International Strategic Management Assignment sample
Introduction
In the technological world, several industries are going to profound a huge transformation and it will be effective for the future also. The production of various industries can be impacted through some revolutionary but the system can be produced by different methods. In the automobile industry, transportation is the required thing to conduct the business properly and for this car, sharing can be increased to different levels. The car-sharing industry can get lots of success in the automobile industry of London. The future strategy of this industry is so much power and for this, it can be helpful to create a foundation for future business success.
The marketing level of the car-sharing industry can be conducted into a different level and it can be impacted to future business strategy. The manufacturing process of Daimler (Car2go) and BMW (DriveNow) maintained the potentiality and successfully portraited the products (Gardiner, 2013). The contradictory thing is that the car-sharing industry maintains the cost reduction process in various ways and it will be helpful to maintain the business properly. In London, the industry can take a place to get proper market value as per the business strategy and set a great competition among the other industries.
The environment of the Car-sharing Industry as per the Five Forces Model
The car-sharing industry creates a huge segment in the UK and for this, the evaluation of this industry can be seen properly. It can be defined as a potential market strategy by combining the prospects of the business strategy. The proper business strategy and manufacturing process can be impacted to maintain the industry properly. To define the industry properly, the five forces model can be shown the process adequately.
(Fig. 1 Source – www.sukantk.medium.com)
The threat of new entrants: Medium
When a new business joined in the business strategy, it will be expected that the market level can be increased from a very fast day. So, it can be possible for the car-sharing market also. In London, the customer can depend on the service and the industry can carry a valuable reputation in the business market policy. There might be some possibilities to create a digitalization process and can be implemented in the manufacturing purpose to build the industry properly. There are some reasons why the entry-level of the car-sharing industry is medium –
- The participation of the govt. policies can be implemented in the business strategy to the entry-level and the market can face some challenges through this. In the car-sharing industry, it has to implement the govt. policies to maintain the proper business strategies.
- To operate a successful business strategy in the car-sharing industry, it has to be maintained economical scale properly. There might be some technological, functional properties be implemented to operate the stage properly but it can be helpful to get the high market level.
- To implement a new market strategy, it is also important to choose a proper location where the industry can properly grow. London has various locations to implement a proper car-sharing industry and it can be helpful to launch the service in the market.
The threat of substitutes: High
To get proper manufacturing service, it is also can be a possible thing that the third party can produce some materials to get the proper market strategy. It might be possible to conduct a proper business as per the car-sharing industry, get help by travel, cost-related, service-related, etc. Through these, it can be created a differentiation among the getting substitutes. In the car-sharing industry, the most element is the bicycle. The car-sharing industry can be dependent on the need for travel prospects and public transportation. In London, the car-sharing industries can be impacted by the use of smartphones and it can be travel-friendly. The market strategy can be a hugely challenging prospect to conduct the best service. London has the proper geographic location to get the proper substitution to implement in the market strategy, but sometimes it might happen that the internet connection cannot get properly and it can make a negative impact on the car-sharing industry.
The bargaining power of the buyers: High
The car-sharing industry is so much transparent in London and that’s why it is possible to get proper customer response. For this proper customer response, it can be impacted to the price structure, availability status, and also related points to maintain the market strategy. The buyers can get various access to get success and that’s why the bargaining power of the buyers is high in the UK as per the car-sharing.
The bargaining power of the suppliers: Low
As per the car-sharing industry of London, the suppliers can make the strategy to conduct the business for the long-term strategy. There might be some complexities that arise due to the global market policy of the car-sharing industries and the suppliers can start the bargaining process to conduct the business as per the policy. Due to supplier’s bargaining policy, the market strategy can get low of the car-sharing industry in London.
The rivalry among the existing competitors: High
It is the most probable thing in the car-sharing industry that it can create so much rivalry to maintain the market strategy properly. There are lots of compatible elements like – scope of price, proper accessibility, customer reviews, etc. that can be impacted in the business strategy in London. There are some reasons why the car-sharing industry has many competitors in the business market.
- The car-sharing industry is the proper market strategize industry in London. The industry has the potential to grab the market properly. The market of free-floating car-sharing can create a great impact on the business strategy.
- The car-sharing industry can maintain a proper cost structure and that’s why it can be implemented properly. By maintaining a proper cost strategy, it has various rivalries in the business market.
- The differentiation process is also helpful to conduct the business properly. There might be various differentiation processes to maintain the car-sharing industry properly. For this reason, the industry has a large number of competitors in the business market and maintains a sustainable environment in the business market of London.
So, this is the analysis of the car-sharing industry as per the five-forces model and it can be helpful to maintain the market strategy properly.
Value – Chain method for the car-sharing industry in London
The value-chain model can be implemented to get a proper idea about the whole market strategy of the car-sharing industry of London. Through this model, it can be effective to identify the different stages of the service model to get a proper idea about the business strategy. The value–chain process can be implemented in the car-sharing industry to produce a proper implication as per service policy.
