Business Adaptation, Essay Example

Introduction

The harvard business review interview with matt eyring(eyring, m. 2011) entitled “a new model for emerging markets” provides insight into adapting traditional business models to the particular environment of emerging markets.  This adaptation is, in reality, a re-thinking of how companies should approach developing, selling and distributing their products to markets in which they do not normally do business. Instead of developing their products, companies often only “tweak” the price, the product or the marketing.

Analysis

Matt eyring suggests companies should set aside all previous assumptions and start from scratch.   This involves not focussing on the product but analyzing the consumer need or gap in the market.  An example is providing affordable luxury or aspirational products to the emerging middle class in the bric countries.  After researching the target customer, companies should then go on to conduct business r&d by considering cost reduction, enhancing features, appropriate pricing and distribution channels etc.  This will allow them to optimize available opportunities, i.e. Tosell less for more, rather than less for less.

As an it manager, this model means that adapting existing hardware and applications to emerging markets may not be as simple as it has been historically.  Adaptation of hardware and software to different types of consumers has always been modular in nature, partly in order to gain maximum profits from minimum investment in r&d.  However, the fact that it in all its forms is a tool that enhances business performance and personal quality of life, may mean that completely re-thinking it business models is unnecessary.  This is borne out by the rapid expansion and success of it companies’ products and services in emerging markets in africa and other  third world countries.

Conclusion

If adaptation is considered necessary, i would interview potential end users to discover what they would find useful and what innovations would improve business performance in the markets to be targeted.  Research indicates that it managers india have found more success in “radical innovation over incremental innovation (adaptation)…even though competitive advantage may rest in adaptation.”(sen, t. K. 2012)

References

eyring, m. (2011, january 18). President, innosight. (harvard business review interviewer)

K. Sen, p. G. (2012, november 3). Journal of technology management & innovation vol.6 no.4 santiago dic. 2011. Retrieved from journal of technology management & innovation: http://www.scielo.cl/scielo.php?pid=s0718-27242011000400003&script=sci_arttext