Over the past 10 years there has been a tremendous increase of amount of information available to everyone thanks to new technologies.
This has clearly increased level of transparency basically reducing price disparity across different markets (I think especially on durable consumer products). This a process still ongoing however we all are better informed and more critics about paying a certain price for goods and services we purchase.
This means that in principle gross margin level overall is getting more aligned in most of the markets.
On the other side what is still different is the cost of operations which has substantially increased in many countries and today it is a higher barrier to establish a presence in certain markets.
The pressure on gross margin is making this scenario even more complicated.
In this situation the right question to any organisation is not IF to have a local presence in the market but HOW to effectively and efficently operate locally.
Well, keep doing in the same way as always done for the past years definitely is not the right answer!
The good thing about tough situation like today in many markets is that often there is no choice either you “make it or break it”.
And “to make it”…. organizations have to find innovative approach like for example alternative solutions to acquire the needed senior managerial experience and expertise paying the right cost.
How much seniority does require your local operations? Do you need a full time senior country manager? Or is it more suitable a trustworthy external director to advise on strategy and guide your team so you can invest more in strong sales and operations resources?
Before there was not much option so if you needed an experienced country manager you had to pay the full price for it.
Today you can have access to alternatives to secure trustable business management seniority with cost effective approach so you can optimise your investment focusing resources on what really matters for your local organization such as business development, account management, merchandising, market know how, customer service.
Evolving markets and shared economy are driving innovation in today’s country management, make sure to leverage that for the future of your business!
Proriented Managing Partner and Founder
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