Global Marketing and Sales Assignment Sample
Introduction
A business model defines some ways or strategies that are useful for organisations to control variable problems that are related to social, cultural, political and economical factors. In order to run business in the international market, these problems impacts on an organisation’s rules and policies. In global business models’,
The Diamond model and the Uppsala model are most appropriate for gaining more knowledge about the worldwide market, and its risk factors. This study will focus on a Swedish company, named Tata consultancy services and will try to know some essential things that this company has used for its international business.
This report will also focus on some importance of barrier of the above models and try to know the importance of the Uppsala model to today’s market.
Discuss and compare two international theories for international business
Most of the business organisations want to do their business in the international market because there is a large number of customer and that are useful for gaining more revenue. In order to get these competitive advantages, many famous companies like Tata consultancy service has followed a renowned model named The Diamond model.
Explain the Diamond model
Figure 1: The Diamond model
(Source: Alavi et al. 2020)
The Diamond model is an advanced model that is made by a famous economist Porter. This person specially made this model for the international market, and this is also useful for those companies which expand its market in an international context (Alavi et al. 2020).
In this model, it includes some steps or factors that all foreign companies are facing during organisational activities, such as
Firm strategies and rivalry
It is one of the most important factors for international companies because business stakeholders make some strategies to compete with their rivalries.
This strategy can be related to investment policy, budget-related policy, related financial policy, marketing policies, production or services policies (Chung, 2016). In that situation, all the companies are trying to provide the best product and service to attract more consumers, but in order to this, the companies need to control their costs.
In Sweden, there are many rivalry companies of Tata consultancy services, such as HCL Technologies, Infosys Ltd and many more. Therefore, in this phase of this model, the discussion is focused on some strategic ways to compete with its rivalries.
Condition of demand
It is also an essential fact for international businesses that means, and it can be said that people’s interest for purchasing a product is the most critical thing to gain better revenue for a company (Grubb et al. 2020).
Therefore, in order to start a business in the international market, the stakeholders need to analyse the demand for the market for their products or services because it is a responsible factor for earning revenue in future.
The stakeholders of TCS have also applied this same method to expand business in Sweden, and now this is one of the famous companies in this country.
Related and supporting industries
In order to expand business in the international market, the financial situation is the most salient fact for a company. Therefore, sponsorship can be helpful for those companies to make financial stability to grow business in other countries (Luo, 2020). Therefore, that is also an essential fact for a company to improve the business in the international market.
Factor input conditions
In this phase, the discussion has a focus on some factors that are also important for international business, such as government rules and policies, taxes and many others (Grubb et al. 2020). The stakeholder of Tata consultancy service has also followed this factor before spreading business in Sweden.
Concept of the Uppsala model
It is also an essential model for international business, and it includes two other theories, such as the Network theory and International entrepreneurship theory (Luo, 2020).
Network theory
In this theory, it has discussed that there are some factors that are also essential for international business, such as contractor, suppliers and many others (Forsgren, 2016). That means this model claims about the availability of raw materials or improvement of infrastructure is also an essential thing for international business.
International entrepreneurship theory
In this theory, it has focused some business rules and government policies for controlling business activities in other countries. These rules and procedures are different for all states along with their different characteristics, and it is too hard to understand all. Therefore, the stakeholders of the company need to be more concerned about that these policies, otherwise, it can affect their financial activities and organisational systems in future (Refer to Appendix 1).
Different in these models
After analysing the above discussion, it has shown that The Diamond model helps generate a more fruitful idea about the international market. It is also easy to understand all the factors that are essential for the global business environment. It also can be said that The Diamond model describes advance processes and techniques that are also helpful for expanding business for the worldwide market.
On the other hand, The Uppsala model is a traditional theory that also defines the same process and techniques. The Diamond model defines, but it is too difficult to understand. It also does not deliver any explicit knowledge about the international business process, and for that, it is not helpful for today’s business environment.
