Week 8

Seventh lecture (19th October 2013)

Tons of work is waiting, Ganbatte neh....

Chapter 7: Strategies For Competing In International Markets.
This chapter is about how company would go to international market. companies decide to enter foreign markets based on five factors which is To gain access to new customers, To achieve lower costs through economies of scale, experience, and increased purchasing power, To further exploit core competencies, To gain access to resources and capabilities located in foreign markets and To spread business risk across a wider market base.

Why competing across national borders makes strategy-making more complex. This is because first, Different countries have different home-country advantages in different industries. Second, Location-based value chain advantages for certain countries. Third, the differences that exist in government policies, tax rates, and economic conditions. Forth, Currency exchanges rate risks. Fifth, Differences in buyer tastes and preferences for products and services

The primary reasons company enters foreign market because company wants to put product or service in many market. This is because as the famous proverb says ‘’if you put all eggs in one basket, thus the basket is fall, then all the eggs is broke down. Hence, in order to prevent this you need to put in many basket’’.

Last but not least, another thing that capture my heart is regard the video shown by Miss Ummi in the lecture. This video is concerning Oreo product strategies marketing, same product but new packaging, new shape from just round biscuit to wafer, long shape biscuit, square and many more. This is proven effective because the profit of Oreo product sales is boost up.