By Sawen Sulaiman*
In the modern business environment‚ factors other than economic considerations‚ including political and geographic issues and international conflicts‚ affect business decisions․ Knowledge of geopolitics can be critical to the success of a company’s plans to enter new markets or maintain existing market share․
In the region‚ the Kurdistan Region stands out for its unusual characteristics․ Rather than simply coping with challenges‚ the Kurdistan Region provides subtler lessons about how businesses and markets can take other actions to capitalize on and benefit from difficult conditions․
Kurdistan is not an average country․ It lacks economic stability and other elements of steady economic progress․ Despite these challenges‚ Kurdistan has thriving businesses and other economic enterprises․ Its ongoing operation indicates innovation and other strategic responses․
One lesson from Kurdistan is the importance of position․ Positioning is critical to marketing․ It is a product’s‚ company’s‚ or region’s perceived value․
Kurdistan’s geography provides trade links with nearby and regional countries․ Situated in northern Iraq‚ it serves regional markets․ Regional promotion is an important part of Kurdistan’s identity strategy․
According to reports from groups such as the International Energy Agency‚ northern Iraq is (KURDISTAN) important to regional energy transportation․ This importance makes Kurdistan relevant to other countries‚ even though it is smaller․ The way Kurdistan uses its importance is more important․
Rather than trying to do many things‚ the Kurdistan Regional Government has sought to provide services․ That is a fundamental marketing concept․
Another takeaway is the experience of businesses operating in the area․ Companies with operations in Kurdistan plan for flexibility․ Successful businesses have other arrangements with local businesses and focus on other long term goals․
This matches McKinsey & Company’s global recommendations: In diverse and challenging environments‚ the best approach is to be flexible‚ not directive․
In marketing‚ this is known as knowing your market and your customers well․ Companies will be successful if they familiarize themselves with local culture and practices․
There is a lesson here about trust
In complex situations‚ flexibility is more important than consistency. Business ties‚ including shared knowledge of regional culture and practices‚ may be more important than price and quality in the Kurdistan region․ More generally‚ the World Bank notes that building institutional trust and business confidence takes time and experience․
For marketers and business executives‚ this suggests that brand building strategies in these markets should focus not on brand awareness but on brand credibility․
Kurdistan is an example of ways that constraints may foster innovation․ Political and economic challenges and other risks associated with operating in Kurdistan may be seen as drawbacks‚ but they may also encourage creative approaches to business․
Rather than growing quickly‚ firms sometimes grow wisely․ Rather than reaching broadly‚ firms sometimes develop deep local relationships․ Rather than following the latest fashion‚ firms sometimes develop a reputation for reliability․
These are not coping mechanisms․ These are competitive advantages․
Finally‚ there is a general lesson about storytelling
How a location is perceived is important․ Kurdistan is typically seen as a geopolitical location‚ though companies doing business there may have a different perspective․ Kurdistan can be perceived as a promising and important business location with potential for development‚ among other things‚ depending on one’s perspective․
Good marketing involves telling a good story․ Not a tall tale‚ but a good and truthful story․
Kurdistan is not a model, Kurdistan has promise
For business executives‚ the key lessons are straightforward․ You don’t need a well-established market to succeed․ You need to understand your opportunities and be able to set goals for yourself that are appropriate for your own circumstances․
Kurdistan itself may not be a typical model of success․ However‚ in an increasingly unpredictable global environment‚ it can serve as an important example for others․
It provides examples of operating and expanding in an environment where regulations are always shifting․ And that might be the main takeaway from all this․
*Educator & MSc in B&M