BRANDING CAPABILITY OF TECHNOLOGY BORN GLOBALS
(BUSINESS AND TECHNOLOGY)
The article “Branding capability of technology born globals” provides significant information about ‘Born globals’. “The born globals are young and small or medium sized organizations with limited resources” (as specified in the article). As per the article, “born global firms are earning twenty five percent (25%) of their sales from abroad in less than three years from the establishment of the business of the company”. The article specifically discusses about the born globals involved in technology business. It explains how the brand value is created in markets, business-to-business and business-to-consumer. It discusses the procedures, policies and strategies followed by born globals to develop their brands and establish the same at an international level. The article is important because it lays down some important facts about policies and strategies used by new organizations, which in my view will be helpful for further research about fast development of international brand name by such organizations, in the early years of the establishment of the business by a company.
Source: Article “Branding capability of technology born globals” by Liliya Altshuler and Veronika V. Tarnovskaya - 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 3, 212–227
(BUSINESS AND TECHNOLOGY)
The article “Branding capability of technology born globals” provides significant information about ‘Born globals’. “The born globals are young and small or medium sized organizations with limited resources” (as specified in the article). As per the article, “born global firms are earning twenty five percent (25%) of their sales from abroad in less than three years from the establishment of the business of the company”. The article specifically discusses about the born globals involved in technology business. It explains how the brand value is created in markets, business-to-business and business-to-consumer. It discusses the procedures, policies and strategies followed by born globals to develop their brands and establish the same at an international level. The article is important because it lays down some important facts about policies and strategies used by new organizations, which in my view will be helpful for further research about fast development of international brand name by such organizations, in the early years of the establishment of the business by a company.
The article
mentions how an international brand is created by born globals on the basis of
technological competitive advantage without spending huge amount of money on
the marketing of the brand. The findings
of the article are supported by the study of “Danish technology (named as
ICEpower), an independent subsidiary of Band and Olufsen Group”.
“The born
globals basically rely on intangible knowledge based capabilities of the firm”
(as specified in the article), followed by firm’s ability to make appropriate
mergers and partnerships, which are in the benefits of all the merging firms,
the combined product of the merger or partnership and the brand name of the product. According to the article, the other factor
affecting the brand image of the company is its vision laid by its
founders. The vision of the company
should be clear towards the company’s objectives, its product and the company’s
brand name which in turn, helps to build strong technological competitive
advantage of the company in the market. As
per the article, the above strategies and policies to be completely successful,
must be supported by appropriate marketing activities, undertaken by dedicated
personnel of the firm by communicating appropriately, according to the different
demands of two different markets, business-to-business and business-to-consumers.
Implications for practicing
managers
The
article clearly states that small or medium sized organizations, who are young
with limited resources, can build an international brand name immediately after
the start of the business in two separate markets, business-to-business and
business-to-consumers. It further,
contributes by stating the steps to be followed by the company, at the
beginning of the establishments of the business to fulfill the aim of creating
international brand name in the early years of business. It adds that large marketing campaigns
involving spending of huge amounts of money is not always required. I am sure, this article is very helpful for
practicing managers believing in risk taking and dynamic sudden innovations
because it enhances the knowledge about the importance of the brand image for a
company and the possible strategies and policies to be followed to build strong
brand name with limited resources.Source: Article “Branding capability of technology born globals” by Liliya Altshuler and Veronika V. Tarnovskaya - 2010 Macmillan Publishers Ltd. 1350-23IX Brand Management Vol. 18, 3, 212–227
Because it is so easy nowadays for companies to reach global customers, small businesses should look abroad soon after starting up a company. If they were to only concentrate on their regional market, they possibly could lose out on sales and revenue. By focusing on the global market, the new firms instantly add millions of potential customers and this influx of customers allows new firms to erase start-up costs faster and easier.
ReplyDeleteI agree that new firms can reduce their start-up costs by entering global market following a proper strategic plan.
DeleteI like the point where it mentions that it is not always necessary to spend a lot of money for marketing campaigns and especially if the company is fairly new it will be hard for them to spend that kind of money for the marketing campaigns. Moreover if the international brand can be created on the basis of technological competitive advantage without spending huge amount of money on the marketing of the brand that will give competitive advantage for that company in comparison to other new companies.
ReplyDeleteI agree that if the company has reputed brand name, it is not required to spend lot of money on marketing campaigns.
DeleteI think this article is helpful for any business with limited resources. The author suggests that these types of businesses can be successful at startup by focusing on a global strategy. In my opinion, the global strategic perspective is a good start if the business is wanting to expand through networking. For example, the author uses mergers and partnerships as a strategic move for development of the brand image, which in turn, allows each company to take advantage of each other's capabilities. By partnering with others, the company will be able to offer customers new goods or services without having to supply or buy a different set of resources for their development. This would also help reduce the amount of expenditures necessary for Research and Development since the new products are probably a combination of two products/services that have already been used previously.
ReplyDeleteI completely agree that a company, either existing or new, should have an appropriate global strategy to achieve and sustain success in business, in this competitive world.
DeleteGlobal firms have an advantage of reaching more places for sales and business than regional firms. By the very virtue of the firm being global, it can has not ability to expand and be known to more customers or people. Awareness can boost sales and increase business providing long term benefits to both the firm as well as the customer. this becomes a two-way symbiotic association for both the firms and the customers making processes more efficient and effective for the most part hence improving quality of business in general.
ReplyDeleteI agree, it’s a two way process, the company not only needs to be aware of consumer demand but also needs in-depth understanding regarding the same. On the other side, the awareness among the consumers regarding the company and its brand products is important for increase in sales as well as long term successful business of an organization.
Delete