Export control strategy
Discuss about the Making Sense of Strategy for Goods and Services.
The first question deals about the policies that will be required to evaluate in terms of supporting and local companies in the chosen country of Kuwait. In the era of the global market expansion, it is very important save the local companies. Some important policies will be discussed here in this section.
The export of the goods and services should be controlled by the governments. These goods are generally used for the cause of the civilians. If all these goods are bought from the international companies, the local companies will suffer huge setbacks indeed. The use of the strategic goods should be restricted in the best manners possible. This will enable the local companies to thrive better instead. The computer encryption technology should be used properly as well (Baden-Fuller and Haefliger 2013). The military technology can be used in this manner as well. Campaigns should be made in order to make the people of the local country aware of the negative results of the foreign direct investments. The economic pressure of the county should be managed in order to maintain the market of the local companies instead. The effect of this strategy can be felt at the both sides. However, the implementation of this strategy will be very important for the local companies to gain the competitive advantage over the expanding companies in the global markets (Baden-Fuller and Haefliger 2013).
One of the most important matters in the international expansion strategies of the companies is the foreign direct investment. The different matters that can encourage the foreign direct investment of the companies are the development of the technology, knowledge of the employees and the other things (DeVries and Smith 2012). The international expansion of the companies also can provide jobs to the people of their target nations. The local companies should also look to implement the technological innovation processes indeed. This will definitely help the local companies to reach the more number of customers. The competitive advantage of Nations tool by Michael Porter can be a very important strategy in determining this as well. The new innovation strategies should be implemented in case of this organization as well. The leaders of the companies should always be much dynamic so the organization can achieve the best results in this competitive environment (DeVries and Smith 2012). The new job opportunities should be created by the local organizations and provide them with good opportunities for earning. One way of saving the local businesses is the merging with other big businesses. This will enable the business leaders to move towards the diamond. This will be highly important for the organizations to encourage the innovation process (Wagner and Hollenbeck 2014).
Trade politics strategies
The international business organizations will definitely try to expand into the local domestic markets of the countries. However, it is the role of the governments of the countries to make arrangements by which the local businesses will be able to sustain (Wagner and Hollenbeck 2014). The Government has to play a major part in this context and prepare some important strategies by which the organizations will be able to make the proper profits and stop the international organizations from entering the local market indeed. The Government might deregulate the competition within the market and support the domestic rivalry instead of the international rivalry (Campbell, Coff and Kryscynski 2012). This should be effective since all the domestic companies will feel the urge to provide the best services for their own good indeed. The Government can make important policies by which the redesign the objectives of all the foreign investors, the employees and the managers (Campbell, Coff and Kryscynski 2012).
These policies will increase the competition in the local market as well. They can advice the industry leaders to make the necessary mergers that will be very important for the organizations to sustain in this competitive environment (Raines 2017). They can also implement the anti-trust laws that will help the organizations to thrive well. The government can impose the state control over some domestic organizations as well (Alfaro and Johnson 2012).
The need for increasing the domestic rivalry is immense in this section because the organizations will need to compete in a very tough and profit oriented market. One of the biggest advantages in applying the domestic rivalry in the countries is the low factor costs. The local competitors can very easily get in touch with the customers. This thing is very important for building a relationship of trust and faith with the customers (Alfaro and Johnson 2012). The geographic closeness can also work as a positive thing in this aspect indeed. The local and domestic markets can be able to attain the important assistance from the government as well. This will motivate them to provide the best services and products at lower costs to the customers (Jarillo, 2013). In this case the foreign direct investment will not work properly as well. If the local competition increases, the local companies will increase their revenue as well. The new competition laws can be opened in this case as well (Hurn and Tomalin 2013).
The antitrust competition laws are very important in the context of the domestic markets. The global firms will always look to have a share in the profitability of the local markets. This is why they will look to gain the customers of those local companies as well. The political and ideological cultures of the country are very much crucial in this scenario as well. The local companies will have to make the competition in a way that they can work very closely with these international firms (Carbaugh 2013). They must work in a manner that they should stop the global organizations from growing too large in the target countries. The strategies like predatory pricing, excessive market concentration and others should be followed properly as well. The different regulations of the Government can also impede the global markets from expanding into these local markets as well.
The role of the Government
The capacity of the domestic firms should be should be increased in terms of the global operations. The organizations in Kuwait should always try to expand into the international markets. The organizations should follow some strategies by which they can make good profits in the foreign markets as well (Huang and Sarigöllü 2014).
The financial planning of the company has to be made properly to attract the customers. If the companies keep the price of the products higher than their local competitors in the other countries, they will not be able to attract the customers. (Lam 2014).The price skimming strategy can be used here to make the products popular enough. The strategies should be implemented in the way that the company can be able to gain the competitive advantage as well.
One of the most important barriers of doing business in the other countries is the cross-cultural communication (Carbaugh 2013). The organizational managers should be trained properly so they can be able to handle the issues that arise within the organization. The managers should build a relationship of fellow feeling between the people of the organization so they can co-exist very well. This will be highly important for them. The challenges to be faced by the employees should be overcome with the help of the hierarchy managers (Carbaugh 2013).
One of the most important issues in the better expanding the market of the company in the foreign markets is the proper risk management program. Many adversities will have to be faced by the companies when they tend to expand into the new markets. The political unrest may be a huge issue in the country to which they might expand (Lam 2014). Thus the organizations should make proper arrangements about how they will cope up with these challenges. It might occur that the organizations will not be able to deal with the technological challenges. They might not get the help of the proper technology as required. In these circumstances, they must be able to use some strategies that they can cope with the challenges (Naeem, Bilal and Naz 2013). The economic challenges like the inflation and global recession will have to be tackled properly to build a successful consumer base as well.
The companies that are expanding into new markets should always understand the market condition of those countries (Huang and Sarigöllü 2014). This should enable them to make the proper marketing mix for their products and services. The economic structure of the target country should be understood by the company and then they should fix the price of their products properly (Naeem, Bilal and Naz 2013) The target market segmentation will have to be done accordingly as well. The inventory of the company should be looked after properly and they should employ the local people so they can bring down the employment costs and focus on productivity. They should base their stores at the most popular places of the country to gain the popularity.
References
Alfaro, L. and Johnson, M.S., 2012. Foreign direct investment and growth. In The evidence and impact of financial globalization (pp. 299-309).
Baden-Fuller, C. and Haefliger, S., 2013. Business models and technological innovation. Long range planning, 46(6), pp.419-426.
Campbell, B.A., Coff, R. and Kryscynski, D., 2012. Rethinking sustained competitive advantage from human capital. Academy of Management Review, 37(3), pp.376-395.
Carbaugh, D. ed., 2013. Cultural communication and intercultural contact. Routledge.
DeVries, K. and Smith, R.D., 2012. Medieval military technology. University of Toronto Press.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer, New York, NY.
Hurn, B.J. and Tomalin, B., 2013. What is Cross-Cultural Communication?. In Cross-Cultural Communication (pp. 1-19). Palgrave Macmillan, London.
Jarillo, J.C., 2013. Strategic networks. Routledge.
Lam, J., 2014. Enterprise risk management: from incentives to controls. John Wiley & Sons.
Naeem, B., Bilal, M. and Naz, U., 2013. Integrated marketing communication: a review paper. Interdisciplinary journal of contemporary research in business, 5(5), pp.124-133.
Raines, P. ed., 2017. Cluster development and policy. Routledge.
Wagner III, J.A. and Hollenbeck, J.R., 2014. Organizational behavior: Securing competitive advantage. Routledge.
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