How SMEs can navigate the changing market dynamics

David Muwanga

In Uganda today, one can find a product with more contents being sold at a cheaper price while the one with less contents.

But have you ever wondered why the one selling a product of less contents at a higher price sells more than the one selling at a lower price?

The answer to this question is one of the ways on how the small and medium scale enterprises can remain competitive in the changing market dynamics and global economy.

Small and medium scale enterprises need to set up a price that gives a customer value for that money spent on that product or service.

“You should not change price because your competitor has also changed the price, the price you set up should be standard and must have a competitive advantage,” said Philip Oucor, the Head-Sales, Capability and Distribution at Crown Beverages Limited.

Oucor made the remarks at the Uganda Top 100 mid-sized companies breakfast forum held at Sheraton hotel on Wednesday.

The annual forum is sponsored by the Uganda Investment Authority (UIA), DFCU, The Daily Monitor, KPMG and ICEA.

“A great price strategy does not always mean lowering the prices of existing products or services in order to win more customers but must provide value for money to the client,” he advised.

He said that the investors need to identify the pain points for both the customers and competitors.

“You should ask open-ended questions to find exactly what your customers want while using your products and services and if you want to build your niche and to have more room for your business, its essential to offer something unique in order to minimise competition," he said.

He said giants like Nokia and Black Berry were wiped out of the smart phone market because of lack of innovation.

He advised that small and medium firms also need to improve customer care because people love businesses that provide exceptional customer service.

The UIA Director for small and medium enterprises Eria Kaweireko advised SMEs to take advantage of the regional markets including the East African Community and the Common Market for Eastern and Southern Africa.

"SME’s should take advantage of the many regional agreements that have been signed between member states by producing high quality products for both local and regional markets,” he said.

He said the authority continues to engage with stakeholders to improve the investment climate for MSMES.

"This is done through research and active participation in forums like this one that are geared towards improving the business climate, that is the authority is a co-sponsor of such like this one where we have learnt how to remain competitive in a global economy."