2024-09-13 03:55:00
Creating new products or services in addition to a company’s main business can provide a significant competitive advantage, but it is also a major challenge for Argentinian SMEs.
According to a report by consulting firm McKinsey, 58% of chief executive officers (CEOs) believe that creating new business is strategic for their companies, while 27% believe it is their top priority. The reason is simple: Last year, 20% of their company’s revenue came from new businesses created in the past five years.
Faced with this trend, what opportunities and challenges do Argentine companies face?
A clear competitive advantage for Argentinian SMEs is flexibility and adaptabilitywhich are inherent characteristics of small companies, but which are enhanced by the adaptive capabilities developed as a result of constant changes in the country.
Scarce internal bureaucracy allows strategies to be implemented quickly without the need for approval from senior executives and directorsas often happens with large companies, strategic plans are designed five years in advance. The latter are, in startup parlance, called “elephant” because, despite their size and solid movement, their structure is very heavy and slow.
on the other hand, Dynamic enterprises and small and medium-sized enterprises with great potential for sustainable development are often called “gazelles or kangaroos”.as their small size makes them more flexible and flexible. However, this agility should not be confused with disorganization or improvisation.
In such a dynamic and challenging environment, creating new business not only contributes to growth but is also a strategy to remain competitive.
One of the weaknesses of SMEs is the lack of structure, which is why many experts do not recommend accelerated growth.Process and quality information for decision-making. Without addressing these issues, it becomes difficult for us as entrepreneurs to make decisions based on consistent and verified information, which reduces our ability to react, manipulate, and anticipate potential risks.
The task of company management is to identify possible risks related to “growth crises” during planning and to design strategies to minimize, reduce or eliminate these risks.
The same should be done by analyzing external factors (possible macroeconomic changes, regulations, exchange rates, etc.). While we cannot control all external factors, we can be better prepared by estimating many possible scenarios And plan what actions to take in each situation.
During the strategic planning phase, trends and forecast information must be analyzed to The design plan considers at least two different scenarios: one optimistic and the other pessimistic. This approach not only enables companies to envision different futures, but also allows them to adapt their strategies more flexibly.
During the strategic planning phase, trends and forecast information must be analyzed to design a plan that considers at least two different scenarios: one optimistic and one pessimistic.
This way, The risk of making hasty decisions under uncertainty is minimized By being prepared to respond appropriately to unforeseen changes, a company’s capital is protected.
When developing new products or services, a strong connection with your customers is crucial. Deep understanding of the market segments in which we operate, maintaining close relationships with our customers and identifying their specific needs enable us to design solutions that not only strengthen our relationships with them, but also increase our company’s revenue.
By aligning with our customers’ expectations and wishes, We can create products that truly add value and make a positive impact Whether it’s your satisfaction or your business’s profitability.
From idea to action
Table of Contents
- 1 From idea to action
- 2 Here are some PAA (People Also Ask) related questions for the title: **The Challenges and Opportunities of Creating New Products or Services in Argentina’s SMEs**:
- 3 – What strategies can Argentinian SMEs implement to capitalize on their flexibility and adaptability to create competitive advantages in the current economic landscape?
Table of Contents
If you’re wondering where to start, I share some tips:
•Look at the different customer segments The people you work with. Not everyone has the same values. Identify them and segment them based on common interests.
•Design MVP (Minimum Viable Product) based on detected interest or need and tested with your closest customers.
•Pay close attention to the entire process Ability to adjust or correct any deviations that occur.
•Ask your customers for feedback Learn more about their experience throughout the process and whether the perceived value met expectations.
•Analyze the financial feasibility of the project Through the analysis of internal rate of return (IRR) and net present value (NPV). Determine the balance point.
•Create differentiated cost centers Allows you to personalize item numbers.
•Prepare monthly profit and loss statement To determine the profitability of new projects.
•flexible enough to adapt to changes. Fall in love with the problem, not the solution.
SMEs that dare to innovate, maintain a disciplined approach to execution, and are willing to learn from their mistakes will be more likely to thrive.
