Saturday, 7 December 2013

LECTURER WEEK 8 (29/10/2013)
Chapter 7: Strategies for Competing In International Markets
In this chapter, i can understanding what the reasons companies choose to enter and compete in foreign markets. The reason is: the companies want to gain access to new customers, wish to achieve lower costs through economies of scale, experience, and increased purchasing power, also want to further exploit core competencies, and beside that, to gain access to resources and capabilities located in foreign markets and spread business risk across a wider market base.
However, to compete the national market is more complex. It is because, the different countries have different home-country advantages in different industries, there are also the location-based advantages to conduct the value chain activities for certain countries and the different in government policies, tax rates, and economic conditions also different in buyer tastes and preferences for products and services. Furthermore, companies can face risk due to adverse shifts in currency exchange rate. 

There are 5 major strategic options for entering foreign markets:


In the process of exploring these options, miss Ummi explained about a strategic to approach a competing internationally such as multidomestic, global and transnational strategies. Miss Ummi also clarify the advantages and disadvantages of that multidomestic, global, and transnational approaches.

In tutorial class, for this chapter, Madam NurulHuda briefly explain one by one how to use Porter’s Diamond of National Advantage for concerned to expand internationally that usually grounded in home country advantages.

Porter’s Diamond of National Advantage



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