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The South West of England DMO Consultant - Report Example

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This report "The South West of England DMO Consultant" focuses on South West of England (SWE), a destination management organization (DMO) that delivers tourism-related services ranging from transportation to helping people in overcoming language barriers…
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Executive summary South West of England (SWE) as a destination management organisation (DMO) delivers tourism related services ranging from transportation to helping people in overcoming language barriers. This DMO is comprised of 9 Destination Management Organisations that are responsible for marketing South West of England’s all important destinations. South West of England is a hot spot in the global tourism map. A number of factors such as ineffective co-ordination of local government activities, unscientific treatment of environment and its resources, and rapid growth of major destinations in Asian countries (mainly India and China) raise many potential threats to the DMO’s future operations in the region. The organisation can address all such issues to a great extent if it pays specific attention to its branding and positioning activities. However, the organisation must be up-to-date with the recent trends in technology while dealing with digital and direct marketing. Furthermore, the DMO must prioritise environmental sustainability and social welfare activities while promoting its operations in the South West of England. Table of Contents Executive summary 1 Introduction 3 Recommendations 5 2.1 Branding and digital marketing 5 2.2 Segmentation, Targeting and Positioning (STP) 7 2.3 Suggestions for medium and long term strategies 12 2.4 Implications of the solutions 13 Conclusion 15 References 16 1. Introduction In order to clearly understand the consultancy role to a Destination Management Organisation (DMO), it is important to know the concept of DMO and its operations. A DMO can be simply referred to a professional services organisation with comprehensive local knowledge, resources and great expertise, and that focuses specifically on the development and execution of events, tours, transportation, and other related activities. The major services delivered by a DMO may include “transportation, hotel accommodation, restaurants, activities, excursions, conference venues, themed events, gala dinners and logistics, meetings, incentive schemes as well as helping with overcoming language barriers” (Davidson, 2012). The DMO chosen for this report is the South West of England. The South West of England is the largest official region of England by area, covering 9,200 square miles and the home to five million people (Church Planting Initiative, n.d.). The South West of England is comprised of 9 Destination Management Organisations (DMOs) that are responsible for marketing the region’s destinations including Bath, Bournemouth & Poole, Cotswolds and the Forest of Dean, Bristol, Dorset, Somerset, Cornwall (includes Isles of Scilly), Devon, and Wiltshire (visitsouthwest.co.uk,2014). According to Buhalis (2000), the destination should contain 6 perspectives which is called 6A’s framework. Value of tourism & other key statistics: South West 2008 This section discusses the value of tourism in the South West region of UK. The value of tourism relies heavily on the demand side factors since the tourism industry in itself operates on such factors. These include number of visitors to the southwest region, their duration of stay, as well as the key reasons for their choice of destination (Office for National Statistics, 2011). Figure 1: Visitors to the South West – Key Statistics Source: The South West Tourism Alliance (2008) Figure 2: All staying visitors: UK & Overseas data Source: The South West Tourism Alliance (2008) Figure 3: Breakdown of visitor expenditure: Source: The South West Tourism Alliance (2008) According to the statistics made available by UKTS1 (UK Tourism Survey) Visitor Information South West: Figure 4: Total trips by residents in the UK in the year 2009: Source: South West Tourism: UKTS Survey (2009) The survey also suggested that most of the visitors were found to be between the age group of 35 - 44 years and no significant difference between the genders were observed. Figure 5: Visitor information based on age and gender ­­Source: South West Tourism: UKTS Survey (2009) Figure 6: Socio-economic status of the visitors: Source: South West Tourism: UKTS Survey (2009) Figure 7: Employment Status of the visitors: Figure 8: Staying visitor origin: ­Source: South West Tourism: UKTS Survey (2009) Figure 9: Duration of trips: Figure 10: Type of destination: Figure 11: Accommodation used: Figure 12: Key months of visit: Seasonality It was observed from the available statistics, that the months of April to June registered higher number of trips, which increased significantly during July and reached its peak during August. January and February registered lowest number of trips followed by March, November and December (South West Tourism, 2009). Most of these trips to the South West comprised of those coming for holidays followed by VFR and Business trips visitors. Figure 11: Purpose and share of visitors based on type of visit Source: South West Tourism Statistics: Visit England (2009) The