What makes KINTEX be a successful exhibition center? - IAEE
What makes KINTEX be a successful exhibition center? - IAEE
What makes KINTEX be a successful exhibition center? - IAEE
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
3. Strategic and Organizational Challenges<br />
<strong>KINTEX</strong> Marketing: From Selling Products to Providing Solutions<br />
As <strong>exhibition</strong> <strong>center</strong>s are rapidly growing in market, competitors struggle to compete in market with low prices and cuttingedge<br />
facilities. However, this tactics are no longer valid for take advantage, <strong>be</strong>cause competitors are very easy to copy<br />
new technologies, low price and also very effectively destroy product differentiation. <strong>KINTEX</strong> was very fortunate to enter<br />
<strong>exhibition</strong> market in Korea and take a leading position only after 3 years of its opening. We analyzed that <strong>KINTEX</strong> can<br />
take advantage of its cutting edge facilities and low pricing policy, and this made the result of leader in Korean <strong>exhibition</strong><br />
market. But <strong>KINTEX</strong>’s marketing strategy is facing a commoditization in terms of product provider. As we know, companies<br />
confronting commoditization have few strategic options. They <strong>be</strong>come a low-cost provider in their industries, but that<br />
requires relentless cost-cutting, trading low margins for higher volume, revealing cost structures to customers. In response<br />
to this pressure, many companies instead aspire to <strong>be</strong>come solution providers, by integrating bundles of their products<br />
with services for the customer. Compared to products, solutions include a large service component and therefore are less<br />
comparable. So <strong>KINTEX</strong> should plan a new marketing strategy which transforms its product seller to solution provider.<br />
Figure III-12 shows how to transform from product seller to solution provider. As we see <strong>be</strong>low, <strong>KINTEX</strong> only sells its<br />
product-venue with low price and other general ways. However, solution provider is <strong>KINTEX</strong>’s To-Be model for taking<br />
competitive advantage in this industry. Solution provider is not a product seller but a service consultant to solve customer’s<br />
issues. So <strong>KINTEX</strong> develop new marketing strategy combining venue and other related <strong>exhibition</strong> services.<br />
Figure III-12. From selling products to providing <strong>exhibition</strong>s<br />
From Market-Driven to Market-Driving; who leads the next generation?<br />
Market-driving firms always find the place where nobody can see opportunities to fill latent, unmet needs or to offer an<br />
unprecedented level of customer value. So <strong>KINTEX</strong> should lead the market by vision rather than by market research.<br />
Exhibition industry is a market place for international buyers and sellers for developing their new business opportunities.<br />
It was, of course, already re-designed by <strong>KINTEX</strong> after it enters this industrial market. At that time, <strong>KINTEX</strong>’s strengths<br />
were more focused on its newly designed <strong>exhibition</strong> facilities and biggest <strong>exhibition</strong> halls in Korea. However, these strengths<br />
are easily copied by other competitors following new technologies and trends. ‘Song-do Conventia’, for example, is a most<br />
recent convention <strong>center</strong> in In-cheon, and it is appealing to its customers by using cutting-edge facilities and low prices as<br />
well. Therefore, the important thing is to make differentiation among competitors for driving the market.<br />
19
Change language