paramount importance to assure the growth of the industry. The right assessment of every data of the manufacturing value chain with the help of the IoT genuinely increases the efficiency along with keeping the productions running smoothly.
Retail is such a sector where people seek for personalized services only! By using the IoT, the retailers actually ensure personalized and immersive service for their customers and this keeps the shoppers coming back. So many details need to be gathered and maintained in an apt way and Intel and its ecosystem of collaborators are actually easing the effort of analyzing, understanding and extracting value out of it.
# Smart buildings
When it is about enabling smart approaches for your building, IoT can help you achieve the transformation. Intel and its ecosystem is delivering automated solutions for buildings in order to increase security and reliability. More so, this enables the architects to incorporate the full building with ecosystem.
# Smart homes
Now is the time to turn your home smart enough so that you can know easily know who is there at the door or is everything ok at the house. Embracing the IoT assures the making of your dream smart home into reality.
The year 2016 has already kicked off and the biggest buzz in the industrial sector in this year is Internet of Things (IoT). The benefits of IoT are being accepted across the industries like logistics, manufacturing, healthcare etc. And it is certain that this is going to be the biggest trend in the industrial sector for 2016.
Actually, in the year 2015, a number of companies had invested in Internet of Things for the improvement of their business and they have experienced the difference. So, this year they will invest even more for much better results. This is still an untapped area for businesses. The companies are gradually experiencing the benefits of data-driven decision making.
From smart to smarter factories
Smart factories are very much in trend now. Factories are getting smarter with the use of Internet of Things. A number of studies have revealed that factories and manufacturers are going to be the biggest benefactors of IoT having an economic impact of around 3.7 trillion per year.
When it comes to companies that have successfully adopted Internet of Things solutions, the name Stanley Black and Decker is sure to arise. In order to improve the transparency of its router production line and also to improve labor efficiency, Stanley created a Real Time Location System. This consists of an active RFID tag which is very small in size. This tag is attached to every material and it is accessed through WiFi. Now, this has made it easy for the workers, plant managers to know about the assets location and status in real time.
This RFID tagging is now being used in other industries as well. But there are still a number of companies to gain from this technique.
More efficient logistics
Other than factories, the logistics industry has also adopted Internet of Things. The Port of Hamburg is the biggest example of it. This is one of the largest logistics players. The port deals with 140 million tons of goods every year in 9 millions containers. With around 40,000 trucks arriving daily, ports authority was looking to increase efficiency through technology.
In a joint venture with SAP and Deutsche Telekom, they created Smart Port Logistics. This is a mobile business cloud system through which stakeholders are connected all the time. Information about every component in the harbor like trucks, containers, ships, people, and bridges is available to everyone. This has resulted in trucks are reaching at the destination faster, they know where to unload, actions on various other aspects can be taken real time.
Formation of new business model
Along with optimizing businesses, Internet of Things is also providing new opportunities for the businesses. Semios is one of the fine examples of this. They have used a network of video cameras, pest traps, pest repellent emitters to assist the farmers in timely evaluation of their firming field. Instead of hiring pest managers on a bi-weekly basis, they can now collect information about pest management on a daily basis through the Semios’ pest management system. This is less expensive and convenient.
Internet of Things is going to be the real game changer in the business field in the year 2016. Apart from the traditional businesses, this can be advantageous for the entrepreneurs as well. Anyone, capable of generating actionable insight from their IoT infrastructure can make their company run much smoother and smarter.
The manufacturing industry is going through massive changes over the past few decades. New technologies are being introduced in the industry for a long time but nothing became as happening as 3D printing production. Despite being in its infancy still, this has proved its inevitability in the industry. This has become the preferred choice of the makers. Commercial application has so far been restricted to prototyping but 3D printing production has revolutionized things completely.
Production of end-use parts in the manufacturing industry is growing rapidly after the appearance of 3D print production. According to a PWC survey, 11% of the companies have already opted for 3D printed products. The use of this method has dropped the production cost substantially and the duration of manufacturing has also reduced.
Here we will be talking about the 5 most prevalent use of 3D printing production in the manufacturing industry.
# 1. Quick prototyping: 3D printing process has been there in the manufacturing industry for the last two decades. The initial use was to create replicas of new design. This has ultimately quickened the prototyping process. In earlier days, it used to take weeks for the delivery of a single piece. But the situation has changed today with the help of rapid prototyping and obviously global shipping companies. You can even expect same-day production as well. With the earlier prototyping method, it used to take months but now the companies have been able to save lots of time and money with 3D printing.
#2. Rapid design time: This printing method has quickened the iteration process. In earlier days if engineers had to create a new mold to test an engine, it would take nearly 6 months or so. And the cost was also more than thousands of dollars. But now companies like Ford are 3D printing these molds within 4 days only. And would you like to know the price? It is only $4000. This massive reduction in the cost and production time has benefited the small companies to a large extent.
