Between two stools
Article Abstract:
Strategy expert Michael Porter developed the use of the term 'stuck in the middle' in a business context. There are two interpretations of stuck in the middle applicable to business: not to get stuck between two strategies, and not to get stuck between two market positions. Firms should have a single, clear strategy such as being a low-cost producer and go for high volume or being an upmarket differentiated seller going for high profits from niche markets. Firms should avoid being all things to all people and winding up pleasing no one. In the area of markets, firms should not become stuck between two groups of customers. Firms should either target down-market, achieving success though a high market share, or up-market, achieving higher profits through a niche marketing strategy targeting quality-conscious consumers.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1990
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Priorities for a profitable alliance
Article Abstract:
UK companies are discovering that establishing cross-border joint ventures are not necessarily the best way to enter new markets. Three hundred fifty-seven British firms were involved in such partnerships within the first three quarters of 1992, but very few of themsurvived. A KPMG Management Consulting study revealed that cross-border joint ventures fail primary because of insufficient knowledge of local regulations. The failure of these ventures can also be attributed to cultural differences and inadequate negotiating skills. To ensure success, partners in a cross-border alliance must ensure that they have common objectives, a clear communication structure, clearly defined strategic objectives, patience, and commitment to the partnership. The help of a joint venture specialist should also be enlisted.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1993
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