INTERNATIONAL BUSINESS 1
Venturing into new markets is one thing most firms fear. Taking abroad step of exploring abroad markets further puts off manyorganizations. Aggressive entrepreneurs set up firms and take theinitiative to invest in new lands. There are many challenges that gohand in hand with setting your foot firm on foreign lands, though.This paper will seek at discussing the strategies to use whenentering a foreign market.
Providing foreign language servicing to abroad may look like a hardthing to do but its workable. All markets need to be analyzed welland then find out your way out on how to stay relevant in theeconomy. A foreign language service company may find it hard todeliver services abroad bearing in mind that the language between thetwo countries will be different. The over whole idea is that somefirms offering foreign language services have ventured abroad andrecorded significant progress. To achieve success in the later, thecompany in question needs to come up with strategies to help itremain relevant in its desired market[ CITATION Vau13 l 1033 ].
Offering foreign language services require the skills ofinterpreting and translating. The key thing to the provision of theseservices is the acquisition of the relevant skills within yourpersonnel. The hiring of personnel who are conversant with thedialect of the language among which the clients are interested withwill make your company compete well compared to the indigenous firms.The management of a firm does not count mush compared to the servicesdelivered by the latter. It is thus evident that the entry of theforeign language service company into any abroad market will count onthe employees executing service delivery[ CITATION And13 l 1033 ].
Analyzing the culture and institution of abroad markets is a boosterto the success of any foreign firm. Different countries havedifferent institutions and cultures, which are predominant with thelocals. Conducting enough market research is, therefore, vital forthe comprehension of the taste and preferences of the immediatecustomers[ CITATION Man131 l 1033 ]. Conducting surveys and visitrival firms to measure on their nature of operation will save a bigway into going wrong.
It would be a noble idea to consider seeking the leadership servicesof a native resident for the foreign language services company.Native residents are bound to have an inherent knowledge of theculture of the business nature around his or her place. Despiteleadership providing to be neutral among the running of many firms, afirm that opts for management that has the basic of the market for along time has the upper hand in the success rate.
Networking is key to any firm all over the world. Indigenous orforeign firms in any economic environment need to network so thatthey can remain relevant and prevent been overshadowed. The foreignlanguage services company needs to network all across the world toopen up with the ever-emerging issues in business.
In conclusion, the foreign language services company needs to keepeverything in place before its entry into the market. Harmonizing ofresources be they human or physical leads to a firm getting acompetitive run over its rivals. A firm offering any service canthrive in any market provided it studies the immediate market andadapts itself to that environment.
Evans, V. (2013). Financial Times Guide To The Gurus : Strategy : The Top 20 Strategic Thinkers And What They Can Do For You. Harlow, Uk : Pearson Education.
Jockenhofer, M. (2013). How To Promote Entrepreneurship Within Established Companies? Human Resource. Anchor Academic Publishin.
Pehrsson, A. (2013). Strategy In Emerging Markets: Telecommunications Establishments In Europe. Routledge.
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INTERNATIONAL BUSINESS 1
Competition drives most of the markets. Tosurvive in a market, a firm has to adopt suitable strategies. A firmwill adopt various strategies depending on the existing marketsituation. Some of these strategies are inclusive of the Defender,Extender, Dodger, and Contender. This paper will discuss the outlinestrategies and even highlight on why an organization might decide tocooperate with competitors.
The defender strategy indicates firm with anarrow but stable market domain. The managers have high expertisesince the organization has a limited operation area[ CITATION Sch14 l 1033 ].Organizations rarely make huge adjustments in the structure oftechnology in use, as their only focusis to improve the efficiency of the current operations. The main aimof the defender is to maintain the same product but increase thesales volume while at the same time reducing the operational costs.This, in turn, will lead to improved profits margin. An organizationseeking to improve its profit margin should adopt this technique.
An organization with the intent of enhancingtheir internal operations and solve administrative issues shouldconsider this strategy as it is highly workable. When Honda venturedinto the car market, rather than fielding competition, Bajaj remainedsince it had a competitive advantage, given that customers preferredlow cost but durable products and could handle the regionaldistributors.
