Value chain and the company's entry into new markets
Posted: Sun Dec 22, 2024 6:20 am
The most predictable option for conquering new markets involves moving along the CSC into dependent segments.
In practice, the CSC has a significant impact on this process. If we consider the goals of conquering new markets from the position of the enterprise's place in the value chain, then an opportunity arises for an effective solution to a number of problems. As an example, let us consider the options for a company to enter related dependent market segments.
The development of a company and usa phone list its product in the direction of neighboring dependent segments of the CSC is the most predictable option for business expansion, a method of entering new markets. It is important to choose the right direction of movement here. In practice, enterprise managers often instinctively determine the vector of development and gradually move towards the creation of a controlled vertically integrated model.
The company's entry into new markets
Source: shutterstock.com
A good example here is Amazon. The company is aggressively moving into adjacent dependent segments of the CSC.
Over a long period of time, Amazon has been building its own full-fledged technology for solving logistics issues. Currently, the company manages about 20 thousand trucks and 60 cargo aircraft. In 2019, Amazon's logistics system took first place in the list of the company's product delivery channels, providing about half of all deliveries.
Solving mainly its own problems, Amazon already serves 18% of the total volume of deliveries from online stores on the US market. It is quite natural that the next stage of the company's development will be related to the provision of logistics services to other enterprises.
At the same time, it is quite possible that the cost of delivery will be the most affordable on the market, since Amazon does not have the task of obtaining maximum profit from the new direction in the near future. In the current situation, it will be more profitable for the company to occupy the adjacent dependent segment of the CSC, and only then increase the profitability of the business. Such tactics pose a threat to Fedex and UPS.
FedEx delivery service
Source: unsplash.com
These companies have been growing for a long time and are making profits, which are mostly related to Amazon's activities. Since 2000, Fedex and UPS have almost tripled their turnover and are profitable.
Another example of Amazon's strategy to enter adjacent dependent segments is related to the launch of sales under its own brands in several niches where other operators previously dominated. Amazon pays attention to attractive business sectors that the company can easily occupy, given the available resources and advantages that allow it to maintain a leading position in the market.
In practice, the CSC has a significant impact on this process. If we consider the goals of conquering new markets from the position of the enterprise's place in the value chain, then an opportunity arises for an effective solution to a number of problems. As an example, let us consider the options for a company to enter related dependent market segments.
The development of a company and usa phone list its product in the direction of neighboring dependent segments of the CSC is the most predictable option for business expansion, a method of entering new markets. It is important to choose the right direction of movement here. In practice, enterprise managers often instinctively determine the vector of development and gradually move towards the creation of a controlled vertically integrated model.
The company's entry into new markets
Source: shutterstock.com
A good example here is Amazon. The company is aggressively moving into adjacent dependent segments of the CSC.
Over a long period of time, Amazon has been building its own full-fledged technology for solving logistics issues. Currently, the company manages about 20 thousand trucks and 60 cargo aircraft. In 2019, Amazon's logistics system took first place in the list of the company's product delivery channels, providing about half of all deliveries.
Solving mainly its own problems, Amazon already serves 18% of the total volume of deliveries from online stores on the US market. It is quite natural that the next stage of the company's development will be related to the provision of logistics services to other enterprises.
At the same time, it is quite possible that the cost of delivery will be the most affordable on the market, since Amazon does not have the task of obtaining maximum profit from the new direction in the near future. In the current situation, it will be more profitable for the company to occupy the adjacent dependent segment of the CSC, and only then increase the profitability of the business. Such tactics pose a threat to Fedex and UPS.
FedEx delivery service
Source: unsplash.com
These companies have been growing for a long time and are making profits, which are mostly related to Amazon's activities. Since 2000, Fedex and UPS have almost tripled their turnover and are profitable.
Another example of Amazon's strategy to enter adjacent dependent segments is related to the launch of sales under its own brands in several niches where other operators previously dominated. Amazon pays attention to attractive business sectors that the company can easily occupy, given the available resources and advantages that allow it to maintain a leading position in the market.