Question

Explain why a global competitor with multiple profit sanctuaries is well positioned to outcompete a domestic competitor whose only profit sanctuary is its home market.

Please go into detail 400 words. Thanks!

Answer 1

Answer:

Global Competition: The competition between all the global players at international level is known as the global competition. Global competition is the top most level of competition in which all the world level players are available and the leader in global competition is the player leading the business at the international /global level.

Global Competitors are the players which are running their business at the international level in multiple countries and they have adequate financial position and they are capable in driving the large business processes in the world level to achieve further revenue for their business. Global competitors are open to the world level and they can explore any location of the world for their better revenue generation possibility.

Domestic competitors are the players which are leading their business in the domestic region only that is within the local region in which they have the coverage for their business. The domestic competitors are capable to lead in the local region only due to their expertise of local region and lack of expertise in global market.

The Global competitor with multiple profit sanctuaries is well positioned to outcompete a domestic competitor whose only sanctuaries is its home market because of the following reasons

• Global business exposure: The global competitor is more stronger than the domestic competitor because of his global exposure and application of better management technique and usage of better technologies.   
• Global market expertise and skill set: The global market expertise and skill sets helsp the global competitor to optimized their business as compared to the local competitors hence global competitors are positioned more strong as compared to the domestic/local competitors.
• High Financial Strength: The biggest benefit to the global competitor is that he has stronger financial position as compared to the domestic competitor, hence helped the global competitor to explore better business ways without any problem of fund.
• Higher influence at domestic levels due to global presence; The global competitor has high influence on the domestic consumers, hence global competitor can have higher sales and revenue generation than domestic competitor.
• Easy to take risks: Due to global exposure and strong financial position , the global competitor is capable in taking larger risks as compared to domestic competitor, and hence he can succeed easily in the market and competition.
• Multiple option to survive: The global competitor looks to be a player with multiple options, multiple skill sets, larger and wide exposure , higher expertise, thus all this makes him more stronger than the domestic competitor.