Entry of Facebook Inc. into China

Executive Summary

The core purpose of this paper is to examine the efforts made by Facebook to enter China’s internet technology market. The paper has started by examining the non-market issues by providing an explicit explanation of why it is a potential problem or opportunity for Facebook. The arena, especially the political forums where the identified issues can be addressed, is another area of concern. Additionally, the key actors and interests, information, and assets for each actor have been examined. The possible outcomes if actions to improve the bargaining position of the company are not taken are also predicted. The appropriate strategies, both market and nonmarket, have been constructed and the discussion of the tactics to implement such strategies to secure the best outcome for the firm have been provided, given the constraints faced. In conclusion, Facebook Inc. needs to address several issues such as ensuring user’s human rights and countering the competitors in the Chinese market.

Entry of Facebook Inc. into China

This paper aims at investigating the entry of Facebook Inc. into China and the effect it has had on the users in the country. No doubt, Facebook is among the internet technology companies that have gained popularity globally. Recent research indicates that many people are currently using Facebook internet forums for interactions with friends and family (Muncaster, 2012). There have been increased concerns on how the entry and popularity of Facebook have become a potential problem or opportunity for this internet technology organization. As such, this paper examines the information, interests, and assets of the key actors with regards to the company’s current position in China. Most importantly, Facebook’s entry into China has called for the construction of the market and nonmarket strategies, which need to be implemented to ensure its outcomes are secured in the best way possible.

Issue

Most internet technology organizations including Facebook Inc. have been blamed for the negative effects they have on the wellbeing of the people because of their recently developed censorship tool (Technical News, 2016). Notably, the internet services provided by Facebook have been blocked in the recent years resulting from different human rights issues. For instance, there are claims that the personal information of the internet users has been subjected to censorship and surveillance and, thus, compromising their human rights and privacy. As such, the Human Rights Watch (2011) raised concerns that the company needs to disclose to the public the plans it had concerning how it would safeguard users from any form of online cybercrimes infringing their personal information. Additionally, the popularity of this firm has come with the issue of the wellbeing of people being affected by the daily interactions with their friends. Thus, this situation has required the company’s effort to ensure personal accounts and messages are safeguarded.

Actors, Interests, Information, and Assets

Actors

The first actor is Facebook Inc. whose aim is to enter China market as another opportunity for growth. Additionally, the Chinese Government plays a role in setting laws and policies to govern the content posted on the social media platform provided by Facebook. Additionally, the presence of the local companies like Baidu.com indicates the competitive force that the company needs to tackle to do well in China. Lastly, the Human Rights Watch has been another actor that has kept the track of whether the internet technology companies protect the human rights of the users.

Interests

First, the company has an interest in expanding its market by connecting people worldwide, including China. Facebook has spent time to understand and learn more attributes concerning China given its great diversity and difference in culture from the West. On the other hand, the Chinese government has shown interest in accessing the information of Facebook Inc. overseas to confirm the claims that it does not control the contents people post. Also, most of the users of social media have chosen the internet services offered by Facebook than other internet service providers. The Chinese users comprise the target customers of Facebook. Moreover, Facebook Inc. has shown an interest in partnering with Baidu.com to enter the Chinese market. Finally, the Human Rights Watch has been interested in the content censorship by Facebook Company.

Information

Although many people use the services provided by Facebook globally, there is no clarity on how it will offer protection to the human rights of the users including the Chinese Citizens. The only approach that Facebook can use to get into China is through the Chinese government because of its power to regulate the content on social media (Horwitz, 2016). Thus, the company’s entry in this nation can be successful if the government authorities are involved. Facebook has allowed for people to exercise their rights of freedom of speech online. Conversely, Baidu is the local company that has been rated the most heavily utilized search engine in China; however, it aggressively censors the content. Moreover, the Human Rights Watch has raised concerns about how Facebook is going to safeguard the rights of its users in many nations including China. This group suggests that firms like Facebook need to put in place effective policies as well as procedures that protect human rights online. It also holds that the policy helps in ensuring that the firms respect human rights of the customers and users.

Assets

The key asset that the company in question has is the censorship instrument that helps in the achievement of its entry into China market. Facebook also developed software that makes sure the posts are suppressed from appearing in the news feeds of the users in certain geographies. Facebook has also spent a lot of resources to study the country’s dynamics. In addition, the government policy and laws on social media constitute the greatest asset for the country. It has been noted that the company can access, share, and also preserve user’s information to address the legal request since they are made aware of what the law needs them to do. Also, the information of the users is the company’s asset that needs to be protected. Facebook is targeting Baidu.com because of its popularity among the local companies. The greatest asset that Human Rights Watch include its ability to ensure the companies offer protection to the rights of the users of their services.

The Political Forums where the Issue is Likely to be Addressed

The company’s effort to enter China relies on several arenas that must be dealt with for its marketing plan to be successful. Most importantly, the arena to be considered is the political forums where the issue is likely to be addressed. The issue surrounding the entry of the company has encouraged government criticism based on the fact that the censorship in China permits it. Notably, the government of China, influenced by political leaders, has designed a program that limits the Chinese people’s freedom of speech as a way of addressing the issues associated with censorship resulting from social median (MacKinnon, 2012). This program is important for the government since it helps it reduce the incidences of the people criticizing the poor performance of the company on social media. In effect, the government of China has come up with a collective action potential, which only allows people express themselves collectively.

This company makes it possible for people to communicate on the social media on a common subject, and particularly the actual collective actions including protests and the events that can lead to any form of collective action. In this case, the “Great Firewall of China” has been used by the government to disallow some websites to operate in the company (MacKinnon, 2012). As an illustration, Facebook has been blocked in China, and thus, RenRen became a substitute, though has not been available. Additionally, keyword blocking approach has been suggested by the government to prevent a user from posting the texts that bear restricted phrases or words. The situations depict that foreign firms in China, including Facebook encounter political pressure from a variety of regulations. As a matter of fact, the military newspaper of the nation refers to the internet as the most vital front in an ideological battle opposing the “Western anti-China forces” (Technology News, 2016).

The media has also played a critical role in spreading rumors that Facebook has created a platform for many cybercrimes to take place and also viewing of the content that is unacceptable such as pornographic materials. Such allegations have led to the organization’s struggle in the recent years where it has been reported that Facebook eliminates some content on its service unfairly and thus posing human rights issues to its users (Muncaster, 2012). In spite of this situation, the company aims at continuing to grow in the developing nations including China where its penetration has been smaller.

