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
|
No comments:
Post a Comment