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

Few practical strategies are as:

• Aligning Assets with Industry Characteristics- go for technological up gradations and better operational processes, so that cost saving plus profit margins increase
• Try for mergers or strategic partnerships with some companies of similar business/ resources, use it as common strength against international competitors
• Concentrate on few micro or sub segments basis of your core competencies to increase your market share and market penetration
• Avoid any high transportation costs
• Focus on changing Consumer preferences and if they can be adapted and satisfied and what is the scope of it. A cost benefit analysis is must before taking any further action
• Carry out International sales in those areas which bring some advantages of scale. Penetrate those areas where competitor is not yet present or is low performing. The sooner you build your brand there, more loyal customers you can generate. It will start acting as a cash cow then
• Adopt Glocalization strategy= globalized thinking + local strategy. It has always been helpful to any brand, as it concentrates on best use of local resources like manpower, infrastructure facilities, transportation options, taxation rules and benefits (like special economic zones provide tax benefit in case of exports)
• Use decentralized techniques to make optimum uses of company resources, country specific actions and receive the benefits accordingly