Bargaining Context

Notably, there is an increasing concern about a bargaining context existing between Facebook and Human Rights Watch, where the latter has warned the former that it could turn out to be complicit in government censorship. In a similar vein, the efforts of both have been believed to stifle online organization as well as obtaining the personal information of online critics or cyber-activists of the Chinese government (Muncaster, 2012). For instance, the company has been in contact with the Human Rights Watch concerning the letter, which was sent to the firm to respond to the concern of the way it will protect human rights online in China like any other part of the world. Further, the entry of Facebook into China calls for an effective bargaining process between the company and the Chinese government as well as the local firms like Baidu.com. The information provided indicates that the entry and survival of Facebook depends on the government policies and regulations governing the content of the internet technological firms with a view to protecting the human rights of the users. The Chinese government has required that Facebook says publicly how it intends to protect the human rights of the people prior to entering the Chinese market (Horwitz, J. (2016). Additionally, the bargaining process between Facebook and the Chinese government started right from the time Facebook was blocked with allegations that protection of the user’s information was not guaranteed. On the other hand, the organization intends to enter a partnership with local companies like Baidu.com. This partnership has resulted from the Chinese government’s requirement that the domestic firms should partner with the foreign companies in the formation of local counterparts.

Nonetheless, the services provided by Facebook may be threatened by the presence of the competitors who are already established in the China such as “WeChat.” Most Chinese citizense have utilized this form of social media for communication as well as making purchases, booking appointments with doctors, and hailing taxis, and thus, it is difficult to avoid “WeChat” while making any entry strategy. However, it requires little effort for Facebook to make “WeChat” come to its knees. In this case, Facebook only requires to capture a small portion of the largest Internet market in China to generate reasonable revenue to outperform any other social media service provider in the nation (Technical News, 2016). No doubt, the domain in which Facebook operates cannot allow WeChat to thrive in a competitive market. In other words, Facebook is a global identity while WeChat only stands out in China. 

Range of Outcomes

The outcomes predicted in this context seek to improve the bargaining position of the company in China. First, the company has predicted its growth in the developing nations where there are smaller rates of penetration at the moment. In this connection, it has been asserted that Facebook may enter new international markets where it is limited or no experience in selling, deploying, and marketing its products, and thus its continued efforts to purpose entering China. Additionally, Facebook’s entry into China will result in the world being more connected and open. This argument gains support from the fact that connectivity is important in spite of the sacrifices that have to been made along the course of the participation in the Chinese censorship (Horwitz, 2016). The company will be well established in the country considering the fact that it will provide a platform to address the legal concerns that have been raised on its need to safeguard the human rights of the users in the China.

Strategy

Zuckerberg reveals the intention of the firm as connecting people around the globe as a greatest strategic element by using its advertisement platforms (Technical News, 2016). Facebook plans to develop software whose aim is to help the third party in monitoring trending information online. The company also capitalizes on the extensive opportunities that is present in China, although this has not been fully exploited (Muncaster, 2012). Additionally, the organization’s interest has been to enter new international markets, it has limited or no experience in selling, deploying, and marketing of its products, like China. The firm’s focus is currently on assisting the Chinese businesses as well as the developers to expand to new markets in and outside China by utilizing its advertising platform.

Another marketing strategy is the company’s ability to counter its local competitors who have proved to be fierce in the country including social networking sites such as Sina, Tencent, and RenRen (Muncaster, 2012). For instance, Sina has attained most of the parts of China and the neighborhood because of its microblogging service called Weibo. Also, Facebook has considered partnering with the China’s largest tech firms like Baidu to aid the marketing of its product. Additionally, product development has been another marketing consideration that Facebook has utilized, where new software that allows a third party to keep the track of the popular stories, as well as topics, has been developed (Muncaster, 2012).

Moreover, its nonmarket strategy also plays a critical role in the company’s decision on its entry in China. One of the key strategies of this category is the compliance with the Chinese government’s regulations regarding the security of the user’s human rights. In this case, Facebook has resorted to complying with the government’s policies concerning the content on the social media platforms (Horwitz, 2016). Also, the strategy of the firm borrowing from the playbook of Chinese rival has created more opportunities for Facebook to enter China market.

Conclusion

There are increasing concerns about the recent efforts by Facebook to enter into China as a new opportunity for its global market expansion using social media as one of its verticals. It is worth noting that China has the largest market for internet technology organizations like Facebook. Nonetheless, there are challenges that company must face to makes its entry to the country. Such challenges include its inability to safeguard the human rights of the users, government regulations on the content posted on the social media platforms supported by the company, and the competition from the already established local firms that provides the social networking sites, such as RenRen and Sina. Therefore, it is important for the company to address these aspects to successfully enter the Chinese social media market. 

References

Horwitz, J. (2016). The only way Facebook enters China is as a tool of the government. Retrieved from https://qz.com/644588/the-only-way-facebook-enters-china-is-as-a-tool-of-the-government/

Human Rights Watch, (2011). Facebook: Safeguard users before entering China market: a critical step to avoid abetting a crackdown on dissent. Retrieved from https://www.hrw.org/news/2011/06/03/facebook-safeguard-users-entering-china-market

MacKinnon, R. (2012). Consent of the networked: The worldwide struggle for internet freedom. New York, NY: Basic Books.

Muncaster, P. (2012). Facebook’s IPO unveils plans to invade China: Social network would love to tap that. Retrieved from https://www.theregister.co.uk/2012/02/06/facebook_ipo_china_plans/

Technical News, (2016). Facebook builds censorship tool to attain China re-entry: NYT. Retrieved from

http://www.reuters.com/article/us-facebook-china-idUSKBN13I03H

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Project Quality Management

Project Quality Management

Several arguments have been put forward towards the claim and literature that quality product and service provision forms the core of a firm’s or a company’s competitive advantage. Critical arguments with baseline on the thought that initiatives for product and service quality that several firms undertake are the cornerstone of gaining competition power globally. In the supply chain and other business settings, quality is recognized as the primary driver behind successful competition power and therefore, this has rendered several organizations to take product quality as prime concern to gain competition advantage (Lakhal, 2009). What remains debatable is whether it is true that quality provides organizations to be competitively at par with other firms. The key importance of quality in firm are cost benefits, competitive advantage, innovation and delivery dependability among other benefits.

However, some researchers would suggest that quality does not form the core of gaining competitive advantages. Why would someone argue in this direction? Such arguments are formed on the basis of the norm that producing quality service may be the only factor that would favor sales and hence competitively making such firms superior. I would suggest that gaining market competitive advantage entails just more than quality. A number of factors should be considered. It is therefore better to define competition advantage as it sets a firm to gain large market control through commodity production or service delivery at a lower and favorable cost than their counterparts.

