competitve advantage
“A firm that already has sustained competitive advantage in its domestic market may not have the same advantage in an overseas market. Discuss the issues that this creates for a firm, and how it might exploit its resource advantages to secure successful market entry and create competitive advantage in a new overseas market.”
With the global trade network more integrated, according to Pearce and Robinson (2009), firms tend to enter foreign market to gain more profit due to the maturity of domestic market, excess capability, and potential purchasing power in foreign market. Therefore, as a firm has already achieved success in its domestic country it might consider enter a new market. Before it operates in a new market, it has to consider the barrier of market entry, such as the barrier of political, social, economic or technology in a new market. And as foreign entry decision (Peng, 2009) model presents three aspects: where, when and how should be considered before enter in a new market. In addition, as a manager of a company should adjust its competitive advantage to adapt different market. Based on the study of Hill (2013), changes in the forces which include macroeconomics, social, technological, global, political and legal, and demographic may give great influence in competitive force model. Therefore, the ability of a firm to solve problems by the impact of different forces then build new competitive advantage by its resource advantage and competences significant as it enters a new overseas market. This essay will present some specific example of the firms which may enter a new overseas market and face different issues during the process of entering a new market and offer solutions to each issue.
Price wars are common in any industry which is a common issue to be considered before enter a new overseas market, moreover, base on five force framework, in order to increase the ability of competing with rivals in industry, the ability of rivalry among competitors
With the global trade network more integrated, according to Pearce and Robinson (2009), firms tend to enter foreign market to gain more profit due to the maturity of domestic market, excess capability, and potential purchasing power in foreign market. Therefore, as a firm has already achieved success in its domestic country it might consider enter a new market. Before it operates in a new market, it has to consider the barrier of market entry, such as the barrier of political, social, economic or technology in a new market. And as foreign entry decision (Peng, 2009) model presents three aspects: where, when and how should be considered before enter in a new market. In addition, as a manager of a company should adjust its competitive advantage to adapt different market. Based on the study of Hill (2013), changes in the forces which include macroeconomics, social, technological, global, political and legal, and demographic may give great influence in competitive force model. Therefore, the ability of a firm to solve problems by the impact of different forces then build new competitive advantage by its resource advantage and competences significant as it enters a new overseas market. This essay will present some specific example of the firms which may enter a new overseas market and face different issues during the process of entering a new market and offer solutions to each issue.
Price wars are common in any industry which is a common issue to be considered before enter a new overseas market, moreover, base on five force framework, in order to increase the ability of competing with rivals in industry, the ability of rivalry among competitors
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