Question

Identify and briefly describe a local company's strategic options in competing against global challengers if industry pressures for globalization are strong. Please go into detail, just do not list items. 300-400 words. Thanks!

Answer 1

answer-

A local company is a company which operate in local area like state, city etc. these local company face business pressure from big competition like local retailer face challenge from Walmart or wholefoods stores. so they need to adopt strategy and have options so that they can compete with them or defend them in strategic manner.for that they have some strategic options like-'

Use of local resources in their favor. company can use local labors in state to hire them at low cost and use them for supply and distribution of their products or services at low cost. it will help the company to model that exploit the shortcomings of local distribution networks and infrastructure. supply and distribution is very necessary because it involves meeting of customer demands on time. when demand is met on time then customer like to purchase from there.

for example- if in walmart store or any big retail store, you did not find a product because of out of stock and then small retailer fulfill your need on time then it create sense of satisfaction in customers and they come to your store more often.

the second is utilize keen understanding of local customer needs and preference means local business has to identify needs of customers and their preferences and try to fulfill them for example if a person likes to purchase healthy gears, clothes and proteins powder then local business should have such products in stock to meet thier demand.

the third is dodge the rivals by entering into niche market is the best option because many big business does operate at global level and they do not get bothered into niche so if you identify a niche and meet the needs of customers by your business model then you can earn profit and become market leader of that niche.

*hope this would be helpful.