There is enough evidence to support the claim that quality service and product delivery by a firm is a first means of gaining customer loyalty. Quality of service and product to customer is one critical aspects to consider in drawing loyalty and satisfaction of the customers. In the twenty first century, organization are solely dependent on decision making. The importance of quality in an organization is sound in several ways.  For example, under normal situations, quality of service or product implies consistency of the customer. In most cases, customers are satisfied in case their first purchase is of quality and meets their demands. However, the only situation that inconsistency may pop in is when quality improves. This is argument is based on the assumption that going below the defined or initial quality standards puts the business at risk of losing customer loyalty and consistency in running business today ((Lakhal, 2009).

Moreover, quality is a broader term that includes management competencies and cost benefits analysis. Under normal circumstances, an organization is termed to be economically advantaged if it has the best management team to drive quality production of services and products at lower costs than their competitors. This clearly justifies that a firm with good and quality management will ensure them earn competitive advantage in the market. To run business in the twenty first century, I would recommend that management consider and give priority to quality in order to be competitively well off in the market by setting proper rates and working smart.

However, despite the fact that competitive advantage in the market in terms of cost, loyalty and market control solely lie with what level of quality a firm maintains, some scholars will tend to counter-argue that quality does not imply competitive advantage. Why would such argument be semi-valid? This argument can be backed with several evidences. For example, quality provision of quality and services are always target at achieving loyalty and trust of customers.

In general, it is valid to claim that ensuring quality in an organization through quality product and service provision is key in gaining competitive advantage in the market. Even in the twenty first century, market competition all lies with quality management, service and products, as well as cost effective production to be better placed in terms of competition with other market parties. I strongly believe that quality is key in driving firm competitive strength in a market. Also, in terms of cost of management and production, quality defines effective cost-production as producing services and products at relatively lower cost than the competitors. I therefore staunchly believe and support that argument that quality is key is attaining competitive advantage over other firms or organizations in similar product or service market. In addition to quality of service or products, quality encompasses other factors such as management competencies, quality work and consistency in a particular market.

 

 

 

 

 

 

 

 

 

 

 

 

Reference

Lakhal, L. (2009). Impact of Quality on Competitive Advantage and Organizational Performance. The Journal of the Operational Research Society, 60(5), 637-645. Retrieved from http://www.jstor.org/stable/40206780

INSURANCE AUSTRALIA GROUP STRATEGIC MANAGEMENT

The paper’s main analysis will involve looking into operations of the Insurance Australia Group (IAG). The company is headquartered in Australia and has operations in seven countries around the world. The business offers both consumer and business insurance in different market segments that include vehicle insurance, home insurance and compulsory third party insurance among others. According to the company’s website, it underwrites over $11.4 billion of premiums per annum. The company has over ten brands under its name. These are considering its main markets of Australia and New Zealand in addition to the joint ventures that it has with other insurance companies in Malaysia and India.

There are two customer facing divisions of the company. These are consumer labs, which is responsible for setting strategies on consumer experiences and driving innovation in products that are geared towards consumers. The other division is the operations division, which is responsible for a number of operational function such as supply chain and for processing claims. This structure was built based on recent restructuring that was aimed at increasing its focus on customers and data (Hitt, Ireland & Hoskisson, 2007). This also marked the shift in the company’s focus towards increased utilization of data and a more customer centered focus.

The international operations of the company are in New Zealand and Asia. The Asian operations takes into consideration the company’s growing operations in Malaysia, Vietnam, India, Indonesia and Thailand. The operations of the company are broadly categorized into three. These are for both direct business and with intermediaries in these areas of operations. These are the Australian operations, the New Zealand operations and their Asian operations which involves operations in five countries. These are Malaysia, India, Vietnam, Indonesia and Thailand. In the case of the Australian division, there are two main divisions as pointed out. Support for these divisions will be achieved by the customer labs, digital labs and operations units of the company. These units will act as the backbone of the company’s main customer facing divisions.

Figure 1: Corporate Structure of IAG

Source: https://www.iag.com.au/iag-announces-new-structure-and-leadership-team

According to the company’s latest financial results, the business unit with the greatest revenue has been the Australian Business Division. This is with a 0.3% increase in the Gross Written Premiums to $1,423m. This is above that of the New Zealand division which recorded $1,128m and the Asian division which recorded $182m in Gross Written Premium. The Australian division also had the highest insurance margin of the three divisions with 14.1% insurance margin. This performance also matched the higher of the investment margins that were experienced in the three divisions of the company.

There are a number of factors that may have contributed to this performance. One of which is the realization that the Australian division still remains the largest of the three main divisions of the company. The division has the more recognized brands of the company and hence provides it with the most in regards to returns on invested capital. There is also the realization that there was a greater number of premium claims from the New Zealand division. This may have limited the profitability of this division thought it experienced an increase in the GWP quarter on quarter.   

There are four criteria that inform sustainable competitive advantages. These are summarized as capabilities that are valuable, rare, costly to imitate and non-substitutable. Valuable capabilities allow firms to exploit opportunities that arise in their markets and also present them with the ability to neutralize the threats that are posed by other players in the market. Rare capabilities are those that are possessed by only a few if at all any of the company’s competitors. The discussions point to the realization that rare capabilities provide companies with valuable opportunities that they may exploit to remain ahead of the competition (Hafeez, Zhang, & Malak, 2002).

Costly to imitate capabilities are those that may not be easily developed by other companies. This is due to their expensive nature. This particular aspect may be achieved due to three main factors. These are from capabilities that are developed from one are regarded as unique historical conditions. These are capabilities that are built over the years of operation of the company. This is of greater impact with where companies have been able to cultivate the right organizational culture over time.

The second aspect of a costly to imitate capability lies in having a casually ambiguous competitive advantage. This limits the ability of competitors to replicate the particular aspect of a company’s competitive advantage due to their inability to understand what provides the company with the competitive advantage that it has. Social complexity is a third aspect of capabilities that are costly to imitate. This is a competitive advantage that is gained from social interactions of the company in areas such as better customer service, trust and friendships (Hitt, Ireland & Hoskisson, 2003).

The final capability for sustainable competitiveness is non-substitutable capabilities. These are capabilities that may not have strategic equivalents. The harder the capability is to imitate, the greater the sustainable competitive advantage that a company gains. The Australian division is able to leverage on these four factors in different ways to acquire the competitive advantage that it currently enjoys in the Australian insurance segment. It also able to use this in leveraging its position in driving the investment income that it gains from its operations ((Lubit, 2001)).

The other area of competitive advantage that the Australian division has is in regards to its size. As a large company operating within the insurance space, the company has a greater advantage in regards to securing their clients. This is an aspect that is realized by most clients and hence enables the company to market itself as a secure provider of insurance products as compared to some of its competitors. The second competitive advantage lies in the brand equity and awareness that the company has been able to build over the years. Brand equity is an intangible asset to the company that has provided it with the ability to capture new markets and clientele. These two aspects have provided the basis by which the Australian division has been able to increase the number of clients it has and the amount of money that it receives as part of its premiums. As the largest general insurer in Australia the Australian division is able to leverage its size to generate more premiums.

