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The future !? – Identifying the way for small and medium-sized (SME) comp

We 'feel' the confusion:

- How shall we find the right direction for the company ?
- What kind of'recipes' works best for us ?
- Applying them, can we really 'be sure' to be on the 'right' track ?

... and much more ...

Yesterday is gone, however, tomorrow is the future and it cannot be 'projected' based on yesterdays' results - as more than often practised in the past.

Nowadays every country in the world is the 'play ground' for the more internationalized competition - whether we like it or not - and especially SMEs are confronted with subjects as: 'Globalization, INTERNET, Information-/Knowledge management, and so on. And these are no 'abstract conceptions'. They have to be defined for every new situation again and again - if needed, even daily.

That is totally independent from the 'normal' daily challenges of 'entrepreneurship', like best cost structure, leadership, production problems, financing the operations and much more.

Consequently, future isn't predictable - i. e. unknown - and we need 'auxiliary constructions' which help at least to identify and restrict the multitude of chances/ possibilities. 'Patented solutions' never exist.

The following questions resp. the answers found may help to manage these tasks:

1. Where are we positioned in the markets vs. international competition, who is this competition - per market-segment -, what do they do and where are those competitors possibly better/worse than we are ?

2. Which is the future direction of our customers and 'their' markets, where are possibly newneeds 'for them' and how do we fit into such scenario ?

3. How big are the market-segments for us in the most important markets/regions we cover already, do we fully penetrate them really and which areas/market-segments/ countries could furthermore be of interest to us ?

4. Which factors - having an influence on our customers and us - are important, how could such factors possibly develop in the future and which targets/needs do our existing customers have tomorrow ?

The answers do give on the one hand in many respects already a good idea of the market potential reached/not yet reached (= available market chances) and on the other hand a good idea regarding the marketing activities which have to/should be intensified as a result of this survey.

The future objectives for the company will, however, be influenced especially by the answer to question 4. (see above), as the external influences as well as their future markets affect our existance as well as new products. To find out these factors/ways is - depending on the size of the company - the duty of the owner, CEO, the marketing department, the field management or the local representatives .

Hence an important 'leadership task' as well as a question of identification of the personnel and representatives with the company.

The second question above is by far more complex as the number of - so-called available - 'recipes' still can be characterized as 'gigantic'.

They affect each and every 'cost factor' of the company, re-engineering, the whole marketing and its sales channels, but also the financing of the companies' tasks. Furthermore of importance are new technologies like the INTERNET as well as the companies' strategy, 'make-or-buy'-decisions, etc.

I am convinced that the time of 'patented recipes' is gone (Einstein said= "Imagination is more important than knowledge")- if they were at all available at any time - and each company has to develop/re-position itself on the home-/foreign markets again, mainly basing on the results found above.

A statement made by professor Kotler, USA, may be useful to initiate reflection:

'Companies pay too much attention to the cost of doing something. They should worry more about the cost of not doing it.'

Again a few questions the answers to which may be helpful for the individual company:

1. Are we customer-friendly, internally as well as externally, and is customer satisfaction really our first and foremost target ?

2. Does the client get all information referring to our products fast and unbureaucratic– most of them already via the INTERNET –, and did we communicate during this process also our special advantages/peculiarities compared to the competition ?

3. Does our cost-/quality- and service-level correspond to the clients' expectations ?

4. Can we easily be reached also by our international clientele and do we answer their questions without delay ?

Of course, these can't be all of the necessary questions. These - as well as further ideas - are finally too much depending on the individual company and thus cannot be generalized.

Still: Nobody can give you the assurance to have done the 'one-and- only' as the worlds markets permanently change. Customers are no more as 'affectionate' as in the past and every competitor looks/has to look for his specific advantage and wants increase business, as he is in exactly the same situation as we are.

We can, however, safely assume that we are 'on the right track' if the first questions have been clarified and the respective conclusions are drawn as well as action initiated and the last questions above have been answered in the affirmative.

And ... has the following been taken into consideration:

1. Have synergies and strategic alliances been included into the marketing activities in the home market as well as in foreign countries ?

2. Has it been arranged that we are permanently informed regarding new market activities, auxiliary conditions in the markets, competitors actions, client groups (= Information- and Knowledge management, also by means of the INTERNET) and any other company-specific issue of importance ?

3. Are all available marketing instruments used to inform and care for available and potential clients ?

4. Do we also possess of an internal ‚Corporate Identity‘ which means a frictionless cooperation between the employees and a 'One-for-All/All-for-One'-atmosphere ?

It is self-understood that even now no '100 %-solution' is given, however, we are no doubt on the right way.

The most important fact, however, remains that the entrepreneur examines permanently the company-specific environment, deals with the continuous changes and additions of the electronic marketing possibilities and eliminates international fear. He needs to develop an open mind towards world markets and thus understands and grasps the unlimited opportunities for his company again and again.

The international competition available today already in most home markets, as well as the need of most economies to strengthen international business doesn't leave any other/ better chance to the individual company.

It remains, however, the decision of the entrepreneur himself whether he cares for the steps needed using available internal sources (which may take more time than available) or gets the data needed for his decisions by outsourcing the tasks. The latter solution leads in most cases to a faster and more targeted solution as such people can concentrate more and are not distracted by the day-to-day business needs.

Most important: Act now and fast !!

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How can I assist you in reaching YOUR goals -- in Europe or anywhere else ? - please >> mail - or call +49-7371- 93210 - * Send page to a friend

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written by Michael Richter on 15.03.2006 at 11:39.

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