Competitive horizon

Citation

(2007), "Competitive horizon", Strategic Direction, Vol. 23 No. 5. https://doi.org/10.1108/sd.2007.05623eab.001

Competitive horizon

A report published by the Asia Times (www.atimes.com) predicts that 2007 will see continuing strong growth in China’s auto market. Last year, output and sales of over 7.2 million were recorded, helping China to become the world’s third largest auto maker and the second biggest market for new car sales. In 2007, sales are expected to increase by another 15 percent. The report claims that government initiatives, increased production capacity and effective marketing are chiefly responsible for the robust growth within a market that still boasts huge potential. Despite the rapid expansion of the market, car sales are mainly concentrated in the largest cities and those in coastal areas, and the market remains untapped in central and western parts of the country and in smaller cities elsewhere. A related survey suggests that China will enjoy half of the new consumption in the world’s auto market during the next ten years, not least because falling management costs and production may help drive prices down further to make cars more widely affordable.

How US retailers can improve sales

Retailers in the USA who make the effort to turn store browsers into buyers can enjoy a significant hike in sales, an investigation conducted by Deloitte & Touche reveals. The consulting firm claims that converting just 2 percent of browsers leads to a 10 percent sales increase. To achieve this, retailers need to improve customer service by ensuring that sales assistants are more knowledgeable and on hand to deal with customer enquiries. The survey also indicated that stores that were difficult to navigate and had long payout queues were also a turn off. The report, as published by Business Week (www.businessweek.com), urged retailers to focus on these issues and to improve stock availability. In a different study, AMR Research found US consumers disenchanted with slow product turnover, which can be up to eleven months in the clothing, footwear and home furnishings sectors. In contrast, some international competitors are able to get their products to market within weeks. According to AMR, US retailers can shorten time to market by forging closer ties with producers and suppliers, and by exploiting the latest technology to better manage their supply chains.

Towards outstanding leadership

An article published by Score (www.score.org) points out that leaders should strive to grant employees the freedom to make their own decisions as much as possible. Better creativity ensues if the leader establishes a target then allows the employee to choose how to get there. However, this practice will only occur when leaders accept that their role no longer concerns rank, power or money but is now about responsibility and guidance. The report also points out the need to make employees feel their contribution is valuable and important, which can be aided by aligning employee objectives with those of the business. A leader adopting such practices can expect motivated employees and a vibrant workplace, with better service to the customer a likely outcome.

Kenya set for continuing tourist boom

Following a 12.6 percent increase in 2006, Sub-Saharan Africa is set to lead the way in world tourism growth this year. According to a report published by All Africa (www.allafrica.com) Kenya will continue to be one of the region’s main growth drivers in an industry that the United Nations World Tourism Organization (UNWTO) expects to grow annually by 4.1 percent up to 2020. Tourism in Kenya has benefited from the improved marketing and promotion that has emerged through closer links between government and private sector, and from joint investment from the Kenyan government and the European Union (EU). The report notes that future promotional activities will concentrate on strengthening existing markets, while at the same time focusing on the development of domestic tourism.