Diversification lies in the ability of an organizations to increase its revenue sources from a single business that is competing with other players in a single market and into other products or market segments (Lu & Beamish, 2004). This provides the company with multiple income sources that are then able to provide some cover for the company against any downturn in any one of their areas of operations. IAG may be said to have a related constrained diversification. Related constrained diversification occurs where there are distributed linkages, products and technologies that are shared across all businesses though a large part of the revenues are generated from one main dominant operation. This may be unrelated in cases where the links across businesses are limited (Rajan, Servaes & Zingales, 2000).

There are two dominant revenue streams that IAG relies on. These are the underwriting of insurance. This is the main operations of the company and it endeavors to ensure that the company is able to finance its other operations (Denis, Denis & Yost, 2002). The second revenue source comes from the investments that the company makes. The sustainability of the company’s operations are gained from the positive return that the company can gain from the investments that are made by the float the company has. This is by the utilization of the difference between the company’s premiums and payouts for any given year. The management of this particular aspect of the company’s operation is not dependent on any one particular division, but is spread across the company’s various brands (Sadler & Craig, 2003).

There are various factors affecting the company’s external environment that are worth considering. This consideration will be based off the PESTEL model. These external factors are those regarded to constitute a company’s operating environment. These are largely external factors that have an impact on a company’s strategies, choice of activities and its operations (Yuksel, 2012).

Political

There are various geo-political actions in the markets in which the company operates that affect their business environment. These are especially in considering the Asian markets where the company operates in. One such issue was with the uprisings that occurred in Thailand in the recent past. These have the potential of affecting the company’s operations in the country and thereby affecting the company’s overall profitability and return. It is therefore prudent for the company to consider the impact of such issues in the development of their strategies. The impact of this may either be a reduction in the underwritten premiums or may be an increase in the payouts that the company makes while it pays for the cover it provided its clients with.

Economic

The global economy is experiencing a slowdown in the recent past that may affect the growth of the company. This has been greater among commodity producers in Asia and Australia as a result of the downturn in prices of commodities. This may therefore have a reducing effect on the company’s overall revenues and profitability growth going forward. The downturn may also have an adverse effect on the investment income that the company may get to enjoy. It is therefore prudent that IAG should develop methodologies that consider the economic environment as a risky factor.

Social

There are two main levels of concern that would be considered in regards to the social aspects of the company’s operational environment. The first of these is the changes in the company’s client base. The company needs to shift some of the focus that it has in regards to its target market to include the younger population. Some of whom may not be so inclined as to take on insurance in certain regards. The other social aspect that the company would need to consider is that of using social media as a marketing tool. This is as opposed to the previous practice of using traditional media sources such as print and television media.

Technological

The use of social media may also be regarded as a technological concern. This is in regards to the increasing shift in the technological arena. One of these changes is through the increased spread of social media as a communication tool and increasingly as an advertising avenue. This has been embraced by different companies in regards to their marketing efforts in a drive that seeks to reach more audiences. This has also seen the increasing shift of advertisement towards mobile based platforms. This is those that rely on social media avenues.

The second aspect of technological change that has affected the insurance industry is that of big data. This is the increase in the amount of information that is available to different players in the business world. There has also been a shift in computing power that has increased the ability of firms to process this information. This has enabled companies to improve on the service they offer. It also provides insurance companies with the opportunity to mitigate some of the risks that they face, through improved information collection, dissemination and actions.

The other aspect of the technological landscape that is worth pointing out is that of companies that are regarded as fintechs. These are technology companies that operate within the financial market segment. These companies have the potential to change the business models of insurance companies by challenging some of the models that insurance companies operate under. It is therefore prudent for IAG to consider this as a threat to their operations and develop proper mechanisms by which to mitigate the negative impacts that may be posed by these companies (Freeman, 2010).

Environmental

There is one aspect of the environment that insurance companies need to consider. These are in areas of adverse weather conditions that have the ability to increase the payouts that they would have to make in dealing with loses steaming from natural calamities. As an insurance company, IAG has also insured against weather damage. These have the impact of causing a great deal of damage in cases where they occur. This is especially important for the company due to its growing insurance business in Asia, which is seen as the company’s future growth area. This is because of the company’s maturity in the New Zealand and Australian market.

Legal

There are multiple regulatory environments that IAG operates within. This is occasioned by their status as a multinational corporation. This is due to the company’s operations in different nations. This therefore increases the need for understanding these regulations and operating within them in the different markets. The challenge that the company may face in this case is in regards to their small operations in the Asian market. This has spread their risks but has also increased the costs of the company in regards to maneuvering through the legal requirements of the five nations that it operates in within the Asian market.

Three strategies that inform corporate level strategy decision making include mergers, acquisitions or downsizing. The best strategy to adopt is based on prevailing operating environment conditions and the impact of either of these strategies on the corporations’ bottom line. Mergers may broadly be regarded as the creation of a single business entity from two or more businesses units or operators. Acquisitions on the other hand refers to the takeover of the operations of other companies, which are in most instances smaller to the company that is making the acquisition. Downsizing on the other hand broadly refers to the reduction in the size of a company. This may be achieved through the shedding of jobs or the selling off of units or assets. There are various ends that a company may wish to achieve with the different types of strategic action (Aragón-Correa & Sharma, 2003).

The one that is proposed in this case is more in line with a downsizing than it is with regards to a merger or an acquisition. At this particular point the greatest advantage would be gained in regards to merging some of its Asian operations. The company has been able to make multiple strides in different countries. Some of these have been achieved through the partial acquisition of different companies. One challenge that this has created is in regards to building their own brands in these countries. This is as a result of the partial and at times minority interest and stakes that the company holds in these nations. It is therefore considered prudent to develop a strategy that would take into account this aspect and minimize the inherent complexities that are created by the current ownership structure (Farjoun, 2002). The company should therefore seek to limit the amount of acquisitions that it is making in these markets and focus more on growing their current operations in these countries. 

The second aspect that would be achieved by this particular move and that would aid the company in terms of improving profitability of their operations in these countries, is the reduction in costs that the company would endure. This is due to a reduction in the multiplication of employee tasks. Such reductions in costs would also be experienced by a shift in the marketing that the company would have had to undertake for the various brands and business units that it has under its umbrella in the different localities (Cole, 1997). It is to be understood that this particular level of downsizing may not be achieved across the entirety of its Asian business. It may only get to occur across a specific number of business units where synergies can be achieved.

