The development and target market selection influential strategies for Iranian SMEs: empirical study

Abstract

Purpose

The financial resources limitation, the difficult conditions for entry into the market and the lack of sufficient funds are the most important problems facing Iranian small and medium enterprises (SMEs). For these reasons, this paper aims to propose an appropriate methodology for formulating the most influential Iranian SMEs development strategies to make it possible to grow and make more income. Then, a framework is developed to precisely determine the target market for Iranian SMEs.

Design/methodology/approach

The paper uses strengths, weaknesses, opportunities and threats (SWOT) analysis; Pareto principle and analysis of the market conditions to propose the development strategies and uses a methodology based on multicriteria decision-making (MCDM) method to determine the target market.

Findings

According to the research results, it is necessary for the Iranian SMEs to follow the brand strengthening, product and market development, enhancing product quality and creating research and development units strategies focusing on the domestic market. The results obtained from the empirical study also indicated that the customer acquisition rate improved from 0.06 to 0.13 per month, and the company's income has a 64% growth in 2016 than the year 2015 through the selection of some public customers as the target market.

Originality/value

Very few studies have been done so far on the formulation methodology of a market entry strategy for SMEs. Studies by researchers imply that no studies have been conducted in Iran in this regard. International studies also mainly focus on the impact of some marketing activities.

Citation

Jafarian-Moghaddam, A.R. (2021), "The development and target market selection influential strategies for Iranian SMEs: empirical study", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 14 No. 3, pp. 579-598. https://doi.org/10.1108/IMEFM-04-2019-0189