Effect of Danish Boycott Patchy
Published by: Roger Harrison & Maha Akeel, Arab News
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No No No for Danish products! A phrase widely repeated among Muslim buyers replicating the huge dispute between Denmark as a country and Islam as a religion. What Denmark’s government has failed to understand is the tremendous buying power of Muslims towards their products. As government officials refused to apologize and humiliation by other newspapers continued to emerge, switching costs became so low due to the Islamic ideology to their God and Prophet (peace be upon him). Furthermore Denmark supplies more than 30% of its products to the Islamic world so the recent situation of boycotting will severely affect their products, as buying power increases whenever purchases are intended to be in large volumes or consists of a large volume. Moreover as more and more Muslims are looking forward to defend their prophet Danish products became unimportant compared to the quality and services pertained by the manufacturers in Denmark and other countries all over the world. However as competitors like (Anchor, Nido) raised their product’s prices by almost 20% this could increase switching costs between competitors since high quality Danish products are still sold on lower prices. But as I stated earlier Muslim’s ideology towards their religion is not affected by pricing structures, so this aspect could still be debatable.
While relating Hamel’s framework to this article, we find that the Danish manufacturers have failed to meet the requirements of “Customer’s Interface”. As manufacturers fell short by not using their economical pressure on their government to apologize, the “Fulfillment and Support” a component of customer’s interface (which mainly discusses the way a firm reaches and supports its customers) was not met. Besides that, Danish manufacturers have also failed to meet “Relationship Dynamics” (component of customer’s interface) by not interacting with its customers in a proper way.
While relating Hamel’s framework to this article, we find that the Danish manufacturers have failed to meet the requirements of “Customer’s Interface”. As manufacturers fell short by not using their economical pressure on their government to apologize, the “Fulfillment and Support” a component of customer’s interface (which mainly discusses the way a firm reaches and supports its customers) was not met. Besides that, Danish manufacturers have also failed to meet “Relationship Dynamics” (component of customer’s interface) by not interacting with its customers in a proper way.
I believe what could’ve been done by the Danish manufacturers is as follows:
1. Exert economical pressure on their government. As posted by a Danish newspaper earlier this month if this situation continued for one steady year the unemployment rate in Denmark would increase from 15,000 to 50,000.
2. CEOs, Board of Directors, and Market Makers of the Danish manufacturers could use the media as an intermediary to reach their customers in a positive way.
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posted by Managing_the_Nation @ 3:07 AM
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