Introduction Mid-Market
What are mid-market innovators and what are the overall strategies and pricing approaches used by these innovators in order to develop their business. Why are mid-market innovators successful? Provide examples where appropriate.
Based on your analysis of mid-market innovators in the first part of the essay question, what challenges are there for incumbent companies?
The mid-market innovators, neither small nor large, it’s the mid-market innovators. So, what exactly are the mid-market innovators? In a clinical sense, mid-market innovators are the flourishing mid-market firms that are truly creative to disrupt the market with their creations. To make it simple, mid-market firms are those which cannot be counted as an SME or the large corporations. Different geographies have different definitions of mid-market firms stated in their laws. In Australia, according to the Australian bureau of statistics, those firms having XXXXXXXXXXemployees are considered mid-market firms (Australian Bureau of Statistics, XXXXXXXXXXWhen these types of firms create something that is unique in the market and creates a niche to be exploited than these are the firms known as mid-market innovators. The products developed by these types of firms does not go unnoticed. These products take the market by storm and creates opportunities for global expansion for the creators of those products. This type of scenario has particularly arisen in China in recent years. Therefore, we look into how the mid-market innovators have made an impact on the Chinese economy and their verge to take on the global economy through their innovative products.
The disruptive innovation of the Chinese “Mid-market industry” is became important business force in this last century.
They have been able to give a new dynamics strategy price and shape prospective for many industries however the multinational companies are still unware about their effective existence. The Chinese manufacture are considered the best players in multiply industries they became rapidly a superpower economy and strong competitors that might jeopardize many businesses. The dramatic situation is impossible to restrain China has unique environmental and entrepreneurial characteristic as a big country size and multiple base consumers.
They are growing constantly the labor is cheap their growth even in infrastructure industry and also in the public services. They operate as national sellers, offering their innovation to industrial customers who are looking for goods services with good level of quality at the best competitive prices. They use attractive selling price, mainly cheaper than the competitions. The construction machinery industry, for example this is another industry where the China market is working and focusing on. The “Chemical Industry” has become a mile-stone for the Asian country they are able today to develop more chemical products, thanks to the research and to their experiences. The importance of the chemical “mid-market” which occu
ed all over the world therefore the incumbency of the efficiency of the Chinese market should encourage the multinational companies to assume different visions about research and innovations. “Research and Development (R&D)” is the real century innovation which is developing forefronts technological products and services which will em
ace the real modern world China companies are investing part of their revenues on the “Artificial Intelligence” they are willing to maintain their power positions on the global Visions economy In The Accountancy industry which is growing the innovation of “artificial Intelligence” that will be a revolution that will replace the A 2013 report , published by The Association of Chartered Certified Accountants and all the data-related and bookkeeping and transaction coding, with an automated software that will allow the accountants to have data stored by the new intelligence technology.
The impact of mid-market innovators has been outstanding in China but how are these mid-market innovators are performing on some other parts of the world? The answer again is outstanding. In Dallas, USA, for example, the pickup app is a mid-market innovator. This app was designed to help individuals for pickup services at their convenience, not by professional pickup drivers but by other individuals who have pickup trucks and are willing to help others. Exactly like Uber, but instead of passengers they ca
y equipment, inventory or anything required by the customer. It was meant for individuals, but the market seemed to be so impressed that big manufacturers like Sonoma, Crate & Ba
els, Williams and Pier One are also using these services to be included in their supply chain (Chief Executive Network, 2016).
Now some interesting questions fill up the mind. How are these mid-market innovators so successful? What are the strategies they use? Can they continue their success? Now the explanatory answers- Mid-market firms do not study rocket science to come up with the
illiant innovations. These firms, usually filled with innovative leaders and employees, study the market carefully and then start with a project to exploit the niches in the market that they found in their study. These niches could be a process innovation, market innovation, service innovation, product or organizational innovation. According to a report by UNSW, in Australia it is mostly product innovation (UNSW Australia, Business School, XXXXXXXXXXIn their project they create cross functionality by
inging in people from all departments to complete the project. This cross functionality generates enough ideas that take form of an innovation which can fill in the niche that they have found from their market study. So, that’s their overall strategy, find the niche and exploit the niche in the market. The firms than start working on those innovations and strengthen their position by devoting most of their resources to continue working on the niche they have found. After the costly R&D, the efforts put on the innovation is finally harvested when the firms gain a cost advantage and put them in a position where they can offer their product or services at lower cost and higher quality than their large competitors. So, they start with a low price, gain the market share and expand their business. By the time the large corporations try to exploit that niche found by mid-market firms, its already too late. This is because the mid-market firms would have already cemented their position in the market in such a way that are always step ahead of their big rival. And so, all that the big corporations would be doing is to follow those steps created by their smaller rivals.
A recent example in context of Australia would be Afterpay. Afterpay is a large corporation now but started as a mid-market firm and is a spot-on mid-market innovator. It found a niche in the credit market of Australia. A firm wouldn’t be counted as a credit firm unless you charge interest to the consumers. While all the big banks and credit firms charged interest to the customers, for the credits they took, and got under the um
ella of respective authorities, Afterpay avoided that. Afterpay gave credit to customers, capped at $2000, and did not charge any interests to the customers. All they did was charge some fees to the merchants for their revenue and the customers would pay their credits in equal fortnightly instalments without interests. This helped Afterpay to gain customers and the merchants were happy to pay some fees to Afterpay as their own revenue rose. Afterpay became the most sought out firm for people who wants to get that expensive i-phone but does not want to
eak their budget or pay any interest. Now many credit firms are following Afterpay’s path, but they can’t catch Afterpay because by now Afterpay is already expanding into the UK and the US market and already has gained remarkable market shares in the US. A classic-modern example of mid-market innovator.
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