(Fig. 2 Source – www.geektonight.com)
The value-chain analysis consists that the business management support system that can be helpful to combine the analysis into two different parts – primary activities and secondary activities. It is the prime analysis process to focus the market strategy and understand the pricing, locational activities to create a competitive situation. The value-chain activity can be defined into two various methods one is primary activities and the other one is secondary activities.
The primary activity requires the physical attribution of the product and maintaining the market strategy properly. The primary activity includes inbound logistics, operations, outbound logistics, marketing, and sales, and services. These are the primary elements to define the value-chain service of the car-sharing industry in the UK.
- Inbound logistics – as per the car-sharing industry, various parts, materials, use of the warehouse, the travel-friendly vehicle can be implemented as inbound logistics. The raw materials and their suppliers can be a part of this system and it can be helpful to maintain the car-sharing industry in the UK.
- Operations/productions – being an automobile industry, it is required to put some operations to maintain the car-sharing industry. The operation stage can be produced to input the final products. In the operation part, it is included the production of the cars, required machines to implement the car parts, car packaging system, assembling the proper model, testing the model properly, and giving some equipment for proper maintenance.
- Outbound logistics – the outbound logistics can also be implemented in the value-chain analysis of car-sharing. The activities are including in the outbound logistics are collecting the raw materials and parts, storing the required elements that can be helpful for the future. The outbound logistics can be implemented to input the materials in the warehousing, handle the proper materials, maintain the delivery policy, proper vehicle options, process the order with proper scheduling. So, these are also helpful to conduct the proper service.
- Marketing and sales – in the business industry it is a required thing to conduct the proper marketing and sales industry in the corporate components. The marketing and sales are depending on the customer’s requirements and the production of the car-sharing market can be implemented in the marketing process. It includes car advertising, proper promotion, creating proper salesforce, proper channel selection to conduct the marketing and sales properly, and also it requires channel relations and pricing.
- Services – in the car-sharing industry, it is also important to give proper service that can be helpful to maintain the marketing level. This process includes various service requirements like – producing various products, installation process, repairing the produced model, proper training, proper supply of the parts, and the adjustment of the products. Through these services, the car-sharing industry can be increased the business strategy progressively.
The secondary activity requires the conductive way by which the primary activity can be done properly. The secondary activity works like a support activity. It includes procurement, development of technology, human resource management, firm infrastructure, etc.
- Procurement – in the car-sharing industry, it is an important thing to conduct the raw materials, supplies the products, even proper equipment, laboratory works, etc. procurement can be work as a primary activity but it can be implemented the raw materials things also. So, this is the best option to conduct the proper service.
- Development of technology – in this fastest growing world, it is an important thing to develop various technologies in the car-sharing industry. It is a necessary thing to require the machinery process in the car-sharing process. Various software companies are there to develop the car-sharing industry. Through these processes, it can be helpful to conduct the proper service.
- Human Resource Management – in every business organization, it is the main part to have a human resource management system. The management system can be operated in various ways. Human resource management can do the activity of recruiting the proper candidate, conducting proper training for the employees, developing the management system, conducting proper compensation, the relation between the labourers, conducting some programs to enhance the skills, etc. It is very much important to have a proper management system in the car-sharing industry.
- Infrastructure of Firm – the infrastructure of a firm can be the other activity to maintain the industry properly. There are lots of challenges that can happen in the firm infrastructure policy. It includes implementing an organizational structure, it requires some strategic planning, it can be included the financial strategy that can be helpful to maintain the quality also. Through some information systems, the car-sharing industry can be updated. According to Johnson and Sholes (2002), the production of raw materials can be also a part of the firm infrastructure and it can be helpful to maintain the organization’s management.
The value-chain analysis can be helpful by being implemented in the car-sharing industry. It is very much effective to analyze the proper organizational prospects. So, through this process, it can be helpful to know about the value of the car-sharing industry.
Various entry modes evaluation
In an organization, it is a required thing to conduct the marketing policy at the international level, there are various ways to conduct the system. To conduct a business in the international sector, it is important to be known about entry-level marketing. Several organizations have different level entry modes to conduct business in the international market. To be part of different entry modes, it is required to be known about the organizational circumstances, required goals, proper objectives, etc. Through these processes, the organization can be identified the different entry-level modes to conduct business in the international market.
There might be some changes to conduct a business on an internal and external basis. Various firms can be implemented to conduct the market strategy properly and the expanding factors can be affected in the marketing purpose. There might be some legal policies, agreements that can be conducted at the international market level. Some steps can be followed to conduct a business adequately at the international market level.
(Fig. 3 Source – www.superheuristics.com)
Exporting – exporting is the main procedure to conduct international business properly. It is a border to sell domestic goods in the international market (Cavusgil, 2004). There exporting can be divided into three different modes – indirect exporting, direct exporting, and cooperative exporting. Indirect exporting is the low-risk mode of entering the international market. Various organizations like to promote indirect exporting to conduct the business properly. It is the renowned procedure to promote a business in the international market. It is very much important to conduct the business properly. In some situations, the risk level can be high to conduct the business at the international market level. Exporting can be the cheaper process to conduct international business. Direct exporting can maintain the risk sometimes. It is an effective mode of entry for those organizations that conduct their business in the international market but conduct limited risk methods. Cooperative exporting can be helpful to conduct business in the international market but as per the organizational prospects. The exporting process can be beneficial to provide various goods to get an international complement. It can be helpful to get a successful business strategy.
