Chap 7 Strategy for competing in international markets

This week we continue with chapter 7 which is mention about strategies for competing in international markets. From this chapter what i learn is we can understand the primary reasons companies choose to compete in international markets. Second, learn how and why market conditions across countries influence a company's strategies. Third, learn the five majors strategies options for enter foreign markets and gain familiarity with three main strategies approach for competing. Next, understand how multinational companies are able to use international operations to improve overall competitiveness.

Why some companies decide to enter foreign market???To get a lot of profit??I think this is one of the reasons but actually it have five majors reasons. First, to gain access to new customers, achieve lower costs through economics of scale, experience, and increase purchasing power, further exploit its core competencies. Next to access to the resources and capabilities located in foreign markets.  And last to spread its business risk across a wider market base. And why the company compete across national borders makes strategies making more complex?? This is because different countries have different home country advantage in different industries. Second, there are location based advantage to conducting particular value chain activities in different parts of the world. Third, different government policies, tax rates, inflation rates, and others economics conditions make the general business climate more favorable in some countries than in others. Fourth, companies face risk due to adverse shifts in currency exchange rates when operating in foreign markets. And finally, differences in buyers tastes and preferences present a challengers for companies concerning customizing versus standing their products and services.

When an organization has made a decision to enter an overseas market, there are a variety of options open to it. These options vary with cost, risk and the degree of control which can be exercised over them. The simplest form of entry strategy is exporting using either a direct or indirect method such as an agent, in the case of the former, or counter trade, in the case of the latter. More complex forms include truly global operations which may involve joint ventures, or export processing zones. Having decided on the form of export strategy, decisions have to be made on the specific channels. Many agricultural products of a raw or commodity nature use agents, distributors or involve Government, whereas processed materials, whilst not excluding these, rely more heavily on more sophisticated forms of access. These will be expanded on later.

Having done all the preparatory planning work (no mean task in itself!), the prospective global marketer has then to decide on a market entry strategy and a marketing mix. These are two main ways of foreign market entry-either by entering from a home market base, via direct or indirect exporting, or by foreign based production. Within these two possibilities, marketers can adopt an "aggressive" or "passive" export path.

Entry from the home base (direct) includes the use of agents, distributors, Government and overseas subsidiaries and (indirect) includes the use of trading companies, export management companies, piggybacking or counter trade. Entry from a foreign base includes licensing, joint ventures, contract manufacture, ownership and export processing zones. Each method has its peculiar advantages and disadvantages which the marketer must carefully consider before making a choice.

During our tutorial class also discuss about case study Piping hot dogs-a case of a Malaysian franchise-

First of all we need to know what the strategies that uses in this business. What are the structure, the rivalry, and also need to analysis our competitive pricing strategy. There have three solution which is buyer stage, factor condition and related and supporting industry. Okay first, we have 5 stage level of ages for know the buyers which is :

1. Baby/todlers
2. 12-15 years old
3. 15-23 years old
4. 24-25 years old
5. 45 and above

We need to know how the ages can influences the buying process.

Next, what is factor condition? We need to look at the price and what the ingredient or raw materials that were use in produce the hot dogs whether in  lower or high price. From where they get the chicken and how the chicken deliver to Malaysia.


And finally what the related industry does make the similar business? For example, Ramly nuggets, Ayamas brand and so on also produce the same things. But what is special in this Nineteen O One Sdn Bhd they use Halal ingredients and also get the HALAL certificate from JAKIM. So Muslims people didn't worry to buy because today many cases that involve HARAM ingredients while in making hot dogs. So as a consumer we need to be more careful in buying hot dogs. We also need to look at the opportunity and threat that the company use. The company use their own recipe, re branding and also super brand, and also use different packaging that different from the others. They use red and green plastic packaging to make them is interesting and attract customers. Thats all..:) 

Chapter 6 Strengthening a company's competitive position: strategies moves, timing, & scope of operations.

Erm actually i don't know what to write now..This is because the clock shown 11.37 pm and I felt so sleepy. But before i continue my sleep i want to share something. Okay, this week i will learn about strengthening a company's competitive position: Strategies moves, timing, and scope of operations. First of all we need to know what the objectives in this topics ok :)...

	Learn whether and when to pursue offensive or defensive strategic moves to improve a company's market position.
	Recognize when being a first mover or a fast follower or a late mover is most advantageous.
	Become aware of the strategic benefits and risks of expanding a company's horizontal scope through mergers and acquisitions.
	Learn the advantages and disadvantages of extending the company's scope of operations via vertical integration.
	Become aware of the conditions that favor farming out certain value chain activities to outside parties.
	Understand when and how strategic alliances can substitute for horizontal mergers and acquisitions or vertical integration and how they can facilitate outsourcing.