Markers use the extension strategy to deal withmultinational organizations. This strategy entails increasing themarket share for a product or service. This works by ensuring thatthe product remains in the maturity level of the marketing productlifecycle rather than declining the usual way a normal product does[ CITATION Hin14 l 1033 ].Some of the common strategies are inclusive of price discounts,rebranding and coming up with new marketing platforms. Rebrandingentails giving the product or the service a new feel, which mightattract new clients while at the same time, retain the existing ones.
A firm that is seeking to avoid direct confrontation with amultinational organization may benefit a lot from using the specificstrategy. If a firm wants to expand is reach to the similar, butforeign category, it can use practices that have been successful inthe local markets. When McDonald`s entered the food market, ratherthan fielding competition, Jollibbee (Mexican food marker) decided toimprove its effectiveness by providing Mexicans with food across theglobe.
The need for this strategy raises if the homemarket needs to globalize, but a firm`s goods and services are onlycustomized to serve the local market. In such a scenario, the localfirms will feel outmuscled especially considering that theirresources are inadequate and it is impossible to transfer them to thenew markets via expansion.
The situation forces the local firms to changestrategies and find worthwhile collaborators[ CITATION Sch14 l 1033 ].To avoid such a scenario the firms will play dodge by cooperatingwith powerful competitors of the multinational organizations viamergers, alliances or sellouts. Additionally, the firm may exploitthe distinctive home market features to prosper.When viz Kwality, a dominant icecream marketer in India saw Unilever wanted to join the market, theyformed a merger and thus has remained the leading distributor in theregion.
Competition exists in any business environment.However, at times the sort of competition present may becomeunhealthy depending on the conditions. When small-scale firms arecompeting with multinational organizations, they are likely to beedged out thus leading to losses and eventual closure of thebusiness. A local firm should expand its resources and invest inessential expenditures to ensure they attain the same level ofcompetition with that fielded by these global organizations. Thiswill lead to an increase in overall scale production that willcounter the demands in the industry.
Other measures are inclusive of expansion if acompany`s assets, conquering niche-oriented marketing platforms,diversification of industries through consolidating localorganizations and even creation of corporate groups[ CITATION Hin14 l 1033 ].An example is when General Motors wasoutsourcing the manufacture of radiator caps Sundaram Fastenersdecided to contend by buying a General Motors production line,relocated to India and became the individual contractor of the saiditems.
NeedFor Alliance with Competitors
Business is not all about competition, at timessurvival instincts may come into play. At times originations may befaced by situates and decide that rather than competing with othersthey would rather join forces and face the scenario together. As seenin the Dodger scenario, the local market may be advanced or be underpressure to globalize its strategies.
A Dodger situation would force the local firms’off-market since their product and services are not tailored to thenew market requirements. In such a scenario, the local organizationscan form alliances with their competitors to deal with their commonenemy, the multinational organization. Additionally, in the samesituation, the local organization may join forces with the incomingcompetitors in a sellout or merger situations.
Additionally, the competitor might have crucialindustry information regarding the market and success secrets[ CITATION Tuc15 l 1033 ].This means that a given firm does not have access to suchinformation it might be forced topurchase it or find a way of getting it from the competitor. In sucha case, cooperation is the best tool for sharing of such informationmight lead to successful venture between the two organizations.
To sum up, we can see that for a firm tosurvive in any market, it must adopt one or several strategies.Adoption of these strategies will depend on workability andconvenience. The four core strategies defender, contender, extender,and Dodger play a crucial role when dealing with multinationalorganizations. If well adopted by smaller firms, they can survive inthe same market with these global organizations.
Hinkkanen, J. (2014, 10 31). Cooperative strategy in emerging markets-analysis of interfirm r&d cooperation and performance in Russian manufacturing companies. London, Lappeenranta, Finland: Acta Universitatis Lappeenrantaensis.
Schuh, A. (2014). Competitive Strategies of Successful Local Firms in Central and Eastern Europe. ." Geo-Regional Competitiveness in East Central Europe, the Baltics, and Russia. Hershey, IGI Global, 211-238.
Tuchman, R. (2015, April 27). 5 Reasons You Need to Work With Your Competitors. Retrieved April 03, 2017, from Entrepreneur: https://www.entrepreneur.com/article/245375
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