In global market today, it can be supposed that there are two typical kinds of oceans: read oceans and blue oceans. Of two sorts of market, red oceans are defined as a known space for all existent industries nowadays. On the contrary, blue oceans are regarded as an unknown area for industries which do not exist. As a result, red oceans present all existing rules related to business competition and industrial regulations. This market defines and determines the boundaries for all games and rules. In this market, companies strive to compete with their competitors and rivals in order to gain better benefit and dominate more market share of current demand. Therefore, red oceans provide for space for enterprises to focus on their competition for decades. However, the space is limited while competitive battles are becoming increasingly fierce. There are more and more participants wanting to invest in the same products. Continue reading
International Business Strategies
International Competitive Strategies
Firms which succeed in implementing competitive strategy can gain competitive advantage: this latter improves the firm’s competitive position, creates a barrier to entry, and enables a firm to change its competitive stance in response to market changes. Two constructs appear significant at this strategic level. First, distinctive competence; this refers to activities which a firm does better than its competitors, but which require superior skills and resources. The latter are basically tangible assets such as the technology, the distribution network or superior resources; access to supply can also enhance the position. Distinctive competence can create barriers to imitation and help sustain competitive advantage; and superior skills and resources improve the firm’s position when they can lower costs (through scale economies, the learning curve or capacity utilization) or create value to customers. Organization is another element of distinctive competence: a better organizational design and appropriate structure enables a firm to adapt Continue reading
Three Approaches for Promoting Diversity in the Workplace
Though, diversity can have a wide range of meanings, some companies use the traditional Equal Employment Opportunity Commission (EEOC) definition of diversity, which deals with differences in gender, racioethnicity, and age. Other companies tend to favor the broadest definitions of diversity, ones that encompass differences in gender, racioethnicity, age, physical abilities, qualities, and sexual orientation, as well as differences in attitudes, perspectives and background. Many individuals rely on a more detailed definition of diversity considering diverse people as being in the non-dominant social system who have been traditionally under research and under served. While there is no correct definition of diversity, the three diversity initiatives discussed in this article seem to target a definition that encompasses creating a diverse work environment that is inclusive to everyone, specifically focusing on the inclusion of minorities and non minorities. Three Main Approaches to Workplace Diversity 1. Colorblind Approach The colorblind approach is similar Continue reading
Internationalization Strategy Selection
Choice of the strategy does not consist merely of a collection of isolated decisions on products, markets, channels, partners and operation modes. These decisions are also core issues of a competitive strategy. Therefore, the choice of a strategy is all about choosing an appropriate framework for the growth and internationalization strategy for the company‘s competitive success. That is, the choice of strategy must be understood within the context of strategic planning. The strategy of the firm is concerned with matching a firm‘s resources and capabilities to the opportunities and challenges arising from the external environment. This could just as easily be restated as, €•The choice of the growth and internationalization strategy is concerned with matching a firm‘s resources and capabilities to the opportunities and challenges arising from the external environment. According to the view adopted here: “The central task of strategic planning is defining, building, utilizing, maintaining, and developing a Continue reading
Understanding the Importance of International Business Strategy
The survival and progression of businesses in the 21st century is highly dependent on the ability of firms to expand beyond their national borders, taking into account the cost effectiveness of expansion and the complexity and risks associated with the company’s chosen international business strategy. The resources and objectives of a firm, as well as the demand for their product outside their national borders are important in taking the decision to globalize a company’s products and/or services. Although three strategies are more common, namely multi domestic, global and transnational approaches, the fourth strategy available to firms is the international approach to global expansion. This article will analyze the two approaches that differ in local responsiveness and cost pressure for the business, with the international approach as the least responsive and expensive for the company and the transnational approach as the most costly and locally focused from the four options available Continue reading
Case Study of Toyota: International Entry Strategies
Toyota is being known world-wide and being accepted as the world most popular car manufacturer. Wherever we go, not even a single soul did not know what a Toyota is. This is what we called as Toyotaism. But, to accomplish this was not that easy compared to how it sounds. Toyota had to face several issues and problems also had taken multiple actions to solve them. Hiroshi Okuda had identified 3 issues relating to the management of Toyota. Those management issues are; (1) Lag in product Planning, (2) Declining market share in Japan, and (3) was behind in overseas expansion. Due to these main issues, Toyota had taken several steps for the manufacturer to survive in its own name in own country and also to the world outside. For Toyota to make known of its brand name, a number of development strategies had been taken by Toyota. The first stage Continue reading