Competencies required for an emerging market SME to compete in the developed market for design, development and manufacturing projects

Abstract

This paper explored the requirements and subsequent competencies needed for an emerging market SME to operate in the developed markets on design, development and manufacturing projects. This was analysed by first exploring the differences in the requirements of the two markets and then determining what competencies a typical SA company would have to acquire to be competitive in the DM. The case was explored through a study of an SA SME operating in the design and development market, who was in the process of internationalising into the US and European markets. Data was gathered through a desk analysis of specifications from each market as well as in-depth interviews with the firm’s key decision makers and customers from each market. The first outcome was that there was a difference in the requirements of the two markets, namely the level of detail and sophistication of the DM specifications, the greater need for a competitive product in the DMs, both in pricing and functionality, the requirement for socially ethical practices and that EMF products need to overcome the negative COO effects. The final outcome was that EM SME’s needed to improve on their current competency set, namely an adaptation of the development process, sourcing practices and improvement in technical competencies. The firm also developed a method of introducing their product to the DM, such that the COO effect was reduced. This was done through the use of SA OEM’s and DM MNE’s supplying SA. Copyright