The other area of strategic shift would be an increase in the adoption of technology. The company’s shift into technology as of 2015 has provided it with a great number of benefits. This trajectory needs to continue and also be improved upon. This is by increasing the level of testing, adopting and integration of technology into the company’s daily operations. Among these include the creation of better data analysis processes and practices. There is also the aspect of improving on the current marketing efforts of the company (Vanhaverbeke & Peeters, 2005). This is through the use of mobile based platforms as opposed to traditional print, television and radio media. This in no way discounts the continued use of traditional media sources as advertising channels.

References

Aragón-Correa, J. A. & Sharma, S. (2003). A contingent resource-based view of proactive corporate environmental strategy. Academy of Management Review, 28(1), pp. 71-88.

Cole, G. A. (1997). Strategic management: theory and practice. London, Thomson Learning.

Denis, D., Denis, D. & Yost, K. (2002). Global Diversification, Industrial Diversification, and Firm Value. The Journal of Finance, 57(5), pp. 1951-1979.

Farjoun, M. (2002). Towards an organic perspective on strategy, Strategic Management Journal, 23(7), pp. 561-594.

Freeman, R. E. (2010). Strategic management: a stakeholder approach. Cambridge: Cambridge University Press.

Hafeez, K, Zhang, Y. & Malak, N. (2002). Core competence for sustainable competitive advantage: a structured methodology for identifying core competence. IEEE Transactions on Engineering Management, 49(1), pp. 28-35.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2003). Strategic management: competitiveness and globalization. Mason, Ohio, South-Western College Pub.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2007). Strategic management: competitiveness and globalization; [concepts and classes]. Mason, Ohio [u.a.], Thomson South-Western.

Lu, J. & Beamish, P. (2004). International Diversification and Firm Performance: The S-curve Hypothesis. Academy of Management Journal, 47(4), pp. 598-609.

Lubit, R., (2001). Tacit knowledge and knowledge management: The keys to sustainable competitive advantage. Organizational Dynamics, 29(4), pp. 164-178.

Rajan, R., Servaes, H. & Zingales, L. (2000). The Cost of Diversity: The Diversification Discount and Inefficient Investment. The Journal of Finance, 55(1), pp. 35-80.

Sadler, P., & CRAIG, J. C. (2003). Strategic management. London, Kogan Page.

Vanhaverbeke, W. & Peeters, N. (2005). Embracing Innovation as Strategy: Corporate Venturing, Competence Building and Corporate Strategy Making. Creativity and Innovation Management, 14(3), pp. 246-257.

Yuksel, I. (2012). Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), pp. 52-66.

The Paradise Lost (Chapter 6)

The poem is an evident impression of what happened when Satan needed to assume control in God’s kingdom. Raphael proceeds with his account of the main clash amongst Satan and the Father. Once more, Raphael signals that he should figure out how to relate the war in wording that Adam will get it. Raphael comes back to his story with Abdiel, who stands up to Satan and the other revolt divine messengers and discloses to them that their thrashing is impending. “Roll’d inward, and spacious Gap disclo’d”  He leaves the supporters of Satan and is invited once again into the positions of God. “Not to destroy, but root them out of Heav’n” He is pardoned by God and adulated for his reliability, compliance, and resistance of wickedness (Milton, John, and Alastair, 64). God delegates Gabriel and Michael the pioneers of Heaven’s armed force, which is legitimately comprised of just the same number of blessed messengers as Satan’s armed force.

Presently, the two sides set up their military. The two armies line up in full perspective of each other, sitting tight for the flag to assault. Satan and Abdiel square off in the center; they trade affront, and after that blows, and the fight starts. Both sides battle savagely and equally until Michael, the co-pioneer of the great holy messengers, bargains Satan a blow with a surprisingly broad and threatening sword (Milton, John, and Alastair, 66). The sword cuts through Satan’s whole right side, and the defiant spiritual messengers then withdraw with their injured pioneer.

“Down from the verge of Heav’n, Eternal wrath” Satan’s armed force discloses the Amery for the following day and shells the greatly blessed messengers. The exceedingly divine messengers end up off guard as their protection turns into a block to their escape. Michael, at last, gives an answer: the exceptionally divine messengers get mountains and move them to the war zone to cover the revolt divine messengers and their gunnery (Milton, John, and Alastair, 70). The revolt blessed messengers should gradually uncover themselves from underneath the mountains and reassemble. Dusks, and God chooses that there will be no battling on the third day and that the war should now end. He conveys his Son the following day, who charges through the adversary positions on an extraordinary chariot and drives them from the war zone.

“Her dark foundations, and too fast had bound”. The war in Heaven is presumably planned to be perused as a similitude, embodying otherworldly lessons in an epic situation so that we (and Adam) can comprehend what matters to Raphael (Milton, John, and Alastair, 72). The story unquestionably contains lessons that Raphael needs Adam to gain from. One of the ethics of the war in Heaven is that insubordination prompts a man’s getting to be plainly oblivious in regards to reality. Satan and the revolt blessed messengers feel enabled by their new choice not to submit, yet their resistance to God renders them frail. Satan and his armed force never appear to understand the worthlessness of their insubordination (Milton, John, and Alastair, 82). Satan rouses himself and his troops to increasingly insubordination. However, their proceeded with disappointment and continued with any expectation of triumph show the blinding impact that their pride and vanity have created.

 

Conclusion

The entire content is a representation of the scriptural stories that Milton chose to make them all the more alluring to the reader. The style of the fight does not take after the fighting of Milton’s day, yet rather the first struggle of former legends. Milton introduces the warring groups each agreeing with their lances and shields over a war zone. Milton presents this disparity in methods of fighting to suggest his general public’s headways over those of the established age. Satan’s innovation of the gun is a sudden improvement, flagging Milton’s conviction that black powder is an evil creation and that supposed progressions in war are pointless and useless.

The Paradise Lost (Chapter 9)

“His entrance, and forewarn’d the Cherubim” Milton starts Book IX as he began Books I and VII: with a conjuring and request for direction and also a correlation of his errand to that of the colossal Greek and Roman sages, the Iliad, Odyssey, and the Aeneid. Milton clarifies by a method for this conjuring Adam and Eve’s fall is the momentous occasion that happens in Paradise Lost. Their fall is the ballad’s peak, despite the fact that it does not shock anyone. By depicting the fall as disastrous, Milton passes on the gravity and earnestness of this disaster for all of the mankind (Milton, John, and Alastair, 853). However, he likewise arranges Adam and Eve’s story inside the artistic traditions of catastrophe, in which a remarkable man falls as a result of a single blemish inside his overwhelming character. The fall makes ready for humanity’s ultimate reclamation and salvation, and hence Milton can guarantee that his epic outperforms Homer’s and Virgil’s since it relates to the whole human race, not one legend or even one country.

