Global Policy and Strategy Assignment (GC0418)
Table of Contents
1.0 Introduction.
2.0 Drivers of global growth.
2.1 Competitive edge.
2.2 Diversification.
2.3 PESTLE Factors.
2.0 Market entry strategy.
3.1 Processes/Approaches to international market entry.
3.1 Criteria for country selection.
3.2 Market potential assessment factors.
3.4 Timing of Entry.
3.5 Advantage to entry.
3.6 Barrier to entry.
4.0 Scale of entry.
4.1Porter’s Five Forces model
4.2 Entry modes.
6.0 Conclusion.
References.
1.0 Introduction
In the age of globalization and digitalization, many businesses intend to maximize their operations in the global market. However, gaining success in the global market is very challenging (Johnson et al., 2015). That is why taking effective strategic initiatives is essential to gain sustainable competitive advantages (Stonehouse, 2016). This paper, first, identifies and analyzes drives business growth in the international market. Then, this paper defines and analyzes market entry strategies. Finally, this paper identifies and analyzes the entry modes for a business in the global market.
2.0 Drivers of global growth
2.1 Competitive edge
The term “competitive edge” is defined by Keegan (2014) as a skill, piece of information, a resource, or a product of a business that usually competitors do not have, and that gives the business advantage in a competitive market. According to Carson (2016), a competitive edge is the higher level of performance of a business than its competitors in the market. Hill (2014) said a business must have a competitive edge to expand its operation in the global market. Keegan (2014) classified a competitive edge as cost advantage and differentiation advantage.
For example, Tesco gains cost advantage by offering similar products at lower prices in the global markets including EU, China, and India (Tesco, 2018) and targets to gain operating profit between 3.5% to 4% by 2019/2020 (Lewis, 2016). On the other hand, Wal-Mart gains a differentiation advantage through price premiums from unique products (Soni, 2015). Johnson et al. (2015) said if a business fails to fit its strategic orientation with the market condition, it fails to gain competitive advantages in the global market. For instance, Tesco failed in the US market because it had failed to merge its strategic orientation with the market condition (Heffernan, 2013). Keegan (2014) said it can be done in two different ways: a) by changing external sources; and b) by changing internal sources.
Our Recommended Resources:
2.2 Diversification
According to Ansoff (1957) growth-matrix cited in Johnson et al. (2015), four basic growth alternatives open to a business in the global market. These are product development, market development, market penetration, and diversification. Stonehouse (2016) stated that the term “diversification” is related to changes in the characteristics of products and/or markets in comparison to product development, market development, and market penetration, which ultimately bring other changes in the product-market structure As Johnson et al. (2015) discussion, a business that wants to apply diversification strategy needs to continually weigh and compare of these four alternatives and combine each other based on business circumstance and long-term growth plan.
Kotler et al. (2014) said diversification strategy helps a business in exploring new markets, building new products, and taking new risks in the global market. For example, many multination firms including Tesco and Wal-Mart diversify their products and markets to maximize value and increase profit growth rate (Morschett, 2016). Amazon, eBay, and Alibaba, as another example, are diversifying their products by breaking the distance and reducing transaction costs, and use internment and eCommerce sites to market their products (Thain and Bradley, 2015)………………
For Full Documents Click Download Button
You may also like
Global Business Management _Free Assignment (GC01717)
Theoretical Perspectives on Management Sample Assignment (GC01714)