statistics further indicated that a significant majority of international tourists came from France. Figure 12: Top 10 international visitors: Source: South West Tourism: Visit England (2009) Figure 13: The top 10 tourist destinations in the South West: Source: South West Tourism: Visit England (2009) Figure 14: Framework of the South West of England (Adapted from Buhalis and Fletcher, 1995) Figure 15: South West Physical Features Source: Office for National Statistics (2014) p. 42 Figure 16: The Key Stakeholders and Their Roles of the South West of England The major roles stakeholders of the DMO include local residents, tourists, partnerships such as National Trust and Cotswold District Council, region’s councils, attractions and heritage sites, local tourism businesses, Visit England, and Visit Britain. Evidently tourists (both domestic and foreign) constitute the major stakeholder group because they significantly contribute to the economic growth of the region. Heritage sites and other attractions greatly assist the region to attract more number of tourists. The region’s Councils and other organizations like Visit England are responsible for co-originating tourism related activities in the area. Finally, local tourism businesses help the region to improve its tourist services while local residents assist the region to fill many tourism related job vacancies (swtourismalliance.org.uk, 2011). 2. Recommendations 2.1 Branding and digital marketing Branding and digital marketing have a crucial role to play in the modern business environment, as these factors are unavoidable to enhance the operational efficiency and competitiveness of a modern business organisation. Branding can be simply referred to the process of creating a unique image of the product/service in the minds of consumers and thereby making the particular product/service well recognizable in the market (Sharma & Singh, 2006). Tourism destination branding: Tourism destination brands refer to "the identities created through symbols and nomenclature businesses to identify themselves and their travel products" (Keller & Bieger, 2006: p. 81). With regard to tourism destinations the concept of branding entails capturing and promoting a key market position in a manner that appeals to the visitors and at the same time retains the local cultural values of the community. Thus the term tourism-branding destination can be summarised as follows: - Capturing the key factors that are perceived by the tourists and communicating the same to them by offering them a general idea of "what can be experienced" during their visits - Communicating the core branding strategy i.e., the manner in which the community or the destination would like to market itself to the world. For instance, induced, organic, authentic, etc., (McCool & Moisey, 2008: p. 132) - Creating a strong image of the destination that differentiates itself from the clutter and attracts tourists based on market segmentation strategies Branding strategies of the South West: It is apparent from the statistics discussed in the previous sections, that the South West is a premium tourist destination in the UK. The region attracts both local as well as international tourists all year round, from diverse socio-economic backgrounds. This data can be exploited to create brand clusters and the choice of destination can be promoted and marketed to the visitors based on their demographic profile through market segmentation strategies. For instance, the key clusters which can be used to promote South West tourism include the “sheer indulgence cluster”; the “environmental cluster”; the “nature lovers cluster”; among others. The sheer indulgence cluster can be used to target visitors, who appreciate and yearn for fine dining experience and have an affinity for pampering such as spa, massages etc., sheer luxury and celebration. The statistics made available by UKTS indicate that a significant majority of the visitors prefer to visit seaside destinations and live in hotels. This data can be used to create specific brand clusters and target customers based on market segmentation. The local organisations such as hotels, restaurants, health spas, recreation centres and other relevant businesses across the South West region can be brought together to shape the brand clusters and create a specific cluster strategies. This in turn can be achieved through shared market intelligence and collaboration initiatives with relevant organisations aimed at developing and promoting a given brand cluster. The development of such brand clusters will help in bringing together various mainstream tourism businesses as well as other local activity sectors. While analysing the current branding strategies of the SWE, it seems that this DMO would not be able to vie with its competitors successfully because its branding approach is not clear enough. Hence, the DMO has to develop new branding approaches to create a clear image for consumers. Undoubtedly, innovative and effective branding strategies may assist the DMO to deliver the marketing message clearly, to enhance credibility, to influence the buyer behaviour, and to promote customer loyalty. While examining the official website of the SWE, it is identified that this website is not sufficient to meet user needs because it is only a simple webpage than a website. The website does not provide any specific information about the DMO or the products