In the past decade, artisans lacked command over costs that are directly linked with the sale of their items. Consequently, it was difficult for them to expand on both their way of life and salaries as a reward for their works. Therefore, this called for a reform in the chain network of supply and especially to artworks that are made by hand. In response to this reform, Ella Peinovich, one of the Co-founders of Soko Jewelry Fashions, stood to empower women by enabling them to make use of innovation as one of the interventions to interact with global markets that are firm and reasonable (Waldman & Flatter, 2018).
As a result of this, Ella Peinovich fell in a dilemma. She was up to establish whether by generating a discriminatory network of a supply chain in a casual business division which have women ruling the industry of artworks and crafts, would guarantee market worth that is firmly held at the network of supply chain's high point (Waldman & Flatter, 2018). Leaving women to live in poverty despite them being inventive and diligent in work, sets her in a serious of moral questions that she needed to provide a solution, by deciding on the best course of action to choose.
Entrepreneurs such as Mrs. Peinovich and business startups encounter various opportunities and challenges, especially when they are up to scale success at the early stages of emerging markets (Kumbhat, 2018). The most common occasions that the later face include: The crowd-funding opportunity which encompasses startups and entrepreneurs raising money from large people's groups (Zheng, Ahsan & DeNoble, 2019). Startups are also faced with the chance of putting available resources into many businesses with the expectation of diversifying both productiveness and profitability. To give a company an edge, startups and entrepreneurs can produce useful and quality content found in any business place. It becomes easy to connect with consumers or customers while maximizing sales.
Besides the opportunities, startups and entrepreneurs encounter several challenges. Building up of both business vision and idea is the first challenge that business persons look at when beginning businesses in absentia of preparation. Additionally, starting companies require starting capital that needs to be raised. It becomes challenging to persuade specialists of finance over the non-existing business. Business team collection, finding the right location to establish a business, and discovering the best business workers, add to the most faced and felt challenges by business persons.
There exist various costs and benefits of current market saturation compared to expanding to new markets. Market saturation opens an opportunity for clients to recognize business products, and acknowledge their quality and reliability. Customers then begin to acknowledge businesses from the products, and in response, more sales are made; thus, profit increases. Constant profit earned gets invested further in production while firms are kept running smoothly and functioning. Additionally, market saturation sets a good customer base, which encourages more sales.
Creativity, one of the tools to adapt to market saturation, is crucial to success. Customer's attention is attracted, which increases the possibility of buying products. Advertisement increases customers' awareness of goods and services and, at the same time, increases sales. Therefore, market saturation keeps business people always creative while they remain in touch with customers and updated with the best approach to after-sale services. Finally, one can adequately use better his or her distribution channels. Increased demand for products lessens the distribution costs of products.
Businesses are given a chance to develop through sales expansion to clients by the system of diversifying products. Product diversification strategy, when used by firms increases profitability while maximizing sales from new products. The diversification of product lines mitigates businesses' related risks at the event they seem to turn down. Additionally, it permits more product' and services' options and varieties, thus boosting tremendously, profitability, and brand image. Companies find a defense mechanism to shield itself from competitors and to utilize its cash-flow surpluses when it diversify the line.
Product line pushing strategy on contrast is utilized in an attempt to hang out in over-crowded markets. Introduction of products, request, and their consciousness among clients are made. The pulling strategy acknowledges economies of scale while making it possible to predict demand. Diversification and the policy of the pull of product lines, therefore, are strategic and have substantial impacts on business entities. When used, the two strategies provide organizations with opportunities to continuously allocate viable assets while costs related to exchange get lowered (Patrisia & Dastgir 2017).
Leaders have a leadership trait built. In turn, businesses increase their earnings sourced from the benefits of inward advertisement for both capital and assets. Diversification adjusts streams of income pattern and acquires tax cut benefits when joining connected organizations (Castaldi & Giarratana, 2018). Workers are overburdened in their tasks as companies seek to maximize profits through the diversification and pull strategies of product lines. This breaks down executions in firms, causing increased cost of control and coordination of workers. Finally, customers can have their product choice diversified while product prices increase due to advertisement costs and products' innovation.
In conclusion, bringing artisans into businesses as a way of empowering them is essential as people learn to expand their salaries and the means of their lives. They also learn the business opportunities and challenges related to businesses while increasing their thinking ability to establish solutions over them. Companies develop strategies that are incorporated into their goals, making them thrive. The most recommended plans identified include the product line diversification and the pull and push strategies. Business success, therefore, results when all are employed by business persons in their firms.
Castaldi, C., & Giarratana, M. S. (2018). Diversification, branding, and performance of professional service firms. Journal of Service Research, 21(3), 353-364.
Kumbhat, A. (2018). Development Stages and Scaling Issues of Startups. In Flexible Strategies in VUCA Markets (pp. 3-15). Springer, Singapore.
Patrisia, D., & Dastgir, S. (2017). Diversification and corporate social performance in manufacturing companies. Eurasian Business Review, 7(1), 121-139.
Waldman-Brown, A., & Flatter, G. C. (2018). Soko Jewelry, Fast Fashion, and Building a Virtual Factory.
Zheng, C., Ahsan, M., & DeNoble, A. F. (2019). Entrepreneurial Networking During Early Stages of Opportunity Exploitation: Agency of Novice and Experienced New Venture Leaders. Entrepreneurship Theory and Practice, 1042258719844715.
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