After we know all of the objectives i want to make conclusion by this topic. This is because this topic is quite long. Companies can make a number of different strategic moves to build competitive advantage. The aim is to create a clear difference that is important to your customers, and is something your competitors cannot match. You can create competitive advantage by developing a strategy of leadership in factors such as cost, quality, innovation and customer experience. Erm from that i think all companies should have their own strength because it is more important to develop success when making something.

Look at this picture..Based on this picture we can know this is important in company have their merger and also acquisition. What is MERGER? As i know merger is a combination of two things, especially companies, into one. So when one team combine together we can get the best result and achieve the success. ACQUISITION??? Its means combination in which firms the acquire purchases and absorbs the operations of another firm, the acquired.

 During my tutorial class, we try to solve the case about the digital age shall I tag along? So what i get from this lesson is all about SWOT analysis.

  
This is what can I share with all of u..Thanks for reading..;) 

Chapter 5 The five generic competitive strategies

1) Air Asia, proton, Malaysia airliners
2) Giant, Tesco, Kamdar, McDonalds, KFC
3)  Bonia, louis vuitton, victoria secrets, honda, old town kopitiam, JW Marriott, Victoria's secret
4)  Porsche

Before continue with summary chapter 5 i will answer few question from my lecturer. I choose on broad differentiation because easy to all of people know what is that means. It means strategy maintains a presence in both segments of the market. Competitive advantage is gained by distinguishing products with an excellent design, high awareness, and easy accessibility. R&D competency is developed that keeps designs fresh and exciting. Products keep pace with the market, offering improved size and performance. Prices are above average. Capacity is expanded as higher demand is generated.

In this week i were continue with the five generic competitive strategies. You know what is that???There are two factor that distinguish one strategies from another. First, market target or narrow and second competitive advantage pursued linked to low costs or product differentiation. 

Okay,,lets we start with strategic. What??Strategic?? First of all what is strategies???? "Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations".

# A low cost strategy: striving to be the overall low-cost provider of a product or service that appeals to a broad range of customers.

# A broad differentiation strategy: seeking to differentiate the company’s product offerings from rivals’ in ways that will appeal to a broad range of buyers LIKE Whole Foods (emphasis on health foods and organic groceries)]. 

# A best-cost provider strategy: giving customers more value for the money by emphasizing both low cost and upscale difference, the goal being to keep costs and prices lower than those of other providers of comparable quality and features (a couple of examples are the Honda and Toyota car companies with customer satisfaction ratings that rival those of much more expensive cars).

# A focused, or market-niche, strategy based on lower cost: concentrating on a narrow buyer segment and out competing rivals on the basis of lower cost (The Gap is a good example).

# A focused, or market-niche, strategy based on differentiation: offering niche members a product or service customized to their tastes and requirements [examples are Rolls-Royce (sells limited number of high-end, custom-built cars) and men's big and tall shops (sell mainstream styles to a limited market with specific requirements)].

Generic Strategies Mini-Lecture

Chapter 4 Evaluating a company's resources, capabilitites and competitiveness

Today i learn about evaluating a company's resources, capabilities, and competitiveness...I think this topics is so interesting because we can know our strength and weaknesses..

 Key points:

#How company's strategy is working 

#Why company's  resources and capabilities

#How to assess the company strength (swot)

#The value chain activities affect

#Comprehensive evaluation of a company competitive situation

And i think all of you want to know about WHAT ARE THE COMPANY'S COMPETITIVELY IMPORTANT RESOURCES AND CAPABILITIES. Right????

Resources and capability analysis provide managers with a powerful tool for sizing up the company's competitive assets and determining whether they can provide the foundation necessary for competitive  success in the marketplace...There are two types of company resources..First tangible resources and second intangible resources..

#Tangible resources -physical, financial, organization resources and technological assets.
#Intangible resources- human assets and intelectual capital, brands, company image and representational assets, relationship and company culture and incentive systems.

Next what is competitive advantages??? An advantage that a firm has over its competitors, allowing it to generate greater sales or margins or retain more customers than its competition. There can be many types of competitive advantages including the firm's cost structure, product offerings, distribution network and customer support.

Tacit knowledge??What is that??This term of words is the first time that i heard..So i found this meaning is unwritten, unspoken, and hidden vast storehouse of knowledge held by practically every normal human being, based on his or her emotions, experiences, insights, intuition, observations and internalized information. Tacit knowledge is integral to the entirety of a person's consciousness, is acquired largely through association with other people, and requires joint or shared activities to be imparted from on to another.