and services it delivers. In this internet era, it is essential for the DMO to maintain a well designed and comprehensive website to provide a great shopping experience to visitors. Similarly, the DMO does not have a clear logo, which is essential for every firm to create identity in the market place. Figure 17: The South West of England Website (visitsouthwest.co.uk, 2014) Therefore, it is advisable for the South West of England’s DMO to design a clear logo and website that can communicate the organisation’s marketing message effectively. The image given below (Figure 17) is the screenshot of the corporate website of Hospitality Line, a major DMO in the United Kingdom. This DMO has clear logo and website, and it provides many useful links to visitors. The website of South West Tourism caters to the brand clusters and the needs of the visitors effectively. For instance, the Visit Devon section of the website offers a comprehensive package for visitors across diverse market segments such as the young travellers, those with families and households with young children. The Attractions section targets families travelling with young children and offers a comprehensive guide for prospective travellers about things to do targeted at young children. Source: http://www.visitdevon.co.uk/things-to-do/attractions/ This includes detailed and dedicated sections providing information about theme parks, wildlife attractions, farm attractions, children activities such as boat, train or tram rides, as well as the specific seasons /months during which such activities and festivals are held. Source: http://www.englishriviera.co.uk/whats-on/childrens-week-2014-p1239013 The website is designed in a way to offer maximum ease to the visitors in exploring the areas of their interest and providing them detailed information about the places to visit and major tourist attractions. Considering the rise in reliance of people in general, on technologically aided tools, specially designed apps for iPhone and Android users is advertised on the website to make it easier for them to surf the websites and access information about their potential travel destination on the go, anytime at their convenience. Such easy accessibility and availability of detailed information targeted as specific market segments make it easier for the visitors to make an informed decision about their travel destination. The website is designed to effectively communicate maximum information through visual imagery and attract the general web surfer as well. The key tourist destinations are marketed through images categorised under the “Gallery” section on the home page of each region, thus making it easier to access and process the needed information without having to read pages full of information. The visual depiction of key tourist destinations in the specific region makes it easier for the online visitor to explore and understand the type of tourist attractions the region has to offer and helps them to make an informed choice about their trip. Similarly the Visit Wiltshire section of the website offers detailed information about the choice of destination based on the type of activities preferred by the visitors, thus specifically catering to all the market segments and customer clusters at once. The website allows the prospective visitors to choose from a comprehensive list of alternatives of events, thus targeting the specific brand cluster and offering them the opportunity to choose and plan their own trips from the comforts of their homes. The information offered can be used to target, for instance, the “sheer indulgence cluster” and offer them choices such as arts and crafts, food and drink, shopping, festivals, cultures, and music. Similarly the young travellers such as students or backpackers can avail information easily related to their choice of travel destination based on the events available in the region such as sporting, murder mystery, music, theatres and concert performances and the likes. The older travellers can also avail information about events preferred by them such as guided tours and walks, and nature among others. The website also offers detailed information on food and dining that can prove to be extremely useful for all categories and customer segments including vegans, local and international travellers. For instance, Chinese travellers have been identified as being among the top 10 visitors in the South West. The detailed and specific information related to food and dining, provided by the Visit Wiltshire website can prove to be extremely helpful for the Asian travellers. Source: http://www.visitwiltshire.co.uk/whats-on/bank-holiday-ideas Figure 18: Hospitality Line Website (hospitalityline.co.uk, 2014) 2.2 Segmentation, Targeting and Positioning (STP) Segmentation, Targeting and Positioning (STP) is widely applied strategic approach in modern marketing, and hence it is very familiar to modern business world. This marketing approach is particularly relevant to the current market context where marketing approaches are based on customers rather than products. According to Hanlon (Dec 17, 2013), “the STP model is useful when creating marketing communication plans since it helps marketers to prioritise propositions and then develop and deliver personalised and relevant messages to engage with different audiences”. The author adds that it is an audience focused approach to communication that