Question

Read chapters 5-8 and address the below review questions:

Please address the below review questions giving quality answers that show mastery of the concepts being discussed, using clear logic, and supporting facts. Also, the answers must directly address the questions.

1. What is market commonality? What is resource similarity? What does it mean to say that these concepts are the building blocks for competitor analysis?

2. What competitive dynamics can be expected among firms competing in slow-cycle markets? In fast-cycle markets? In standard-cycle markets?

3. What are the different levels of diversification firms can pursue by using different corporate-level strategies?

4. What four factors are determinants of national advantage and serve as a basis for international business-level strategies?

5. What are some global environmental trends affecting the choice of international strategies, particularly international corporate-level strategies?

Answer 1

No:1

• Market Commonality:

Market Commonality refers to the number of markets a firm and its competitors are jointly engaged with.

• Resource Similarity:

Resource similarity refers to the situation where a firm's tangible and intangible resources are compared both in terms of type of quantity and amount with its competitors.

• Market Commonality & Resource Similarity are the building blocks for competitor analysis:

Market Commonality represents how many firms are involved in a market and shows how they are working and competing with each other, on the other hand, Resource similarity compares the resources which create an extensive competition between the firms. Every firm in the market is extremely conscious of the competitor's strategies and fight against each other for market shares and vice versa. Market commonality and resource similarity are helping firms to analyze their competitor's business strategies and act as the building block for competitor analysis.

No.2

Competitive dynamics in slow-cycle markets:

The term Competitive dynamics refers to the set of actions and reactions of a company in a competitive environment. In slow cycle Market, the life cycle of a product is much longer. So the companies are engaged in making business strategies for a long period of time

Competitive dynamics in fast-cycle markets:

In a Fast Cycle Market, Competition is more fierce between the competitors as the life cycle is fast so companies are engaged to create dynamics to make new markets also upgrading features to keep existing or old consumers to them. So, they are making decisions faster to make any changes also engaged in the continuous launching of new products or attraction.

Competitive dynamics in Standard-cycle markets:
In Standard-Cycle Market companies are competing to attract more attention from the audience. As the life cycle of the product or services comes standard, so they introduce new products or up-gradation after a period of time.

No.3

• Diversification:

Diversification is a good competitive strategy where a company may enter new product lines of business to gain a competitive edge over the competitors or discourage them by entering before their arrival.

• Different levels of diversification firms can pursue by using different corporate-level strategies:

The 3 major types of diversification strategies are discussed below:

1. Concentric Diversification: This type of diversification refers to the fact where new product lines and services are introduced with a condition that they will be related to their existing products and services offered by the company.
2. Horizontal Diversification: This type of diversification refers to the situation where the company introduced unrelated product lines for the existing customers.
3. Conglomerate Diversification: his type of diversification represents a growth strategy in which new products and services are added which are significantly different from the organization's present product and services.

No.4

Four factors determinants of national advantage that serve as a basis for international business-level strategies:

Four factors that are determinants of national advantage and serve as a basis for international business-level strategies are discussed below:

1. The role of the Government: Govt encourages companies for business growth and high expectancy of products and encourages to sell their product not only domestically but also international market by introducing hassle-free and easy-going export and import policies.
2. Competitive Market: Creating a competitive market domestically to improve the quality of the product so that they can perform well in the global market equally.
3. Natural Resources: Effective use of natural resources is also the determinant factor of national advantage which serves as a basis for international business-level strategy.
4. Low-Cost Structure: Another important factor is to create low-cost structure of the product which will assure the great profit and will also attract attention globally.

No.5

Global environmental trends affecting the choice of international strategies:

As more industries become global, strategic management is becoming an increasingly important way to keep track of International development and position the company for long term competitive advantage, large corporations are now using matrix structure. Matrix Structure is now the best solution for managing any type of Organisation and project.