Three Core Competences and Product Architecture Strategy: Case Studies of Indian Markets

By Park, Young Won | Management Review : An International Journal, Winter 2014 | Go to article overview

Three Core Competences and Product Architecture Strategy: Case Studies of Indian Markets


Park, Young Won, Management Review : An International Journal


INTRODUCTION

Shortly after the global financial crisis in 2009, the world economy was deteriorating on a global scale. Nevertheless, since 2010, it has recovered gradually. However, this recovery process varied distinctly according to the countries and regions. The International Monetary Fund (IMF) forecast of the world economy in April 2011 indicated that the growth rate of the world economy in 2010 increased by 5% over that of the previous year following a record-0.5% decrease in 2009. The gap of economic growth between the advanced and emerging economies further widened since 2011, and the imbalance in growth in various forms is rising.

Emerging markets show fast economic growth and the speed of change among income groups is rapid. The accelerating growth rates of middle-income groups are transforming the economic structure from a pyramid shape of poor nations of the past to the diamond structure of advanced nations.

According to Japanese Economic Industry Bureau Statistics, the total number of households in Asia that have annual disposable income between $5,000 and $35,000 was 140 million in 1990, 220 million in 2000, and 880 million in 2008. This reflects the rapid growth of middle-income groups from China, India, and the Association of South East Asian Nations (ASEAN). From a global perspective, the large share of middle income groups is distributed in these areas. With rapid economic growth and increase in customer base, these economies hold amazing purchasing potential for new products and services.

Product strategy for these emerging economies requires linkage competence that combines technology competence for high functionahty quality -performanee - driven products and customer competence for high customer needs, lifestyle, and values-based products (Park and Hong, 2012). The obvious obstacle for advanced nations' global firms to penetrate emerging markets such as BRICs is customer competence. In particular, many Japanese global firms have relatively high technology competence through their long product development experiences for customers from North America and Europe that expect high quality, functionality, and safety of their products.

In contrast, these global firms experience patterns of business that are new. Comprehending different customer needs and translating them into successful products is the key for strategic positioning in these emerging markets. To enhance customer competence in the emerging markets, these global firms need to develop customer experts with sensing capability and who can utihze information technology (IT) infrastructure. For business"tO"Consumer (EHo-C) product markets, it is important to assess what particular types of products customers prefer to purchase through direct customer visits and marketing research in retail stores. The size of demand in B-to-C consumer markets is directly proportional to the increase of personal incomes. The growth rate of business-to-business (B-to-B) markets (i.e., intermediate industrial goods) corresponds to keeping up with the economic growth of emerging economies, while the purchasing pattern differs by regions.

For meaningful examination of these research questions, we employ case studies of Japanese firms in the context of emerging markets. Firms that participate in the case studies are carefully chosen to study the framework to show relationship between core competences and product architecture strategy. Case findings suggest that successful global firms build linkage competences to satisfy customer needs in the emerging market.

RESEARCH MODEL

Three Types of Core Competences and Global Expansion Strategy

In 2000, Malcolm Gladwell introduced Tipping Point: How Little Things Can Make a Big Difference. This book became one of the bestselling books for years. This book illustrates the idea of linkage competence in the daily context of American life. Malcolm Gladwell (2000) focuses on three types of people that play prominent roles in making particular ideas or concepts to spread like social epidemics. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Three Core Competences and Product Architecture Strategy: Case Studies of Indian Markets
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.