By Samuel A. Marandu (MA. Applied Economics- UDSM ,B.A Economics – UoN).
Dar es Salaam,
A cheerful and vivacious upcoming
generation is inspired to form its own business schemes and a
penetrating tunnel is at the limelight in Tanzania.
However, despite a series of resolute,
consistent and persistent efforts that have for the past been
instigated by the government and other youth stakeholders in their quest
for advocating, encouraging and guzzling entrepreneurial culture
amongst youth in the wake of the increasing unemployment levels, things
are slowly beginning to take shape.
What currently remains a lingering
weakness is the capability of the young generation to infuse and
continually survive in the Tanzanian fragmented markets.
In this kind of market, both small,
medium and large enterprises compete in the industry to market their
products or services and boost profit margins. Intense examples of
currently existing fragmented industry markets include the barber Shop
industry, electronics, clothes and apparels and entertainment just to
mention a few. In this form of markets no enterprise or single business
has the capacity to dominate the market.
Whereas the majority of the young
generation face start-up challenges such as inadequate business working
capital, naivety and vulnerability in business and enterprise; this
phenomenon tends to be a competitive, debilitating and expensive venture
to the vigorous generation struggling to build and sustain a name for
themselves and their businesses. Hence they are only left without
ensuring excellent brand reputation so as to effectively compete and
have their good share of profits.
However, despite the challenges that
come with fragmented industries, there is still some sense of hope to
thrive and toil. Young business people may influence on certain
mechanisms in a mid to permeate and perhaps sustain in the market
industry.
First, is the use of vertical
integration to increase customer value,:- business people should ensure
that they have gained control over or ownership of the suppliers,
distributors and retails shops where their products are been sold.
Vertical integration is advantageous in two ways. First, it encourages
information flow whereby information on need, quality or opportunity is
easily and adequately conveyed to a business person through the
suppliers, distributors or retail outlets. Secondly it cuts down on the
costs of production and increases sales and efficiencies.
However, the second one should be on
the product differentiation, – this is where innovation comes to play.
Selling differentiated products or services does not necessarily imply
selling two different commodities. This entails distinctiveness, whereby
Two Similar products have varying features that are recognizable and
would aid in ensuring customers select their products. Use of color and
graphics to enhance this mechanism is sometimes leveraged on.
The third one is to recognize your
geographical area,- business men and women need to ensure that their
ventures are strategically located in terms of geographical location.
The third measure goes in hand with the customer specialization as the
fourth.
And the last aspect is the provision
of value added services to customers,- This is maintaining customer
loyalty through providing complementary services to frequent customers
whilst ensuring that the business owns full responsibility should the
products have any faults.
For further inquiries and comments kindly contact me on;
samuelmarandu@gmail.com
+255713988952
Dar es Salaam.
Tanzania.