Ahad, 10 November 2013

chapter 7: strategies for competing in international market

In generally, these topic explained about why companies decide to enter foreign markets:

Firstly, the company want to gain access to new customers.

Secondly, the company want to achieve lowest cost through economies of scale, experience and increased purchasing power.

The company also want to further exploit core competencies and to gain access to resources and capabilities located in foreign markets.

Lastly, to spread business risk across a wider market base.

Sabtu, 9 November 2013

chapter 6 : strengthening a company's competitive position : strategic moves, timing and scope of operations.

Assalamualaikum w.b.t

These chapter roughly explain about how can the company maximizing the power of strategy. They can use one of these alternative which are offensive or defensive competitive ways.

There are the strategic offensive principles:

  • focus competitive advantages to sustain in industries
  • use the sources fully to compete with the rivals
  • use the strategy that the rivals can't expect it
  • use the opportunity to defense the company from threat  

Here, there are the best targets 4 offensive attacks:

  1. markets leaders that are invulnerable competitive positions
  2. runner up firms with weaknesses in areas where the challenger is strong
  3. small local and regional firms with limited capabilities
  4. struggling enterprises on the verge of going under

The new terms that I've learn is a "Blue Ocean Strategy". Actually, blue ocean strategy is offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand.

Horizontal scope is the range of product and service segment that a firm serves within its local market including merger and acquisition

Benefit of increasing horizontal scope are:

  • improving the efficiency of its operations
  • reducing the market rivalry
  • heightening its product differentiation
  • increasing the firm's bargaining power over suppliers and buyers
  • enhancing its flexibility and dynamic capabilities

Outsourcing involves contracting out certain value chain activities to outside vendors.