- Licensing – to conduct a business in the international market, it is a required thing to get a valid license. A license can be helpful to create a bordar at the international market level. It can be conducted through some agreements and legal policies. To conduct a business in the international market, the license can be helpful to provide the security of the goods and it can be helpful to deal with the right party. The risk factors can be decreased by the licensing process. It can be affected through some economic and political approaches. But the licensing process can be maintained the profit level and create the future market as per the competitors (Brouthers, 2013).
- Franchising – it is the newly invented process to do business in the international market. It is also an entry mode to conduct a business in the international business policy. The franchisees pay the fees to the franchisers to conduct a business by providing proper services (Kotler & Armstrong, 2012). There might be some contracts included in the franchising option and it will be helpful to conduct the business in the international market. In the franchising option, there are lots of advantages that can be implemented in the international market strategy. It can be also decreased the risk factors to conduct the business. This is a famous model of entry by maintaining the security prospects. In many organizations, franchising can be implemented as in renowned entry mode of the international market.
- Joint Ventures – many organizations can choose to work in joint ventures and it can be also effective to the international market. There are various modes to conduct joint ventures in the business market. Joint ventures can be impactful for the two or more organizations and by doing this the organizations can know about each other’s strengths or weaknesses and provide proper services. There might be some common objectives between the two companies and can be effective to decrease the risk factors. By applying proper technology, the joint venture can be developed in the international market. In the international market, it can be effective to conduct the business properly by providing proper restrictions and legal aspects by the government. A joint venture believes in the commitment and it will be effective successfully. So, it can be said that joint ventures can work adequately as an entry mode in the international market.
- Direct investing – direct investing is also an entry-level method in the international marketplace. To conduct the business in the international market with 100% ownership. In direct investing mode, the organization can be maintained the purchasing power through this investing mode. In the entry mode, the direct investing process might be created some risk factors. It is a risky way to conduct business in the international market. In the direct investing process, it might be implemented high control, commitment, legal presence, etc. So, it can be said that to create a proper business in the international market, this entry-level can be affected in some ways.
So, these are the entry modes to conduct the business properly in the international market. Through the study, the proper entry mode of the international market is the licensing process. By conducting the license system, the risk factors can be decreased in various ways. Not only the risk factors but also effective to state some legal aspects also. So, to conduct business in the international market, it is important to verify the entry modes properly.
Creating Shared Value
As per the SEAT, it is creating some revolutionary methods to maintain the automobile industry properly. It can be effective to maintain the market value in the international aspects also. The ‘Minimo’ can be developed by maintaining the car and automobile services. In this case, the service can be provided to the international market. It can be also helpful to increase the market strategy.
As per the value report, SEAT’s can create an appropriate result to conduct the business in the international market. The company’s profile made the value of the international market. The company maintains honesty, living prospects, diversity, proper communication etc. The company maintains sustainable pillars to maintain the market value. The employment procedures of this company can be integrated into the prospects of the strategies. The manufacturing process of this company can be effective to the other companies also. The company also maintains security. The environment of this company can be impacted by the international market policy.
The company maintains some activities that can be implemented in the company’s environment. The company believes that planting various and more trees can be helpful to maintain the environment. So, the planting trees process can be implemented by the employees and it maintains the workplace also. The company also believes to reduce wastes as much as possible. Reducing wastes can be effective to maintain the proper environmental nature. The company states the recycling process and reuse them. Some wastes can reuse properly after the recycling process. The company also believes to overcome every challenge by conducting a proper management process. These are the same processes to produce the proper environmental systems to conduct a proper business.
SEAT can be maintained by some activities and it can be valued by the different methods of the process. It can be helpful to conduct business in the international market. In the automobile industry, it is very much effective to conduct business properly. Some key components are there that can be helpful to conduct the business properly. The growth and innovation process can be properly contracted in various ways. It can be helpful to maintain the social value also by conducting the economical prospects also. There might be some innovative ideas that can be conducted in the international market value and maintain the business strategy. In various organizations, the shared value can be represented differently but the report can be impacted in some ways. There must be some societal benefits included in the shared value. So, it is very much important to conduct business in the international marketplace.
Conclusion
At last, in the conclusion part, the whole study is implemented through some processes. The car-sharing industry is increasing day by day and it can be impacted in various automobile industries. In the UK, the car-sharing industry can be implemented by using various technologies, methods etc. To conduct the analysis process properly, there are some theories and descriptions. To know the car-sharing industry properly, the five forces model can be described briefly in this study. Through this brief discussion, the idea of the car-sharing industry can be identified properly. After that, by conducting the value-chain method, the idea of the SEAT can be defined properly. Then there are some entry modes of the international market and lastly, it described the creating shared value. So, to conduct business in the international market, it is important to maintain the proper strategies of the business market.
References
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