passes relevant messages to commercially appealing audiences. The following diagram is a simple illustration of the STP model. The diagram makes it clear that the STP model starts with identifying bases for segmentation and ends with developing a proper marketing mix for each segment selected. (Source: Hanlon, 2013). There are several approaches to segmentation, targeting, and positioning. The DMO must be really selective while developing approaches to STP so as to improve the profile of the SWE and to improve its competitive advantages. Primarily, the DMO must segment its audience in the region and determine the important characteristics of each market segment. Referring to Peter and Oslan (2007), it is possible for the DMO to segment the destination in the SWE on the basis of age, gender, income, education, marital status, professional occupation or ethnicity. While considering the type of services delivered by the DMO, it is recommendable to segment the destination based on income or professional occupation of people. Psychographical segmentation is also a great approach to segment the destination: and this segmentation strategy gives specific focus to individuals’ personality and emotions that affect their purchased choices (Gitman & McDaniel, 2008). The DMO should also take into account lifestyle, belief and values of people while segmenting the South West of England market (Michman et al, 2003). It is obvious that factors linked to an individual’s lifestyle such as hobbies, other non-work time pursuits, vacations, entertainment, and recreational pursuits can greatly affect the competitive capabilities of a DMO. Similarly, a person’s religious, political, nationalistic and cultural beliefs and values can notably influence the way of his/her living, and hence those elements are extremely relevant to the market operations of a destination management firm. To illustrate, Islamic community strictly limits women’s interactions with the mainstream society, and hence Muslim women are less likely to accept most of the common services offered by the DMO. Hence, the organisation must pay particular attention to those communities’ beliefs and values and restructure its services to make them appealing to all segments. It is essential to consider the life stages of people while segmenting the destination because tastes and interests of people may vary depending on their life stages (Panda, 2007). Geography is also a major factor when it comes to segmenting a huge market like the South West of England as the purchasing behaviour and lifestyle of people living in urban and rural areas would not be the same (Weinstein, 2013). Finally, people’s behavioural traits linked to marketing such as nature and frequency of purchase, brand loyalty, utilisation of distribution channels, and usage level should be an important point of concern while planning segmentation. Brand position of the DMO is a major factor influencing its market share. It is identified that South East of England and other DMOs can raise serious competition threats to SWE (swtourismalliance.org.uk, 2011). In order to address this challenge, the SWE must offer improved products and services to tourists. In the South West of England, there are number of cultural tourist attraction such as Stonehenge, The Eden project, Roman Baths, Bristol Zoo Gardens, and etc. (Visit England, 2010) but, one major point of concern is that, among all these travel spots on the South West England, no spot is free of cost for the visitors. Figure 19: Visits to Visitor Attractions Survey 10 - Top Attractions - South West (Paid) (visitengland.org, 2010) Therefore, all these areas are popular among cultural tourist only. So, to make this spot popular among the non-cultural tourist also authority can make this free for them or can reduce the entry free, and at the same time can offer discount for groups. These strategies can encourage more tourists to visit these areas, so the earning from other activities like accommodation, refreshment and child enjoyment, restaurant, transport can be raised. The main objective is not to make these places interesting for only one segment of tourist but promoting every city, every place such a way that every segment of people looks to visit all areas across the entire of the South West of England. Similarly, the DMO must adopt modern approaches to targeting in order to gain competitive advantages over the SWE market. Effective targeting strategies would assist the organization to improve the commercial attractiveness of each segment. Since there are measurable differences between market segments, the targeting strategies must be potential enough to meet the interests of particular segments. The DMO must ensure that anticipated profits from a market segment exceed the cost of additional marketing programmes or other unforeseen changes. Undifferentiated marketing, differentiated marketing, and concentrated marketing are the three common approaches used for market targeting (Kumar, et al. 2010-11). Undifferentiated marketing, sometimes referred to as mass marketing, is the practice of adopting a single marketing strategy for all segments instead of targeting a particular segment of the market. According to another view, if the DMO needs to target several segments of the market, it should consider a differentiated marketing strategy where products and services with distinct marketing mix policies are