chapter 7 : STRATEGIES FOR COMPETING IN INTERNATIONAL MARKETS

ASSALAMUALAIKUM W.B.T
Today, we continue for the next topic with are discuss about the STRATEGIES FOR COMPETING IN INTERNATIONAL MARKETS.

IN THIS TOPIC LEARNING OUTCAMES:

1. Develop an understanding of the primary reasons companies choose to compete in international markets.
2. Learn how and why differing market conditions across countries influence a company’s strategy choices in international markets.
3. Learn about the five major strategic options for entering foreign markets.
4. Gain familiarity with the three main strategic approaches for competing internationally.
5. Understand how multinational companies are able to use international operations to improve overall competitiveness.
6. Gain an understanding of the unique characteristics
   of competing in developing-country markets.

 WHY COMPANIES DECIDE TO ENTER FOREIGN MARKET

1.To gain access to new customers

2.To achieve lower costs through economies of scale, experience, and increased purchasing power

3. To further exploit core competencies

4. To spread business risk across a wider market base

5.To gain access to resources and capabilities located in foreign markets

From this lecture, miss ummi share a lot of video, and one of the video describe about

MC DONALD

POLITICAL RISKS

What is political risks?

Political stem from instability or weaknesses in national governments and hostility to foreign business.

ECONOMIC RISKS

What is economic risks?

Economic risks stem from the stability of a country's monetary system, economic and regulatory policies, the lack of property rights protections.

chapter six :STRENGTHENING A COMPANY'S COMPETITIVE POSITION : STRATEGIC MOVES, TIMING, AND SCOPE OF OPERATIONS

ASSALAMUALAIKUM..

For the new chapter i want to share with you about the very interested
 topic ... it is about the thinking outside the box. before that, we must know the objectives this topic

•Learn whether and when to pursue offensive or defensive strategic moves to improve a firm’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 firm’s horizontal scope through mergers and acquisitions.

•Learn the advantages and disadvantages of extending the firm’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 aciqusitions or vertical integration 

and how they can facilitate outsourcing.

BLUE-OCEAN SATEGYTR is a offers growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand.

Ebay.com is the one example company use the blue ocean strategy.. Ebay.com has the own identity that everyone in the world can use this website to sell or buy anything they want....

HORIZONTAL SCOPE  is the range of product and service segments that a firm serves within its focal market.

VERTICAL SCOPE is the extent to which a firm’s internal activities encompass one, some, many, or all of the activities that make up an industry’s entire value chain system, ranging from raw-material production to final sales and service activities.

STRATEGIC ALLIANCE is a formal agreement between two or more separate companies in which they agree to work cooperatively toward some common objective.

JOINT VENTURE is a partnership involving the establishment of an independent corporate entity that the partners own and control jointly, sharing in its revenues and expenses.

chapter five : THE FIVE GENERIC COMPETITIVE STRATEGIES

 

ASSALAMUALAIKUM...

   From the topic the five generic competitive strategies i can understand what distinguishes each of the five generic strategies and why some of these strategies work better in certain kinds of industry and competitive condition than in others.

THE FIVE GENERIC COMPETITIVE STRATEGIES

     Low Cost Prodvier

Striving to achieve lower overall costs than rivals on products that attract a broad spectrum of buyers

  Broad Differentiation

 Differentiating the firm’s product offering from rivals’ with attributes that  appeal to a broad spectrum of buyers.

  Focused  Low-Cost

  Concentrating on a narrow price-sensitive buyer segment and on costs to offer a lower-priced product

    Focused Differentiation

  Concentrating on a narrow buyer segment by meeting specific tastes and requirements of niche members

  Best-Cost Provider

  Giving customers more value for the money by offering upscale product attributes at a lower cost than rivals

HOW DOES AIR ASIA COULD MANAGE THE OFFER PRICE

    In my class, for the last lecture 8 october 2013, we have to discuss about how does Air Asia could manage to offer cheaper airfaces. In my opinion, firstly Air Asia offers the online ticket for customers to easy check the price, date, or destination.By using the online ticket, they dont need to come out print the cost paper to be ticket and reduce the counter ticket. Secondly, Air Asia management cut so many operational cost. Futhermore, Air Asia not have many workers. U can see, an employee in Air Asia will do a lot of work. For example, all the stewardess is multipassing, with check the ticket at gate,sell for in flight, serve customer, and stucking luggage.Besides that, Air Asia didt give the opportunity for the customers to choose seat and its small space with many people. As fr instead people dont care it because the price Air Asia offer.

  Air Asia also prefer to choose the cheaper airport for landing and fly.For example, in malaysia, Air Asia prefer to choose LCCT airport than KLIA. The best strategic management that Air Asia have in ansuming reducing the cost was, they buy the fuel when the price of the fuel was decrease and the prefer to buy the fuel in bought or wholesale. Lastly, Air Asia have the a low-cost providers core concept basis for competitive advantage is lower overall cost than competitors. Successsfull low cost leaders, who have the lowest industry cost, are exceptional good at finding ways to drive cost out of their business and still provide a services that customers find acceptable.

now everyone can fly

chapter four : EVALUATING A COMPANY’S RESOURCES, CAPABILITIES, AND COMPETITIVENESS

Assalamualaikum..

Im very interested about this topic because in this topic i learn how to learn how well

a company strategy is working and understand why a company resources and 
capabilities are central to its strategic approach. Besides that, im also know that how to evaluate their 
potential for giving the company a competitive edge over rivals.

Before that we must 
identifying the compenents of a Single Business Company Strategy

RESOURCE

 a competitive asset that is owned or controlled by a firm

CAPABILITY or COMPETENCE

 the capacity of a firm to perform and internal activity competently through deployment

 of a firm's resources
.
COMPETITIVE ASSETS

when the resources and capabilities and are big determinants of its competitiveness and ability to succeed in the marketplace.

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..

DYNAMIC CAPABILITY
is the he ongoing capacity of a firm to modify its existing resources and capabilities or create new ones by:
1- improving existing resources and capabilities incrementally.
2- adding new resources and capabilities to the firm's competitive asset portfolio.


IS THE COMPANY ABLE TO SEIZE MARKET OPPORTUNITIES AND NULLIFY EXTERNAL THREATS?

SWOT ANALYSIs are powerful tool for sizing up a company's strengths and weaknesses, its market opportunities and the external threats to its future well-being.

SWOT Analysis Is a powerful tool for sizing up a firm’s:

Internal strengths (the basis for strategy)

Internal weaknesses (deficient capabilities)

Market opportunities (strategic objectives)

External threats (strategic defenses)SWOT Analysis Is a powerful tool for sizing up a firm’s

The Steps Involved in SWOT Analysis: Identify the Four Components of SWOT, Draw Conclusions, Translate Implications into Strategic Actions

Lastly, i want to share this video about this topic for u enjoy.... :)

thanks you..:)