Support Strategies
Strategies should be aimed at making the production more available to customers with regard to target audience and ways of delivery and should include analysis of the rivalry in terms of competitive advantage and best practices that can be implemented in their companies.
In other words, support strategies should include the theoretical and practical perspectives on the supply operations.
By facilitating access to foreign technology licenses, it would become easier to open new markets for building and construction materials supply because of the legal perspective of the case. For instance, it is necessary to follow the laws of the countries of customers because the materials should be manufactured with regard to all technical characteristics allowed for a particular country.
Besides, as suggested in the report by representatives of the United Nations Conference on Trade and Development (2010), “high royalty costs associated with foreign technology licenses and fees, for example, are costly and can have negative effects on competitiveness” (p. 150).
Regarding the issue of concern, facilitating access to foreign technology licenses in terms of low-carbon economy investments can be costly though effective making it a competitive advantage compared to companies that would not have free access to licenses thus bearing losses.
Power sector funding of re-tooling costs for production lines and product designs can be improved with the help of a research conducted on the operation of large and small contractors as well as distributors to analyze the channels of supply.
Assessment of distribution channels is the method of active application of effective improvements introduced into the current operation. As suggested in the study by Liu, Meyer, and Hogan (2010), the supply chain should “begin to develop and produce more energy-efficient buildings and to integrate energy efficiency requirements into standard practices” (p. 11).
At the same time, it is necessary to remember about the licenses that can facilitate emergence of innovations in the countries where energy-efficient buildings are very popular whereas the appropriate materials are not available. Market research should include analysis of the markets, rivals, and available technologies with regard to their use.
On the other hand, Cavinato, Flynn, and Kauffman (2006) analyse the cases when manufacturers cooperate actively with their suppliers and “capitalize on technology innovation” with the latter (p. 270).
The process of upgrading capabilities to produce and supply energy conservation materials can be more time- and cost-consuming than facilitating access to foreign licenses and other ways of entering the foreign market with manufacturing and supply of materials for building and construction.
Discussion
For instance, the information by United Nations Publications (2001) supports the idea of active use of the polymer industry focusing on the biotechnology inputs as well as polymer modified cement materials that can be used in future. Delivery of such materials would not be complicated in case customers are interested in the use of such materials.
As claimed by McCabe (2010), “the bargaining power of a supplier is based on their ability to control what they provide” (p. 69). This means that providing materials of high quality makes suppliers more competent in their activity, which also enables them to use this as a competitive advantage and often to use their reputation in order to make deals and carry on negotiations.
The challenges encountered by suppliers can be overcome with the help of a multifaceted approach used in order to investigate and analyse the situation in order to solve all the problems using the drawbacks of the system. In this respect, the foreign market as well as all other markets has its backdoors that can be opened obeying the laws and following the rules of the market.
At the same time, it is possible to capture the market suddenly in case the company possesses the information necessary for that.
For instance, if the market is growing and population and contractors desperately need materials for building and construction, it is possible to cooperate with the largest rivals and enter the market. Furthermore, the cooperation can be stopped as soon as the customers are familiar with the products and quality offered by suppliers.
Conclusion
Support strategies aimed at helping local manufacturers and suppliers enter the foreign markets with their materials for building and construction include a number of practices. It is necessary to conduct a research in order to analyze the foreign market with regard to possible cooperation with currently operation companies that have some position in that market.
In addition, companies can facilitate licensing with regard to evaluation of costs necessary for operation in the new market and potential profit from such a campaign.
Finally, manufacturers and suppliers can improve the technologies in order to meet the increasing needs of the international building and construction area in terms of the green innovations and energy-efficient policies.
To conclude, it is necessary to compare the potential profit with the expected costs on innovations and profits from the entrance to the market and make necessary corrections to the approaches implemented in the pasted to enter the same markets as new technologies require new application.
References
Cavinato, J. L., Flynn, A. E. and Kauffman, R. G., 2006. The supply management handbook. 7th ed. New York, NY: McGraw-Hill Professional.
Liu, F., Meyer, A. S. and Hogan, J., 2010. Mainstreaming building energy efficiency codes in developing countries: global experiences and lessons from early adopters. Washington, D.C.: World Bank Publications.
McCabe, S., 2010. Corporate strategy in construction: understanding today’s theory and practice. Oxford, OX: John Wiley and Sons.
United Nations Conference on Trade and Development, 2010. Investing in a low-carbon economy. London: United Nations Publications.
United Nations Publications, 2001. Review of science and technology in ESCWA member countries, Issue 4. London: United Nations Publications.