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Pearson

write two replies for two discussions ( a reply for each discussion)

 

1st discussion:

Globalization entails businesses expanding their markets and new consumers and is made possible because of a technological breakthrough in transport and communication, giving more consideration for the business to expand (Twarowska & Kąkol, 2013). The business decision relies on the product mix, implementation of competitive strategies by either modifying to particular market condition or standardizing globally. Also, companies may consider the location of their production base depending on the cost and efficiency of operation or the ability to transfer the resources and capabilities to the foreign market (Arthur, Strickland and Gamble, 2012). Companies may maintain national production base and export the goods to international markets. Sometimes companies can offer licenses to foreign companies capable of using their technology to produce and distribute the products. Franchising is another strategy used when the enterprise may want to reduce the developmental cost and risks in the foreign market at the same time allow simultaneous expansion in different regions of the world. Direct Investment is whereby the company forms a wholly owned subsidiary in a foreign country. The strategy makes it possible for the company to implement strategies and have control over production and distribution of the product mix. There are high cost and risks involved as compared to franchising the business.  Strategic alliances are cooperative agreements with competing firms that have shared research and marketing objectives. Strategic partnerships are created to share technological exchange that some time might be difficult for a single firm to possess, necessary to conduct research and development for new products hence encouraging competition through innovation. For cost reduction, establishing foreign subsidiary will make the business objective. However, in my opinion, there may not be the best strategy to enter a market, all the mentioned can be possible because there are varying market and political condition in different countries in the world.  The company and the product offered to influence the decision to adopt a strategy. Every market has different consumer preference and taste, buying power and culture. The company's growth objectives and organizational culture may influence the implementation of the plan owing to the conflict of interest of the parties. Competition can be improved when the product has added value regarding the culture, cost, and legal requirement in the particular market. Differentiation in the market is also vital as it adds promotional incentives or encourages consumers to purchase an innovative and new product in the market at lower cost (Keegan & Green, 2015).  

 

Arthur A. Thompson, Strickland, A. J., & Gamble, J. (2012). Crafting and Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases. McGraw-Hill/Irwin. 

 

Keegan, W. J., & Green, M. C. (2015). Global marketing. Upper Saddle River, NJ: Pearson. 

 

 

Twarowska, K., & Kąkol, M. (2013). International Business Strategy-reasons and forms of expansion into foreign markets. In Management, knowledge and learning International conference (pp. p1005-1011). 

 

2nd discussion:

There are cases where organizations require establishing their markets in the foreign markets. These situations arise where demand for certain products is higher in certain countries hence will make more profit if the local company targets the international market. Moreover, some conditions may hinder businesses in the local country hence forcing the organization to sell its products in another country. This paper will direct its focus on some of the strategies used when an organization is establishing itself in a different country. Exporting is the act of sending goods and products from one country to another for sales (Piercy, 2014). Exporting is done where there is speculation that there is a higher demand for certain goods in the country the goods are being exported to than where they are being manufactured. 
Licensing is the strategy that involves the transfer of some industrial property rights to another person or organization. The company giving the authority for the sale of their products is called the licensor and the organization gaining the rights is known as the licensee. Franchising involves an agreement between a franchisor and a franchisee whereby, the franchisor gives the franchisee the right to sell its products using its brand name or trademark. In most cases (Cui & Hu, 2014). Franchising is done for products that are highly publicized. In joint ventures, two organizations or parties from different countries form an agreement and decide to manufacture market and sell a certain product or service in such a way that both of them benefit from the venture (West & Ibrahim, 2015). One may provide the necessary information about customer preferences while the other provides the necessary resources for making the product. This is the option that I believe would bring the highest probability for competition in companies.
 
References
Cui, L., Meyer, K. E., & Hu, H. W. (2014). What drives firms’ intent to seek strategic assets by foreign direct investment? A study of emerging economy firms. Journal of World Business, 49(4), 488-501.
 
Piercy, N. (2014). Export Strategy: Markets and Competition (RLE Marketing). Routledge.
West, D. C., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive advantage. Oxford University Press.
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