Milton taunts the noble sentiments of the Middle Ages because they hail utterly shallow chivalry. The possibility of the gallant warrior was an ironic expression in Milton’s view. Milton shows his saint as an ethically capable individual—Adam’s quality and military ability are completely immaterial (Milton, John, and Alastair, 857). Milton voices questions about whether his general public will welcome a true Christian legend, or whether he is as yet sufficiently talented or youthful enough to finish his general assignment, adjusting his trust in his capacity with the modesty fitting to a Christian artist.

“Found unsuspected way. There was a place”  “Satan involv’d in rising Mist, then sought” Satan’s arrival to the story presents him as a changed and further deteriorated character (Milton, John, and Alastair, 860). Before the allurement of Eve, we see Satan experience another piece of soul-looking. This time, be that as it may, he doesn’t falter in his assurance to demolish humanity, however just makes a frosty articulation of disappointment for things that may have been. Milton takes note of that Satan is headed to activity by the melancholy and turmoil he feels inside and by his injured feeling of pride. It is evident now that Satan’s choice to degenerate humanity is last, yet regardless he contemplates how he would have delighted in the magnificence of Earth if he had not revolted. “Most opportune might serve his Wiles, and found, The Serpent subtlest Beast of all Field” (Milton, John, and Alastair, 868). Milton shows the inner desolation that outcomes from the transgression of gloom: Satan can unmistakably observe, notwithstanding all his past contentions, that it would have been exceptional to stay great. Notwithstanding, he has illegal himself from thinking about how possible it is of contrition. Accordingly, he deteriorates further and facilitates, making his brain and body his very own Hell.

Conclusion

Milton has given supreme energy to the reason and choice of both men and Satan, just to demonstrate that the psyche can vanquish itself—utilizing motivation to land at an untenable position. Satan’s musings are progressively conflicting and befuddling, winding up plainly hard for us, and maybe for himself, to take after. Satan comes to trust his particular flawed rationale and his falsehoods. In Books I and II, his capacity to reason is reliable, however now in Book IX, he can scarcely shape a sound contention. Incidentally, Satan has demonstrated the reality of his prior explanation that the psyche can make a paradise of damnation or a hellfire of heaven. Satan expected to make a Heaven out of Hell, where he would be a detestable rendition of God. Rather, he has carried his torment with him and made a hellfire out of the earth that, however for him, would be wonderful.

Works Cited

Milton, John, and Alastair Fowler. Paradise lost. Pearson Education, 2007.

 

Critical Thinking – Case Research

Case Research

Following instructions may be a statement that may be taken lightly, often when the consequence has not been experienced, to be specific, when a catastrophe has not been observed. However, what many people do not observe is that all laws are tagged along with their equivalent consequences. The consequences may be positive or negative (Mann, 2011). The positive consequences are accompanied by following the law while the negative consequences result from disobeying the law. Although most people may be intending to disobey the law, the consequences may not rely on the ignorance of the law offense. This research presents a case study in which Mr. Bilbo Baggins risked to cross the Toll bridge in search of the One Ring, despite of the notice that cautioned the persons seeking to cross the bridge to be aware that the liability is limited to one thousand gold coins, in case of any injury suffered.

However, Bilbo crosses the bridge but unfortunately breaks the arm. As a result, the cost of the injury demanded a liability of two thousand gold coins. To this effect, the owner of the bridge was willing to pay one thousand gold coins.

Basing on the instructions given by the owners of the bridge, it is fair to pay a tone thousand gold coins. However, according to the human rights, human life is sacred and should be treated with dignity (Mann, 2011). The cost of life should not be based on the notice. Moreover, the bridge serves to secure human life. Disregarding to secure the man who breaks over his arm is subject to violation of the human rights. On the other hand, the owner of the bridge deserves justice. The owner must have assessed the risks of crossing over. Owing to the liability provided, the owner should be given a hearing to defend his stand beyond the notice.

References

Mann, J. (2011). Health and human rights. American journal of public health.

 

Language Development and Teaching Oral Language

Language Development and Teaching Oral Language

Oral language development is mostly considered as a crucial illustrator of a child’s reading abilities. For a large number of children, the development of oral language is a natural process, largely influenced by home literacy and experiences encountered in school.  The following essay will discuss in details evidence-based information regarding the major factors of literacy about the development of oral language.

Relationship between Oral Language and Literacy in the Primary School Years

The base upon which literacy is built is for a long time said to be oral language. Marking from the day of birth, kidsare introduced to a setting that has effects on their literacy and language results since involvements in school and with their parents shape the development of their language. Children who are exposed to favorable environments and increasing complex conversations have an upper hand in the creation of vocabulary, having a clear perceptive of the components of language, and mastering the sounds of their language. As children involve in these early engagements, they are subjected to different language elementsthat will truly improve their literacy development (Biemiller, & Boote, 2006).

Oral communications enhance the vocabulary comprehension of children, with their achievements in literacy being strongly correlated to the number and mixture of words that they hear. The massive development of vocabulary that happens between two and six directly affects the reading ability of children later in life. Kindergarten kids with vocabularies that are receptive tend to have good listening understanding, identification of words and reading understanding in their education.

Engaging with users that are good in language offers kids an opportunity to utilize their developing vocabulary and diverse language compositions. As children get exposed more in school, they learn unconsciously learn of grammar as they gain familiarity with combining words correctly into sentences and phrases. Comprehension of syntax is significant since exposing the children to the multifaceted structures in sentences assists them to understand stories and can read on their own.

Oral language facility also creates a good comprehension of the pragmatics of language. It comprises the rules for proper communication in different scenarios and different motives. Pragmatics ensures that one is good in providing explanations and telling stories, types of discourses applied extensively by teachers (Dickinson, Golinkoff, & Hirsh-Pasek, 2010). Most books have narrative as their extended communication. Hence, having a good comprehension of the narrative form is crucial for written composition abilities, reading understanding and for listening. Recent research also revealed that there is a relationship between children understands of the narrative model and phonological knowledge, suggesting that processing in general wants support both in phonological knowledge and in the composition of oral narrative.

Much of what is known on language development in the early years of children is gotten from a study that observed the development of language of 42 children from the age of seven months to three years.  They discovered that the children’s development rates of vocabulary, and coefficients of intelligent quotient at the age of three, were related directly to the rate of talking of their parents. To study their academic performance in school, the children were traced nine years later. It was found that vocabulary usageat the age of three positively correlated to the performances at age nine in vocabulary, reading comprehension and language skill.

Aspects Of Language That Are Foundational To And Facilitative Of Students’ Literacy Learning

                             Phonological Awareness

It defines the capacity to concentrate on the sounds of the language being spoken and not the meaning. As children are subjected to the language in their surrounding and know to talk it themselves, they get used to the phonological system: patterns of intonation, the rhythm, and the sole phonemes that create the words. The context arises from the oral language, the path and the chance for phonological abilities and skillfulness to be nurtured (Konza, 2014).

