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Report on Business Model of Smart Control System

   

Added on  2020-06-05

6 Pages1573 Words45 Views
Competing in emergingmarket 1

Table of ContentsInstitutional environment analysis...................................................................................................3REFERENCES................................................................................................................................62

Institutional environment analysisAn institutional void is referring to the absence of intermediaries like market researchorganizations and credit card system to effectively connect the buyers and sellers (Menkhoff,2013). Market intermediaries refers to the middlemen on which the company is based on thewholesalers and retailers, agents and brokers, distributors or financial intermediaries typicallyenter into the long-term commitments with the producers and make up what is known as themarketing channel, channel of distribution. The present report is based on Smart controlcompany which operates its business in commercial building automation and sell the variousproducts of new technology. They design the controls into the building and also manufacture andthen sell it nationally and internationally. The present report will provide client companyinformation and about its business model in the US. Along with this, potential institutional voidsthat the client company may encounter if it were to operate in Peru will be analysed. Smart control company is operating its business in the US where they have specialisedmarket intermediaries (Hennart, 2012). As they have strong supply chain and they buy their rawmaterials from electronic components distributors i.e. resistors, capacitors, transistors, integratedcircuits etc. Further, they also go to fabricated part suppliers to get the printed circuits boardsmanufactures and for avoiding distribution they go to the manufacturer directly like sensors andmicrocontroller. Apart from this their sales channel is that they manufacture the products andthen sell it to system integrators to directly to customers who are the owner of the building. Inorder show reputation of company and product, they purchase qualified installer to install theproduct. Marketing channels of Smart control company in the US are a website, word of mouth,trade shows (ahr expo North America) though they are not as strong as previous years. Alongwith this they export their products in different countries such as UK, Australia, Canada etc. At present Smart Control want to expand its business in Peru as there are certaininstitutional voids that the client company can encounter while operating in emerging market.Part of the problem which is believed is that the absence of regulatory system, specialisedintermediaries and contract in emerging market are considered as institutional voids which canhamper the implementation of global strategies of cited company(Cuervo-Cazurra andRamamurti, 2014). Soft infrastructure plays important role in the execution of the businessmodel in home markets. However, in the Peru emerging market there is absence orunderdeveloped infrastructure which is one of the issues that can be faced by Smart control.3

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