Reverse Innovation in the Developed Countries, 500 words essay example
Essay Topic: innovation
d. People and power The people and the money need to be moved to the emerging nations where the actual growth of the business lies
e. Preparing the employees the employees of the organization need to be sufficiently sensitized to the reverse innovation motives and be oriented towards the attainment of organization goals
f. Local Growth Teams The marketers then have to station the Local Growth Teams (LGTs) with absolute knowledge of the local business culture and business capabilities
The primary factor boosting the reverse innovation is the gap in the income levels of developing and the developed countries. A product that is customized or mass marketed for the American public cannot be marketed in developing countries like India and Srilanka as the composition of the customers and the purchasing power parity of the two countries vary vastly. In a developing country the customers basically look for a low priced priceperformance curve.
Neglecting the concept of reverse innovation is a missed opportunity and may cost the company dearly. The prerequisite for implementing reverse innovation isnot an understanding of the patterns of the rich countries, but curiosity and shrewdness to have a grip on the consumption patterns of growing economies. The gaps that drive reverse innovation in a developing economy rather than a rich economy are
a. Performance gap The consumers in a developing country will be willing to accept a low performance from a marketer, whereas a rich economy would like to have the best from the marketer. When the MNCs in the rich countries sell their goods to the developing world countries, extra frills are cut and only the essential features are presented as the customers in the developing economy cannot afford high performance expensive products.
b. Infrastructure gap The countries of the developed world enjoy several benefits of high infrastructure like transportation, schools, hospitals and energy mechanisms whereas in developing countries, these are still in the improvising state. The new products should consider the developing countries in mind. For Example, GE manufactured EKG machines for rural India specifically as it was portable and had an extended battery life
c. Sustainability gap In the developing economies, the pressure of sustainability is felt more among the marketers. It is to cope with the environmental factors that the marketers innovate and reengineer. It was because of the rising pollution issue that a few Chinese cities shifted to electric cars.
d. Regulatory gap The regulatory framework of the economies checks whether certain business innovations are aligned with the peoples interest.In the developing countries the regulations are with vested interest and suggest a lot of scope for improvement. This situation becomes a barrier to a real innovation.
e. Preference gap There is a vast disparity in the tastes and preferences of people of developing nations and the developed nations and this makes international marketing efforts possible and profitable.
The internet has facilitated many companies to compete with one another on the eplatform and many join every day to enhance the customer shopping
8. Popular Categories