To be in a position to read, children need to know what a ’sound’ is in connection to the talked language. They need to understand that an uninterrupted flow of words can be broken into single words likely to be separated into a single or several syllables, and that single sound makes the syllables. The importance of the phonological constituents for literacy knowledge is understanding of the specific phonemes or sounds or what is known as phonemic awareness (RICHGELS, 2004).

Research reveals that phonemic awareness of preschool children predicts perfectly their future reading ability well compared to intelligence or socio-economic status. It is difficult for some children to break vocabulary to view them as a chain of different syllables since the structure of the speech which is unbroken compresses them into a sequence of sounds that overlap (Konza, 2014). If children are unable to hear the different sounds in words, they will be unable to relate the sounds of speech and print images. This acts as a massive stumbling obstruction in an alphabetic language when it comes to learning how to read and spell.

Oral languages offer a platform upon where phonological skills can flourish. It is significant that teachers comprehend the connections amid oral language and successive reading advances to be able to help improve the oral skillfulness of the students, but specifically, the special one whose skillfulness are not as progressed as their colleagues. Ignoring or not comprehending the importance of oral linguistic in this situation puts the ability of kids becoming free readers at risk.

Vocabulary

Decoding letters into words is not important if the words lack significance. Vocabulary understanding is a crucial constituent of literacy.  It is learned as a result of being repeated to fresh words in discussions repeatedly. Diversity in children has varying results from learning through the indirect channels. Young children exposed to a vast and rich vocabulary either in school or at home will gradually know the meaning of many words and highly competent language users who are in a position of absorbing new words easily. Besides, they are in a better position of acquiring reading skillfulness early and hence can start to read on their own and create an even better vocabulary that will be of great significance to them (Konza, 2014).

Young children from poor literacy surroundings will be exposed to a far more limited choice of words, have limited accessibility to books, chances are high they will have challenges obtaining the expertise of reading, and less opportunity to apply their reading abilities to create their language.  Disadvantages will increase as more platforms of creating language, and world comprehension is limited to them. Poor performances by children having limited access to vocabulary reveal the connection amid oral linguistic skills and language, and the function of language growth in the reading aspect.  Depending on vocabulary is not all that is needed to assist minimize the rift in children from different backgrounds. However, direct instruction is significant for vocabulary learning, and this is necessary if kids from the less privileged environments are going to make fundamental achievements in this field. Direct instruction of vocabulary has been identified as one of the major ways of improving the vocabulary growth of all children. It is in primary school that students are presented with a good opportunity of developing their knowledge of words in as many contexts as possible.

Fluency

Proficiency in literacy calls for fluency in oral linguistics. Fluent reading seems confident and effortless because shows the complex processes that the reader has endured to reach that point (RICHGELS, 2004). Fluency is transforming and effectual on the reading method because it represents that point where the element skills are highly integrated and programmed such that total cognitive energy is availed. Students gain fluency through learning to read, and this effort is transformed into reading to learn. Done research shows that there are fluctuations in the relationship between oral language skillfulness and fluency. Fluency is directly related to language understanding and phonological awareness in preschool, but as time goes, it draws largely on vast language skillfulness like control over varying grammatical constituents that supports the correct forecast of forthcoming words. Hence, the invasive impact and involvement of oral language are present as an element of literacy.

Letter-sound knowledge

Moment kids know that words are separable to sounds, it is important for them to know the connection between the letters and the sounds. During the decoding process, they gain their awareness and comprehension of the sentence framework from their vocabulary, to assist them establish the combination of words that are suitable. Through this, children’s knowledge in literacy enhances decoding. When children identify the syllables that merge to create a word, they will practice merging that sounds together (Barnsley, 2012). This will be beneficial to the kids because it helps them understand at preschool level how the process of reading and writing works. Teaching using this method proves to be more efficient in creating both comprehension and reading correctness compared to the other methods, specifically for children from backgrounds that are not rich literate.

In Class Activities

            Involving the students in different activities that will assist them in put into practice the things that they are taught theoretically will be very important. The following is a discussion of some of the in class activities that can improve the literacy skills of the students.

Teaching Text Structures Activity

Text structure plays a crucial role in recalling and comprehending texts. Direct instructions from the teachers concerning the text structures will benefit students, specifically those struggling with reading. Recent research shows that explicit text structure instruction enhances primary students’ comprehension (Dickinson, Griffith, Golinkoff, & Hirsh-Pasek, 2012).  In a six-week intervention incorporated in guiding reading instruction, students learnt a compare/contrast text structure while reading expository texts. Students in the treatment condition showed an improved conceptual comprehension of the compare/contrast structure and produced more structured summaries of expository paragraphs. This evidence suggests that teaching text structure helps children improve on their literacy skills.

 

Engaging Students in Discussion Activity

Identifying that comprehension is a dynamic and a shared strategy of creating meaning, educators that assist in reading comprehension use discussions in the classroom to assist students work together to extract understanding of the texts that they read. Research shows that teachers who use higher order questioning when discussing with the students in the classroom enhance students to participate actively in the discussions (Konza, 2014). Moreover, studies reveal that text-based discussion that emphasizes collaborative way of thinking increases the level of reasoning and overall reading involvement compared to recital styles of communication.

Integrating Reading and Writing Activity

Present comprehension in literacy illustrates that reading and writing equally strengthen each other and are dependent on some of the cognitive processes are applicable in both. This approaching suggests that instruction can be more effectual in the classroom when teachers incorporate reading and writing experiences. Study validates that excellent teachers who create high-achieving readers and writers incorporate the two fields often and comprehensively in the classroom (Konza, 2014). In addition, as evidence of a significant bidirectional correlation between reading and writing, student’s writing skills have been shown to forecast later reading comprehension and reading comprehension has been proven to forecast student’s composition abilities.

Storytelling

            This activity involves narrating a story again in the classroom after the teacher narrates it to the whole class. This activity is enjoyable and offers the students an opportunity to learn about decontextualized language and narrative speech. Storytelling is of great importance to the student because it exposes them to narrative syntax and vocabulary that they were unfamiliar with. In addition, storytelling gives the students an opportunity to construct meaning from the comprehension they have listened to. Retelling a story ensures that the students use diverse pragmatic and phonological elements like tone, intonation, pitch and volume to show the real meaning in a resolute way.

References

Biemiller, A., & Boote, C. (2006). An Effective Method for Building Meaning Vocabulary in Primary Grades. Journal Of Educational Psychology, 98(1), 44-62.

Dickinson, D., Golinkoff, R., & Hirsh-Pasek, K. (2010). Speaking Out for Language: Why Language Is Central to Reading Development. Educational Researcher, 39(4), 305-310.

