IT'S NOT THE BIG WHO EAT THE LITTLE
BUT THE QUICK WHO DEVOUR THE SLOW |
Awe: Ikea.
Ikea, the important Swedish retail store, is also opening a showroom in Florence at the beginning of 2001and the piece of information itself is enough to trouble the sleep of furniture and furnishing complements distributors and manufacturers. And in fact, the prices offered by this huge Swedish retailer, their products design and the quality of their after-sale services represent a real danger for all the local companies of this field.
This is really a topical issue. How can SMEs compete on the global market? Are they able to hinder the development of great distribution stores or are they able to aim at having their products distributed by them?
As usual, it's obvious that it's impossible to provide one single solution. However, it's possible to sketch some potential scenarios.
First of all, it's necessary for a manufacturer to carve out his own market niche. It seems a simple step to take, but it turns out to be more difficult when we realise that we are talking about living and working in one single enterprise and solving its problems everyday. In fact, most SMEs are unaware of their market position. That's the reason why choosing new and rising trends which are not fulfilled by big enterprises appears to be a conclusive strategy. One example is the attention to ecology and more generally to ethical issues. Nike history case has taught a lot in this field.
Another important strategic action is typological innovation. This is a very difficult path to walk especially if it's true (and it is almost true) that our requirements are almost totally fulfilled. However, it's still possible to introduce some new experiments. One fruitful field, for example, is the one related to mobile phones accessories. And it's always important to remember that, as Michael Porter (1991) writes, "We usually find ourselves working with ideas which are not new but which have not been developed effectively." Innovation and invention cannot be programmed but, at least, manufacturers should try to encourage them. At Philips, for example, the management has been dedicating one day a month for new ideas for customers for a long time.
It's moreover crucial starting experimenting new forms of communication and alternative channels of distribution. It's necessary to take into serious consideration the perspectives offered by multimedia technologies and e-commerce (even if it's important to distinguish between different production fields). One example of these new opportunities is the advantages provided by catalogues on CD-ROMs.
In addition, another key step to take is the creation of new synergetic co-operation forms between companies, led by bodies that should be really able to provide them with actual support. Unfortunately, we are aware that the existing service centres do not always carry out this task. Co-operation between companies could mean joining their efforts to work on innovation and marketing but also to succeed in buying raw materials and components from countries that have a cheaper labour cost.
Least, but not last, the adoption of local trademarks strategies is worth mentioning. Trademarks can be exploited as marketing key factors, as it happens for DOC products which play on collective imaginary feelings. And the great international appreciation shown for Italian art towns and landscape can be considered a significant advantage for our country.
The tasks and strategies listed are all quite difficult to accomplish because they require a multi-level involvement. In fact, it's necessary to connect entrepreneurs, with their difficulties in letting the new generation work in the company and in delegating some of their authority to them, with the political level, which must be urged to offer real services to companies, and the University, which should concentrate on applied research as much as possible.
Moreover, other levels to connect are professional education and training, which should be reorganised in order to overcome the logic of sharing out tasks, the world of company consulting because consultants should think of the enterprise first and afterwards of their own private interests and, finally, the world of design because designers can play an influential innovative role.
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Text by:
Giuseppe Lotti |
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