The Future of Polish Small and Medium-Sized Cosmetics Firms
The story of the Polish cosmetics industry is one of triumph and inspiration. Having survived the transition to the market-driven economy, the small and medium-sized cosmetics firms find themselves operating in an environment replete with new challenges. These challenges include the entry of new competitors as well as highly dynamic market trends.
Because the Polish cosmetics industry has become saturated with the entry of more players, the firms in the market need to adjust their business strategies both internally and externally, to survive. Holding on their market segments and share demands, the firms should adopt efficient approaches that can enable them to reach the markets in time (Rudawska, 2013).
Significant investments may be required to acquire online platforms, which would allow the firms to reach new markets as well as acquire the ability to compete with the larger market players successfully. In my view, with the new marketing opportunities availed by social media, coupled with the fact that these firms are indigenous. The future of small and medium-sized firms can be consolidated by the exploitation of the accruing advantage over the competitors.
Also, a well-integrated business process would be critical in shortening the value chain and growing the utility of the products the firms offer. However, I disagree with the manager’s statement that the multinationals buoyed by large capital resource alone will drive the small and medium-sized firms out of the market. About the manager’s statement, it is essential to understand that absolute control of a market requires more than capital (Rudawska, 2013).
The role of the organization to secure a better future
It would be recommended that the organization adopt better strategic approaches to remain a leader in the cosmetics industry. Of critical importance here is staff management and talent management (Rudawska, 2013). In a market with a high level of competition, employee turnover tends to be higher. As such, losing critical employees in the firm to the competitors can have detrimental effects on the firm’s long-term goals.
In this sense, therefore, the laboratories may exploit strategic human resource methods to attract and retain human resource. Also, the approaches would significantly reduce staff mobility to ensure stability in the firm’s pursuit of its corporate objectives.
Also, the laboratories need to invest in research and development projects so that they would produce high-quality products that can effectively compete with those marketed by multinational firms in the market. Research and development would enable the business establishment to come up with innovative products that would help achieve better financial performance outcomes (Proctor, 2013).
Dr. Irena Eris Internationalization
The organization’s entry into the United States was initially driven by the demand occasioned by the Polish population living in the country. Afterward, the firm embarked on an ambitious expansion strategy. The firm moved into franchising business approaches that have ensured that its products are available in over 1,000 specialized salons in the United States of America.
The firm’s entry into the US market can be described as a guerrilla entry strategy because it was so silent and non-confrontational. Proctor (2013) asserts that a guerrilla strategy ensures that a firm that is making entry does not provoke unnecessary negative actions from competitors, who in this case, could be enjoying big market shares.
References
Proctor, T. (2013). Strategic marketing: an introduction. London, United Kingdom: Routledge.
Rudawska, E. (2013). Socially Responsible Marketing in Creating Value for Customers in the Polish Market. International Business and Management, 29(2), 73-94.