developed for each of the segments chosen by the organisation (Havaldar, 2010). Finally, the DMO may adopt the concentrated marketing strategy if the firm wants to concentrate its marketing efforts on a particular segment of the market. It would be beneficial for the DMO to focus more on Asians, especially China. As you can see in Figure 20, it shows the increasing of Asian tourists who came to United Kingdom. Figure 20: Growing and Declining Markets of the UK Tourism Industry Figure 20: Inbound tourism (tourismalliance.com, 2013) Positioning, the final stage of the STP model, is really crucial to ensure that the firm’s products and services are well recognisable in the market. As the first step, the DMO must develop an appropriate positioning strategy that can operate in line with the characteristics of the different market segments. The marketing mix elements such as product, price, place, and promotion can have a great influence on the positioning strategy of the organisation (Kazmi & Batra, 2009). It is particularly recommendable for the organisation to give great focus to pricing approaches because modern customers are increasingly price sensitive. In addition, the DMO should make better use of advanced technologies to promote its destination because conventional promotional techniques are expensive and ineffective as compared to modern marketing tools. 2.3 Suggestions for medium and long term strategies All the strategies recommended above cannot be used in the long term because some of them are based on the contemporary marketing practices, and hence those strategies should be used in the medium term and amended thereafter. The proposed segmentation and targeting strategies are recommendable for the DMO in the long term because the fundamental structure of the market is not likely to change over a few years. To illustrate, if the DMO segments the South West of England market on the basis of income or professional occupation, this segmentation strategy can serve the organisation in the long term because there would not be a fast growth in the average income of a large region. In addition, the region’s professional occupation structure would remain almost same for a long period of time. Similarly ethnic or demographic distribution in a large destination like SWE would not show a significant change in short time. At the same time, the positioning, branding, and digital and marketing strategies are recommendable for the DMO in the medium term because they are greatly dependent on the current structure of the market environment. As discussed already, the positioning strategy gives particular focus to marketing mix elements such as product, price, place and promotion, and the treatment of these elements are greatly linked to recent developments in the business/market environment. In addition, the DMO cannot use its branding strategies in the long term because branding would not be effective unless innovative branding techniques are introduced from time to time. It is clear that information technology is on its growth, and modern organisations are eager to adapt to newer advancements in the field of IT. Since digital marketing is greatly linked to IT sector, the DMO should make timely changes to its digital marketing policy so as to take advantages of the recent advancements in the IT sector. Therefore, it is advisable for the organization to use digital and direct marketing strategies in the medium term. 2.4 Implications of the solutions The operational, strategic management, and marketing solutions based on environmental safety and social welfare can greatly benefit the DMO to gain competitive advantages over its rivals like South East of England because the modern customers give increased emphasis to corporate social responsibility (CSR). The DMO’s operational plans to initiate environmental campaigns and reduce greenhouse gas emissions would greatly support the efforts taken by the government and environmentalists in preserving the nature and its invaluable resources. Likewise, operational strategies based on social programmes like blood and eye donation can contribute notably to the corporate stature and public acceptance of the DMO. Such programmes can also assist the company to keep customers loyal to its brand. However, the application of the STP model in this scenario may lead to some negative implications. To make it clear, segmentation and targeting activities based on any of the combination of age, gender, income, education, marital status, professional occupation or ethnicity may not be effective in case of a destination management organisation because a DMO offers a wide variety of services to clients. Therefore, the DMO must conduct a comprehensive study of the South West of England market before making a final decision regarding segmentation and targeting. Finally, increased reliance on information technology and other internet-based technology to deal with promotion and branding can offer the DMO some competitive capabilities. Today, a notable percent of people across the globe uses social networking sites like Twitter and Facebook to connect with their friends and relatives, and to share their thoughts and opinions. For example, Spain made a new strategy to encourage visitors to visit Spain again by using Facebook fanpage. As in the past, the country itself was a big destination and it was uncontrolled, so they came up with this social media strategy as you can see in Figure 21. Figure 21: See Spain and Spain in the UK Facebook Fanpages (facebook.com/SeeSpain&facebook.com/SpainInUk, 2014) In this context, branding and promotion through social media can benefit the South West of England’s DMO to cover a wide market effectively at cheap costs. Since social media are interactive platforms in digital marketing, the DMO can collect customer feedbacks and opinions timely, and make necessary changes to its operational style if necessary. 