Crafting a strategy to compete in one or more countries of the world is inherent
ID: 384730 • Letter: C
Question
Crafting a strategy to compete in one or more countries of the world is inherently more complex because of (1) factors that affect industry competitiveness that vary from country to country, (2) the potential for location-based advantages in certain countries, (3) different government policies and economic conditions that make the business climate more favourable in some countries than in others, (4) the risks of adverse shifts in currency exchange rates, (5) cross-country differences in cultural, demographic and market conditions.
Discuss this statement using an example of a company that has been successful in achieving international growth and has overcome the challenges outlined above.
Explanation / Answer
Answer:
Crafting a strategy to compete in one or more countries of the world is inherently more complex because of following factors. The examples of companies which have overcome these factors are Chinese Product Companies.
China products are exported to most of the countries of the world with higher success rates and growth achieved by these Chinese companies in the world. Today everyone knows that the Chinese products are available in each and every part of the world with their attractive/competitive prices against the value chain they extends.
The Chinese companies were able to develop the strategies which were helpful in meeting the factors that are due to industry competitiveness that vary from country to countries. Hence the Chinese companies were able to face the factors of industry competitiveness in multiple countries. So their strategies were very diverse which is capable of meeting and resolving these issues.
These Chinese companies were able to meet the potential of local benefits to the local organizations in the countries. The Chinese companies were able to place their product in such a way that these Chinese products overshoot the local benefit of local companies in their countries.
The Chinese companies were able to meet the challenges due to local government policies, political issues and economical issues of different different companies in the world and Chinese product shown heavy growth in the world. Chinese products were making the competition tough for the local players and Chinese products won the race in local climate/culture of their local players in different countries.
The Chinese products or companies were able to digest the currency conversion rates and save the product growth from the currency impacts.
These Chinese companies were able to develop the strategies which were able to resolve the issues faced due to cultural, demographic, market conditions in local market of individual countries.
So though these factors mentioned above are essential and critical for any company to develop the strategy and achieve the growth in other countries. But Chinese companies had done a great amount of work on their strategies and achieved the business results in most of the countries of the world.