It is quite difficult to establish a new business nowadays. The Porter’s Five Forces suggests that for the new businesses,we need to overcome the barriers to entry. This refers to the threat of new entrants. From the article “Young Woman Breaks through in Sri Lankan Business World”, it demonstrates the young woman named Nimall Gunawardana has successfully established her business through overcoming the barriers. At first, she failed to run a company as she realized that she could not afford the great number of loans and as a result, no bank would lend to her. This illustrates the absolute cost advantages and the bank policy have prevented her from establishing the new business. Also, as for the rural parts of Sri Lanka, it has the discrimination that woman cannot have their own business and Ms. Gunawardana did not get the support at all. However, she did not give up and ask the business support organization for help. Luckily, after training and borrow enough money from the organization, she had her company, “Nimali Chips and Fibre Mill”, which “turns discarded coconut hasks into three useful materials-coir, coir pith and husk chips.” Sri Lankan riches in coconut and Ms. Gunawardana uses discarded coconut as the main resources of her products which greatly decreases the cost. Without doubt, there are competitions that she has to deal with. Gunawardana “currently sells her products to other companies who then export them and she wants to start doing the exporting itself”. She began to improve her product differentiation as she starts to turn its coir into rope, which is also a point of difference. As we can see, innovation is vital in the business nowadays even in the rural parts.

PS: From this article, we cannot only to learn some business knowledge but also, ambitions and confidence is also crucial to our success. Woman also can be outstanding and we should not give up so easily when we are achieving our dreams.

http://www.bbc.co.uk/news/business-24206038