Page 245 - GLOBAL STRATEGIC MARKETING

Unit 11 – International Niche Strategies for small to medium enterprises (SME’s)

knowledge across national borders open up possibilities for a new
business. Born global firms will often seek partners that complement their

own competence because of their limited resources. Factors giving rise to
the emergence of born global companies and explaining why such
companies can successfully enter an international market (Hollensen,

2001, p. 67) are: the increased role of niche markets; advances in
technological process and production; the flexibility and adaptability of

small companies and the global network and advances in information
technology. The focus of the next unit is to explore the role of technology
for all sizes of organisation as this can lead to a competitive advantage in

the highly competitive market place.

11.6 Part of the supply chain

Many SME’s are part of the supply chain of another organisation.
Component manufacturers (car, mobile phone, and electrical goods
markets), suppliers of raw materials (sugar, coffee beans, cocoa beans,

grains, cereals, fabrics) and end products such as Bionade piggyback on
the supply chain and distribution chain of other organisations such as

MCCafe and Starbucks. Bionade are clever in the fact that the company
does not solely rely on retailers (as mentioned previously). It relies on
many segments of the market. So, if Starbucks were to discontinue selling

Bionade in its coffee shops the company has other segments of the market
to rely upon.

11.6.1 Limitations

There are many limitations for the SME and it needs to monitor new

competitors in the market-place in terms of direct and indirect competition.
Like any other market-oriented company, scanning and monitoring the

environment is crucial for SME’s as well as monitoring consumer and
market trends that may have an impact on the organisation and its current
strategy; especially for organisations that do not have a unique product

and are part of another organisation’s supply chain. This is a risky strategy