- MemberNovember 11, 2021 at 8:42 am
1.Government intervention wholesomely shapes most smes business strategies in my opinion,policy makers through central bank imposes many policies to assist sme whether by requiring banks’ to lower funding rates or by introducing products to cater to sme businesses. One such plan is skim cakna where the government would be playing two roles as the buyer/customer and guarantor, banks are in a way forced to participate in this scheme whereby sme can have up to 90% of funding for certain projects by selling their invoices to the bank without recourse, sme would have enough cash flow upfront to provide the required services. this allows businesses to continue to flourish especially during the pandemic where businesses struggle to stay afloat.
2.Consumer behaviour is the key to devising any market strategy. understanding what attracts consumers allows business to gauge how potential customers will react to new products or service. When businesses understand how a decision is made to buy certain product it allows them to devise strategies to draw consumers to purchase their products and services, one such example would be padini, back in the days padini catered to upper middle class consumers however, due to fierce competition especially ecommerce, they were making a loss until they came up with the strategy to target a wider range of consumers including low income base consumers especially students, young working adults who just joined the workforce with less spending power, fast fashion is not something that the upper class consumers are drawn to, they would rather put in extra bucks and get exclusive items, fast fashion such as hnm , padini are more attractive to consumers who just wants to look good by spending as little as possible, ultimately consumers are emotional beings, business should strategize to offer products and services upon understanding what drives the consumers emotions.