3. Conclusion This report was trying to develop a new approach to Segmentation, Targeting and Positioning (STP), branding, and digital and direct marketing to improve the operations of a destination management organisation in the South West of England. Also, this report intended to evaluate the position of the South West of England and to suggest effective operational, strategic management, and marketing solutions for the DMO to gain a superior position in the destination. It was identified that segmentation based on individual income and professional occupation is a good strategy for DMO to achieve operational success in its destination. A differentiated marketing strategy is advisable for the DMO with regard to targeting. When it comes to positioning, the DMO must greatly emphasise the treatment of marketing mix elements, particularly price and promotion. In terms of branding and digital and marketing, the organisation must focus specifically on modern internet marketing techniques like marketing funnel and CTAs. Moreover, the DMO of South West of England must develop a professional website with a clear logo so as to meet customer needs in a more convenient way. The segmentation and targeting strategies may be used in the long term whereas branding and digital marketing strategies are recommended for the medium term. The operational strategies based on CSR may benefit the DMO in the long run whereas proposed segmentation policies may not deliver the intended outcomes because of the specific nature of the organisation. References Bryan, R. 21 April 2014. “5 Simple Digital Marketing Strategies That Can Help Your Business Grow”. Huffington Post. [online] available at: http://www.huffingtonpost.com/roger-bryan/5-simple-digital-marketin_b_4816425.html [accessed 9 July 2014]. ‘Church Planting Initiative’. South West. [online] available at:http://www.cpi-britain.org/cpi/index.php/wherewework/south-west [accessed 9 July 2014]. Davidson, R 2012. e-Study Guide for: Marketing Destinations And Venues for Conferences, Conventions And Business Events. US: Cram101 Textbook Reviews. Gitman, L & McDaniel, C. 2008. The Future of Business: The Essentials. US: Cengage Learning Hanlon, A. Dec 17, 2013. “The Segmentation, Targeting and Positioning model”. Smart Insights. 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Tourism, recreation, and sustainability: Linking culture and the environment. Oxfordshire, UK: CABI Publishing Office for National Statistics (2011). The Regional Value of Tourism 2011 [Online] Available at: http://www.ons.gov.uk/ons/dcp171776_353069.pdf [Accessed: 15 August 2014] Office for National Statistics (2014). Portrait of the South West [online] Available at: www.ons.gov.uk/ons/rel/regional.../no.../portrait-of-the-south-west.pdf [Accessed: 16 August 2014] Peter, J. P & Olson, J. C. 2007. Consumer behaviour and marketing strategy. New Delhi: Tata McGraw-Hill Education. Panda, T. K. 2007. Marketing Management. Excel Books India. Sharma, S & Singh, P. 2006. Advertising: Planning and implementation. India: PHI Learning Pvt. Ltd. Shay, S. 2008. Entertainment Marketing & Communication. Pearson Education India. Swtourismalliance.org.uk. 2010. UKTS 2009 South West Tourism Results. [online] Available at: http://www.swtourismalliance.org.uk/files/download.php?m=documents&f=100428140006-UKTSSW2009.pdf. [Accessed: 19 Jul 2014]. Swtourismalliance.org.uk. 2011. Principles for Success – The South West Tourism Alliance. [online] Available at: http://www.swtourismalliance.org.uk/documents/q/category/strategic-work-documents/principles-for-success/634/ [Accessed: 19 Jul 2014]. Tourism Alliance. 2013. UK Tourism Statistics 2013. [online] Available at: http://www.tourismalliance.com/downloads/TA_348_373.pdf [Accessed: 19 Jul 2014]. The South West Tourism Alliance (2008). Facts & Figures: Value of tourism archive [Online] Available at: http://www.swtourismalliance.org.uk/documents/q/category/finance-facts-figures-documents/value-of-tourism-archive/value-of-tourism-2008/ [Accessed: 16 August 2014] The South West Tourism Alliance (2009). Facts & Figures: South West Visitor Survey [Online] Available at: http://www.swtourismalliance.org.uk/documents/q/category/finance-facts-figures-documents/south-west-visitor-survey-archive/south-west-visitor-survey-2009/ [Accessed: 17 August 2014] Visitengland.org, (2010). 2010 Summary tables of top attractions by region. [online] Available at: http://www.visitengland.org/insight-statistics/major-tourism-surveys/attractions/Annual_Survey/2010_Top_Attractions_by_Region.aspx [Accessed 19 Jul. 2014]. Visit England (2009). South West Tourism Statistics [Online] Available at: http://www.visitengland.org/Images/South%20West%20Tourism%20FactsheetLisaedits2_tcm30-18396.pdf [Accessed: 17 August 2014] Weinstein, A. 2013. Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms. US: Routledge. Read More
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