Competitive horizons

Citation

(2015), "Competitive horizons", Strategic Direction, Vol. 31 No. 7. https://doi.org/10.1108/SD-04-2015-0054

Competitive horizons

Article Type: General review From: Strategic Direction, Volume 31, Issue 7

Demand grows for information technology (IT) services in emerging East African economies

Adoption of information technology (IT) services in East Africa is rising substantially, the International Data Corporation (IDC) reveals. The global advisory services organization notes that emerging economies in the region are embracing IT solutions as a major part of their drive to increase growth and competitiveness. Greater investment in IT is evident in both public and private sectors, while the growing maturity of business environments is another contributory factor. As reported by http://www.allafrica.com, IT needs vary across different nations in the region. Common patterns are apparent too, though, including easier access to Internet provision. Demand for services has grown accordingly, although fundamental application and support accounts for much of this. However, larger firms and early adopters are, respectively, seeking more advanced solutions and cloud technologies to significantly increase scope for service providers.

Economy in India set to rise on world stage

India has the potential to become the third largest economy in the world behind the USA and China, according to a report published by the Deccan Herald (http://www.deccanherald.com). The claim is acknowledged as being somewhat premature at this stage, but signs are regarded as promising nonetheless. An improving climate for investment is cited as a key factor in the anticipated development that might see India overtake Italy and Brazil to take seventh place in the global economic table by 2017. The report also notes the possibility that the end of the present decade could see the nation surge further to go beyond the economies of France and the United Kingdom. India’s scope for growth is proposed to be greater than that of China due to the predicted increase in the size of its workforce. That the country is at an earlier stage of urbanization is likewise regarded as significant. To capitalize on such demographic advantages, however, it is suggested that India needs to improve its sluggish productivity.

Energy price concerns for UK food industry

A survey conducted by energy provider npower has identified major concerns about rising energy prices among food and drink manufacturers in the UK. Some respondents revealed plans to cut staff levels, while others had already shelved plans to recruit more workers. The possibility of moving overseas was expressed by 16 per cent of the 100 companies polled. As reported by http://www.foodnavigator.com, the government’s Electricity Market Reform (EMR) is considered responsible for much of the prevailing anxiety. Its effects could see firms paying around 10 per cent more for their electricity supply by 2020. Industry body Food and Drink Federation (FDF) recognizes the need to reduce greenhouse gases but warns that rising energy prices will stifle the ability of producers to invest in greener technologies and compete in foreign markets. Although FDF has increased the focus on energy efficiency management, the report argues that need exists for greater input from both the government and energy suppliers.

Key strategies to increase growth

Differentiation is seen as a crucial strategy to accelerate the growth of small firms, an article published by http://www.growingbusiness.co.uk claims. Many avenues exist to achieve this objective, but it often comes down to basics which include improvements to functionality or customer services. It is also important to view differentiation as an ongoing process that demands awareness of evolving customer requirements. Choosing to do business with the right people is also advised. This means ensuring that both customers and suppliers hold comparable values to your firm in respect of such as quality and reliability. The article recommends that growing companies should invest heavily in marketing but point out the need to properly understand different customers so that they can be targeted accordingly. Depending on the type of business, offering potential customers samples or free trials is considered an effective strategy for getting products noticed. But as this approach can mean lost revenues initially at least, it is critical that such promotions are properly evaluated to ascertain their effectiveness. Accelerating growth invariably demands significant capital investment, so organizations seeking to implement expansion plans must identify appropriate external sources to attract potential equity partners.