What could go wrong? Of course, nothing guarantees success. but What we should remember is that the world’s most innovative companies “constantly fail”. That is, they test businesses and quickly discard them if they don’t work. Their strategy is to “fail fast and cheap” in order to learn, correct and move on as quickly as possible.
In such a dynamic and challenging business environment, creating new business not only represents an opportunity for growth, but also a strategy to remain competitive. SMEs that dare to innovate, maintain a disciplined approach to execution, and are willing to learn from their mistakes will be more likely to thrive.
The key is balancing long-term vision with agile implementationand never lose sight of the fact that the real value lies in solving customer problems rather than insisting on a single solution.
1726209080
#Creating #business #growth #strategy
The Challenges and Opportunities of Creating New Products or Services in Argentina’s SMEs
Creating new products or services is a crucial strategy for small and medium-sized enterprises (SMEs) in Argentina to remain competitive in today’s dynamic business environment. According to a report by consulting firm McKinsey, 58% of chief executive officers (CEOs) believe that creating new business is strategic for their companies, while 27% believe it is their top priority. The reason is simple: last year, 20% of their company’s revenue came from new businesses created in the past five years.
The Competitive Advantage of Argentinian SMEs
Argentinian SMEs have a clear competitive advantage when it comes to flexibility and adaptability. These inherent characteristics of small companies are enhanced by the adaptive capabilities developed as a result of constant changes in the
– What strategies can Argentinian SMEs implement to capitalize on their flexibility and adaptability to create competitive advantages in the current economic landscape?
Creating Competitive Advantage: Opportunities and Challenges for Argentinian SMEs
In today’s dynamic business landscape, creating new products or services in addition to a company’s main business can provide a significant competitive advantage. However, this comes with its own set of challenges, especially for Argentinian Small and Medium-Sized Enterprises (SMEs). According to a report by consulting firm McKinsey, 58% of chief executive officers (CEOs) believe that creating new business is strategic for their companies, while 27% believe it is their top priority [1]. The reason is simple: last year, 20% of their company’s revenue came from new businesses created in the past five years.
Competitive Advantage through Flexibility and Adaptability
One of the clear competitive advantages for Argentinian SMEs is their flexibility and adaptability. These inherent characteristics of small companies are enhanced by the adaptive capabilities developed as a result of constant changes in the country. Scarcity of internal bureaucracy allows strategies to be implemented quickly without the need for approval from senior executives and directors. This agility enables SMEs to respond rapidly to changing market conditions and customer needs.
Dynamic Enterprises and Sustainable Development
Dynamic enterprises and small and medium-sized enterprises with great potential for sustainable development are often referred to as “gazelles or kangaroos” [2]. Their small size makes them more flexible and agile, allowing them to quickly adapt to changing circumstances. However, this agility should not be confused with disorganization or improvisation.
Challenges Faced by SMEs
One of the weaknesses of SMEs is the lack of structure, which is why many experts do not recommend accelerated growth [3]. Without a solid structure, SMEs may struggle to make informed decisions based on consistent and verified information, reducing their ability to react, manipulate, and anticipate potential risks.
Strategic Planning and Risk Management
The task of company management is to identify possible risks related to “growth crises” during planning and to design strategies to minimize, reduce or eliminate these risks. This involves analyzing external factors, such as macroeconomic changes, regulations, and exchange rates, and estimating possible scenarios to plan accordingly. By being prepared to respond to unforeseen changes, a company’s capital is protected.
Customer Connection and Market Understanding
When developing new products or services, a strong connection with customers is crucial. A deep understanding of the market segments in which SMEs operate, maintaining close relationships with customers, and identifying their specific needs enable SMEs to design solutions that strengthen relationships and increase revenue.
Conclusion
creating new products or services can provide a significant competitive advantage for Argentinian SMEs, but it also comes with challenges. By leveraging their flexibility and adaptability, dynamic enterprises can thrive in today’s dynamic business landscape. However, SMEs must also address their structural weaknesses, develop robust strategic planning, and prioritize risk management to ensure sustainable growth. By doing so, Argentinian SMEs can remain competitive, innovative, and successful in the years to come.
References:
<a href="http://www.globalsmes.org/news/indexv2.php?func=detail&detailid=571&catalog=29&lan=en&searchkeywords/”>[3]
