Competitive horizon

Citation

(2006), "Competitive horizon", Strategic Direction, Vol. 22 No. 7. https://doi.org/10.1108/sd.2006.05622gab.001

Competitive horizon

According to a report published by the Tehran Times (www.tehrantimes.com), investment in the Suape polyester project will enable Brazil to enhance its synthetic fiber textile and clothing industries. The investment will enable Brazil’s polyester fibers and yarns to compete on price with Asian competitors. The move will eventually help create around 1 million new jobs across the country’s textile chain, as Brazil’s man made articles start to compete more effectively on the world stage. The report points out that Brazil’s textile and clothing industry has so far not realized its potential on the international markets, despite being an established producer of cotton products. In 2005, for example, only $2.2 billion was exported out of the $26 billion produced in the sector.

Which online ad works best?

A study carried out by Eyetrack III has suggested the days of the much-maligned pop-up ad may be numbered. The organization monitored the performance of different online ad formats and found that many viewers closed the pop-up within three seconds, before the ad had even loaded fully. Another common response was to ignore the interruption by minimizing the pop-up as soon as it appeared. The report, as published by AME Info (www.ameinfo.com), suggested that the most effective ads were those able to disguise themselves and blend in with the main content of the website. That such ads generated the highest levels of viewing indicates that design strategies should focus on integration rather than extravagance. This will help combat the growing problem of users deliberately avoiding online advertisements. The study also revealed that ad positioning can make all the difference. Advertisements placed on the left hand side performed better than those on the right, whereas higher up the screen was likewise more preferable than lower down. The suggestion is that effective placement enables ads to be observed more quickly and for longer. A simply designed ad was found to attract greater attention but this attention was much shorter than for ads deemed more complex and visually attractive. Comparisons between animated and static forms were inconclusive with each outperforming the other at different times. Because user attention is short-lived, the study points out that marketers have to act quickly to get their core message across. An effective strategy for achieving this objective is to use message hooks near to the start of the ad. When properly executed, the users gaze will be held until the main message is delivered.

Asian countries dominate confidence poll

ACNielsen’s latest consumer confidence study has indicated that optimism for improved economic performance over the coming year is highest in the Asia-Pacific region. In China, 78 percent of consumers surveyed expect further economic progress, with similar figures recorded in India and Indonesia. Asia-Pacific countries accounted for the first eight positions in the top ten most optimistic, with the US and Norway completing the list. In the latter two countries, confidence levels were recorded at 43 and 42 percent respectively. Confidence across the whole Asia-Pacific region was on the increase, as 53 percent of consumers felt that their country’s economy would improve in the year ahead. According to the report published by the Asia Times Online (www.atimes.com), optimism levels were much lower in Europe. Opinion was almost divided equally among those who expected improvement and others who felt their country’s economy would either remain the same or deteriorate. The findings of the study substantiated beliefs that economies in China and India will be the main drivers of growth in the world economy.

UK firms suffer from lack of customer skills

A report published by Clearlybusiness (www.clearlybusiness.com) cites financial services, garages, telecommunications and electrical retailers as being among the companies in the UK providing the worst service to their clients. The National Consumer Council (NCC) claims that many organizations are indifferent towards customer needs and give the impression they are only after a quick sale. Companies also stand accused of failing to deliver on their promises, while some cannot even do the basics properly. According to the NCC, firms must learn to put themselves in the client’s shoes if they are to avoid losing custom and damaging profit levels. The report implies that the most successful UK companies are those who cement long-term relationships with their clients.