Question

Compare the advantages of locating foreign operations to avoid where competitors have gone versus locating where competitors are.

Answer 1

Advantages of locating foreign operations to avoid where competitors have gone =

This decision will help the company to focus more on satisfying the needs of the customers rather than dealing with the competition

The expenses spent on competition dealing such as advertising, sales promotion can be saved

It will provide the company with a free field to operate without considering the competition in the market

The company will have better bargaining power with both the customers and suppliers

Advantages of locating where competitors are.=

It will provide greater resources to the company as the preexistence of the competitor will facilitate better services and supplies of the material

The company has to spend on developing special competencies to beat the competition and thus it will provide an opportunity to the firm to improve and acquire operational and strategic excellence.

Thi will the firm to be more creative and innovative that can also be sue din other markets to attarct the customers