#3. Reduction in the production cost: On an average, the companies had to spend a lot of money in the creation of molds and tooling for the testing purpose before single end use. The cost was OK for the companies producing millions of parts but the idea was daunting for the small companies. But with 3D printing prototyping, even the small companies can survive the tough competition.
#4. Customization: 3D printing has brought the option of customization. Until a few years back, if you needed to replace your knee, you would have only 5 options. But now, in such cases, your knee is scanned first and then a perfect replica is designed for you. This is what is called customization.
#5. On demand manufacture: Manufacturing companies are creating multi-year supply of spare parts. They are producing parts in large quantities that can meet the demand for the next ten years or so. But managing the parts for such a long time is not an easy job. Factors like production capital, shrinkage, obsolescence, warehousing cost, insurance cost are there. So, it is simply ideal to print the products on demand. But with 3D printing production, it is possible to make what you need, when you need.
Right from the beginning of the previous decade to the around the end of it (2001-2008) a sharp growth was seen sin the manufacturing industry. The global economic expansion of that time enticed the manufacturing industry to invest for greater infrastructure. We all evidenced huge investments by this industry for the latest equipments and modern technology but the sudden crash in the global economy allowed them to come across tough challenges and the industry had to pay the penalties for that. However, this had slowed down the growth of the global manufacturing industry but couldn’t drag an end for it. This was a good sign!
Embracing the modern technology, the industry of manufacturing is paving the way for success and no room for denying the fact that this indeed is welcoming the economic growth. The critics are still not seeing any robust growth for the industry but the truth is that countries like – China, Russia, India, Brazil etc. are considering this industry as the prospect of the economic growth in the recent future.
The world of manufacturing industry is evolving rapidly with the help of technology. The application of technology has always played a very crucial role in shaping up the manufacturing industry. Now, as we have started a new year 2016, let’s have a look at the biggest manufacturing trends that companies will look at this year.
Presently is the age of global transformation and over the past few years, we have been evidencing changes in many aspects of our lives. To talk about its impact on the industrial sector, experts predict that manufacturing industry is going to witness a huge transformation in the near future. According to the annual Technology Landscape report by Citrix (an US-based software company), 2016 is going to be a watershed year for manufacturing industry and it shows evident signs of reinventions in different areas which include; automation, 3D printing, data analysis etc.
Experts have also explained that in the coming five years or so, a number of things are going to change! Things will get more customized and visually enticing. 3d printing along with simple electronics will take manufacturing to the point of consumption. But at the same time, they have also cleared that the breakthrough will come only when the customized part costs will be same for each unit so that million of the same parts are produced. 3D printing, print on new materials, increased affordability are some of the facts which will lead the final result. Now, it’s time to have a look at those important factors that will remain at the center of the revolutionary change:
General purpose robotics is now becoming more affordable and this is going to be one of the leading reasons for the reinvention of the industry. Inexpensive robots mean that now smaller manufacturing industry will turn to automation. This has a clear indication that from then on manufacturing job will shift around more intricate work which includes; maintain and train the robots and work on the optimizing manufacturing process.
However, this has raised the debate of sharp cur in the employment although the experts from Citrix believe that more investment on the robotics will not cause much of reduction in the employment instead, this will create new roles for the era of innovation and product development.
Globalization will play an essential role that has no doubt and the Internet-of-things will drive the industry to the verge of success. Experts believe that manufacturing industry will remain inevitably associated with data and that would need more streamlined and efficient operation that can be achieved with this significant approach.
Genuine research has revealed that IoT will connect more than 30 billion machines in 2020 which will create $1.9 trillion added value by that time. Furthermore, the benefits will comprise maintenance of machinery, supply chain visibility and most importantly – bridging the gap between production and corporate level.
Marketing and personalization
Even at the recent past, manufacturing and marketing were two separate industries while the former one used to develop products and the later one would pick those up for completion. However this requires no explanation that manufacturing needs to pay sincere attention to the marketing from the very beginning.
The companies are looking for ways to present their products in a distinguished approach and this needs personalization of their product’s manufacturing and packaging too. This would be an effective way to differentiate from competitors.
Running a business successfully or setting up a new one in the present time is really a challenge to all the business owners. While in one hand this involves lots of hard work and serious efforts, on the other hand, the cost of the entire process often plays the role of the key obstacle. And it is not always easy to overlook the costs of operating a business.
Some of the areas of any business that require the highest amount of investment include manufacturing cost, marketing and sales cost, administrative cost, establishment cost etc. Managing all these costs is important both for the start-ups and also for the existing companies. Failing to do so will hamper the reputation of your business and a new business will fill up the void. So, isn’t there any way out to manage all these costs and continue the business successfully? Yes, one of the most effective and tested way to cope up with these issues is to outsource the service.
Prompt Assembly & Packaging Inc.