By Seung Ho Park, Gerardo R. Ungson, Andrew Cosgrove
This ebook provides a framework for a unique form of ecocnomic progress for multinational businesses in rising markets: "scaling the tail." This version makes a speciality of really good marketplace niches, flanking specific segments and product-categories, constructing deeply nuanced localization ideas, and fitting supportive administration structures.
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Extra resources for Scaling the Tail: Managing Profitable Growth in Emerging Markets
4 In Ohmae’s conception, the variations out of the standard transistor radio manufactured by Sony Corp. gave rise to televisions, cameras, computers, and various peripherals. Perhaps the modern application can be gleaned by the array of new versions of Microsoft’s Windows and other related operating systems. The advantage of product extensions is the familiarity of consumers with the basic brands, which reduces the costs of creating market demand for entirely new products. It is important to note, however, that straddling the curve still centers the application on the main product or brand, even if newer market segments arise from subsequent applications.
The logic of scaling in manufacturing did not translate as well as scaling in marketing or merchandising (retail). What accounts for this misplaced assumption? 14 Without a thorough understanding of the changing trends in competition and consumer tastes, a firm can blindly follow an existing growth strategy that would lead to disappointing market performance. After a second round of field interviews with top managers selected in collaboration with EY, it was apparent that a profound change was underway in emerging markets.
Gale, The PIMS Principles: Linking Strategy to Performance (New York: Free Press, 1987). For a reassessment, see P. Farris, M. J. Moore, and R. Buzzell, The Profit Impact of Marketing Strategy Project: Retrospect and Prospects (Cambridge: Cambridge University Press, 2004). 7 R. D. Buzzell and B. T. Gale, The PIMS Principles. P. Farris, M. J. Moore and R. Buzzell, The Profit Impact of Marketing Strategy Project. Also see F. T. Knickerbocker, “Oligopolistic reaction and multinational enterprise,” International Executive, 1973.