Always respond to market demands and change with time

A man displays Kodak film catridges. Kodak, which was the fourth most valuable brand in the world about 20 years ago, filed for bankruptcy two years ago. FILE 

By MURORI KIUNGA

One of the driving pillars of Vision 2030 is the development of micro and medium enterprises. The spirit of entrepreneurship is already sweeping across Kenya.

Majority of people are no longer eyeing corporate jobs for security. Young individuals, some fresh from college, are choosing entrepreneurship rather than searching for employment.

This drive is fuelled by many opportunities that have made it easier to start and build a successful business than before. Advanced technology, information flow and disintegration of many trade barriers both regional and global has made it easier to start a business today than in the past.

Challenges and trends like changing lifestyles, climate change, conflicts, diseases, security and technologies are presenting viable business opportunities — ventures thrive on solving needs or enhancing life.

The biggest challenge is to be relevant in the market. It is estimated that as many as 80 per cent of all products and services in use today will be obsolete in five years, at their present form.

Unless their manufacturers change their form to add more value or keep up with times, they will be out of business.

This is bad news to conservative entrepreneurs. But to smart and emerging ones, it provides opportunities to enter the market and create successful businesses.

What this means is that as the population and purchasing power grow, especially in emerging economies like ours, demand for products in the market will increase several times but not in their present form.

People will still watch television but not analogue ones, for instance. These products must be repackaged in a different way to be relevant.

About 30 years ago, a big company located on Nairobi’s Thika Road produced metal boxes and metallic packaging. Those days, most products in shops such as fats, powder milk, drinking chocolate, and drugs were packaged in tins.

Today the company has sunk into oblivion, not because of competitors producing superior or cheaper metallic packages. There is great demand for packing but in a different form — plastic mainly. The firm failed to change and respond to market demands.

Another example is Kodak which filed for bankruptcy two years ago. Less than 20 years ago, Kodak was the fourth most valuable brand in the world after Disney, Coca-Cola and Microsoft.

So what went wrong? The firm missed the digital revolution in photography. Kodak did not fail because its products were no longer needed. They were needed in a different form — digital.

There is a popular misconception that the market place is becoming increasingly competitive, especially for new entrants.

This is far from the truth. What is needed to succeed is creativity and innovation. People are always receptive of new products which meet their needs in better and refreshing ways.