Dickinson, D., Griffith, J., Golinkoff, R., & Hirsh-Pasek, K. (2012). How Reading Books Fosters Language Development around the World. Child Development Research, 2012, 1-15.

Fielding-Barnsley, R., Hay, I. (2012). Comparative effectiveness of phonological awareness and oral language intervention for children with low emergent literacy skills. Australian Journal of Language and Literacy, 35(3), 271-286.

Konza, D. (2014). Teaching Reading: Why the “Fab Five” should be the “Big Six”. Australian Journal of Teacher Education, 39(12).

RICHGELS, D. (2004). Paying attention to language. Reading Research Quarterly, 39(4), 470-477.

 

 

Competition_in_the_Dutch_Flower_Markets

Introduction

There are several reasons why most business entities fail in the market apart from market competition. Most of the failures arise when business entities do not employ effective marketing strategies as well as employ up to date marketing strategies which in the short and long term can greatly affect how they perform in the global market. Kodak is one of the global company that has been seen as failing in the market because of poor marketing strategies. In the case study it is reported that the Dutch flowers auctions has failed in the market not only because of the stiff market competition from tele flowers auction but also because of poor marketing strategies.

There are many reasons why different business firms fail in the market which in the long run affect how they perform in the global market. Dutch flowers auction is one such an example that failed just because of poor strategies in the market. Before the introduction of other players in the market it was estimated that two of the Dutch flower auction collected a lot of revenue and reached many consumers in the market. With the introduction of other players in the market like the Tele Flowers Association, they experienced a drastic fall in their revenue as well as lower earnings as compared to tele flowers association which recorded 100 growers and 160 buyers. This showed that it was either the Dutch flowers auction were not using the right or effective strategies to counter their rivals in the market or the consumers and the growers were not attracted to their end products and services.

The first major reason why the Dutch flowers auction failed in the market was their lack to use current market strategies like information technologies and innovate new ideas in the market. This was also a major problem regarding Kodak which had myriad of patent digital photography. The company did not embrace much of the technology which eventually led to its demise from the market. For the case of the Dutch flowers auction mostly used natural gas which was considered expensive by their rivals who on the other hand used low cost energy. Consequently they faced stiff competition from their rivals who were mostly coming from Spain, Kenya, Colombia, Israel and India. When the Dutch flowers auction still grappled with high cost of land, increased environmental regulations and trends in politics to subsidies the prices of natural gas their competitors had low costs of labor, low or few environmental regulations and lower trade tariffs that could hinder them to market their products and services in the market. In the world it is believed that harvesting and the eventual utilization of natural gas is quite expensive as compared to other green sources of energy. For Dutch flowers auction to be fully competitive like their tele flowers auction they have to use other sources of energy which are comparatively cheap in the in the market and at the same time offer higher productivity.

The adoption of outdated technology in the operation led to the decline of most of the Dutch flower auction. The use of outdated pricing methods which took time to respond to the needs of the consumers and at the same time favoring the growers over the buyers led to many consumers opting to purchase their rivals products and services. The pricing method also limited the buyer from making some important decision regarding the products and services. The pricing also increased buyer competition which was considered by many buyers as not convenient to them. There were improper and imperfect information that went against the buyers and in favor of the growers. The pricing also required physical presence of the growers and the buyers so that they could purchase their desired products and get their services. On the other hand their competitor used digital platforms to set the prices of their products and services. These platforms did not favor any set of groups and was considered as effective and efficient. It did not require physical appearance to buy and purchase the products but rather the buyer could purchase the products anywhere around the country as long as they could access the information technology gadget. The Dutch flowers auction also saw their fortunes dwindling in the market because of the sophistication of the consumers who favored products that were modified, manufactured with the latest forms of technology, bought the products in bulk and purchased products in different parts of the globe. These services could only be offered by the rival companies.

Another reason that majorly led to the failure of the Dutch flowers auction in the market was their inability to meet the expectations of their clients. Buyers and the growers more often expected the transactions numbers to burgeon by separating the prices of the products from the location. Instead transaction numbers decreased per since buyers and growers had to physically specify the terms of delivery. This greatly reduced their overall yield and productivity in the market. For instance in a case where the auction had predicted to transact 45% of the potted plant supply they only managed to a supply of 10%. Their marketing strategy in like product promotion was not also not very effective. It is believed that the poor marketing strategy of their products led to the buyers purchasing their sample products which they believed and perceived  were of high quality as compared to the rest of the products even though all the product were of the same quality and type.

Lastly the government of Netherlands did not offer incentives and other financial benefits to the Dutch flowers auction which eventually impacted on the business clout or power in the market. It is reported that the incentives to the growers and the buyers did not materialize. Growers did not receive any form of compensation for the modification, packing and delivery of products that could have fitted with the taste requirements of the buyers. On the other hand, there were no economic and financial benefits that could motivate the buyers to purchase the products in large quantities. Instead the pricing methods always favored buyer’s purchases on a low quantities.   For any company to be successful, they must offer economic benefits to the customers like incentives (Chalioti & Serfes, 2017).

Most of these market failures by the Dutch flowers auction can be remedied through the use of effective market strategies. The first major strategy is the use of effective information technology and innovation techniques to allow for modification of products and at the same time appeal to the clients (Hooley et al, 2017). The use of online marketing strategy that is capable of reaching millions of consumers in the market is one of the ways that the Dutch flowers auction can employ. Improved digital pricing that does not favor anyone and does not require physical appearance of both the grower and the buyer can reduce the time and money taken in the bidding section (Zeriti et al, 2014),. The use of digital platform will increase the net productivity and yield of a business firm. This was seen by how consumers readily accepted the tele flowers auction and were impressed with the computer information and data, quality of the products and the delivery time of the products. It is also reported that most buyers were very much comfortable with the innovations in the information technology especially as they improved the quality of flowers. They could get all the information from the computer and purchase using the computer. 

Conclusion

For market competition to be successful the rival company must employ current technological advancement in the production, strive to employ innovation and understand the market fully. Online marketing strategies that are aimed at reaching many consumers should be employed like enterprise resource enterprise techniques.

Reference

Chalioti, E., & Serfes, K. (2017). Strategic incentives for innovations and market competition. International Journal Of Industrial Organization, 52427-449. doi:10.1016/j.ijindorg.2017.03.004

Zeriti, A., Robson, M. J., Spyropoulou, S., & Leonidou, C. N. (2014). Sustainable Export Marketing Strategy Fit and Performance. Journal Of International Marketing, 22(4), 44-66.

Hooley, G. J., Piercy, N., Nicoulaud, B., & Rudd, J. M. (2017). Marketing Strategy and Competitive Positioning. Harlow, England: Pearson.