Understanding Mid-Market Innovators: Strategies for Growth and Expansion

Running head: MANAGEMENT ACCOUNTING
Management Accounting
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1MANAGEMENT ACCOUNTING
Executive Summary
The current essay is based on understanding the mid-market innovators and their overall
strategies undertaken for the growth and expansion. The essay studies the pricing approaches
undertaken in the intense age of competitive environment. The essay also emphasises on the
factors that have contributed to the success of the mid-market innovators by analysing the
detailed literature and extensive research framework. Apart from the success and growth of
mid-market innovators the study would also place emphasis on the challenges for the
incumbent companies as well. In the closing stage the summary of the findings would
highlight the key understanding gained from the mid-market innovators and further
recommendations based on the findings with greater emphasis on the growth and expansion
strategies for the mid-market innovators.

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Introduction:
Over the years the landscape of retail sector has changed and has witnessed greater
upsets than any other sectors in the modern world of marketing. During the year there are
large number of world’s fast moving consumer goods firms has witnessed a slowdown their
revenue. In spite of the slowing environment, the small and middle-market brands were able
to attain success (Silva, Styles and Lages 2017). The question arises is what drives the
success of the mid-market innovators. Primarily the launch of new product has not witnessed
a sustained growth. Nearly around $19 billon of annual sales is boosted by the new products
which were worn down by the sales of the products that has replaced on the shelf.
For several large scale companies, innovations are largely driven by greater amount of
risks management than the group of development. As a consequence of this, there are large
number of manufacturers that have been less fruitful in driving the innovation. During the
year 2015, the top 25 largest foods and beverage companies have produced only 3% of
overall growth, in spite of accounting around 45% of the category sales. Retailers are better
placed in selling more number of goods on the promotion and those efforts is becoming less
efficient (Hashmi and Biesebroeck, 2016). Over the last four years, the retailers have
increased their sales based on the promotion, however those promotional activities have been
less effective. These seismic shifts in the retail landscape have laid the foundation for the
overall disruptions and upsets that business has witnessed over the years.
Literature review:
The rise of the mid-market innovators is viewed as the game-changing innovative
approach. The mid-market innovators are quickly redesigning the dynamics of several
industries that includes the agriculture construction, healthcare and transportation however
there are several competitors that are largely unaware of its existence (Lewin, Kenney and

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Murmann 2016). In a collective manner the mid-market innovators represents the subsequent
stage of China’s evolution in becoming the worldwide economic global force and also acts as
the major threat to the well-established international manufacturers, one which may risk the
jeopardise their presence. This might appear exaggerated however the probability is actual.
Incumbents in the capital and scale intensive business to business industries where customer
classification was not important but was particularly vulnerable.
Companies that are identical could possibly arise in the other markets namely India,
Brazil or Indonesia but they have failed to do so. So far only china has maintained to emerge
in the market (Dubois et al., 2015). This is due to the fact that the exceptional features of the
Chinese commercial surroundings currently have the huge size and difficulty in customer
base with rapid fire innovative culture to access the low cost labour. All these factors in a
collective manner provide mid-market innovators with the enormous stage for progression
and endangered from the external competitors that does not have much access to the business
environment of China.
There are large number of mid-market consumers that emerge each year in the newly
developed cities namely those that are in the Chinese inland or those that are molded on the
edge of the current urban regions (Nishitani and Itoh, 2016). The mid-market innovators
similar to several other businesses compete on the price skilfully and persistently. However,
they also contest competition on the innovations by constantly refining their product,
procedure and business models and narrowing the gap in terms of reliability and performance
amid themselves and their established international competitors with extraordinary speed. In
the meantime, the products continue to remain lower in terms of costs and more decisively
they are accustomed to the requirements of Chinese (Nenonen and Storbacka, 2018). For
example, the businesses do not target all the portions of the state on one occasion rather they