Today’s business environment is more competitive, and for that, the stakeholders do not want to waste any times to find a more profitable way. Therefore, in that situation, The Diamond model is a more straightforward process compared to The Uppsala model to get more competitive advantages from the international market.
The stakeholders and other administration of Tata consultancy service are also following The Diamond model to control its business properly. Therefore, this company now operates its business in 45 different countries, and it also generates a massive amount of revenue in every financial year.
Identify and discuss a theory to illustrate both general approaches.
In order to illustrate the above both theories, then Porter’s competitive advantage can be more authentic theory for generating better Idea about these theories (Vahlne and Johanson, 2017). In these theories, it has mentioned some factors that a CEO can face while expanding their business internationally.
On the other hand, in Porter’s competitive advantage theory, it also focused the same ways or rules to get competitive advantages. For example, in those theories, it is mentioned that during the opening business in other countries, the CEO of the companies can face competitor’s activities, and that can be an issue for this company. In order to mitigate this risk, the management of the company can enhance its products or services, and that has mentioned in Porter’s competitive advantage theory.
As suggested by Coviello et al. (2017), Porter’s competing advantage theory is comparatively easy than other methods because it delivers all the process and factors briefly and adequately.
Therefore, it can be said that Porter’s competitive theory is a bunch of The Diamond model and The Uppsala model, and that is also helpful for understanding quickly.
In Sweden, Tata consultancy service is one of the famous companies which have to follow The Diamond model. However, for mentioning the traditional marketing process, most of the companies are now avoiding The Uppsala model because this model is not appropriate for today’s business environment with is more competitive and changeable than the previous days (Hult et al. 2020)
Therefore, it can be said that The Diamond model is more advanced and sustainable than The Uppsala model and all the company needs to follow it to get more advantages from the competitive market. The Uppsala model is also useful for international business, but it cannot apply for this competitive market.
Conclusion
From the above study, this can be concluded that The Diamond model is more advance than The Uppsala model. The Uppsala model is also created for understanding business rules and policies in the international market. Still, it is not applied to today’s business, which more competitive than then previous days.
It does not deliver a more straightforward process as The Diamond model, and it does not show any process to get more competitive advantages.
The theories that are included in this model, such as network theory and international entrepreneurship theory, are also not able to provide any sustainable ways for the global business. Therefore, The Uppsala model is not for today’s business environment.
Whereas, Porter’s Diamond model and Porter competitive advantage theory are most helpful for collecting better knowledge about the international market. It is also a more comfortable process compared to The Uppsala model.
On the other hand, Porter’s competitive theory is also useful for knowing some ways or strategies to get more advantages from this competitive market. Therefore, the management of Tata consultancy service is now following this model, and that is also useful for them to earn more revenue than the previous financial year.
After this study, it can be said that The Diamond model is more beneficial to get more advantages from this competitive markets compared with The Uppsala model.
Reference list
Alavi, A., Shokri, M., Zhiani, B. and Zhiani, S., (2020). Analysing competitive advantage of Iranian automotive industry using Porter’s diamond model, case study: Iranian car manufacturers. International Journal of Business and Systems Research, 14(3), pp.298-313. Available at https://www.inderscienceonline.com/doi/abs/10.1504/IJBSR.2020.108269 Accessed on 10.8.2020
Chung, T.W., (2016). A study on logistics cluster competitiveness among Asia main countries using the Porter’s diamond model. The Asian Journal of Shipping and Logistics, 32(4), pp.257-264. Available at https://www.sciencedirect.com/science/article/pii/S2092521216300864 Accessed on 10.8.2020
Coviello, N., Kano, L. and Liesch, P.W., (2017). Adapting the Uppsala model to a modern world: Macro-context and microfoundations. Journal of International Business Studies, 48(9), pp.1151-1164. Available at https://link.springer.com/article/10.1057/s41267-017-0120-x Accessed on 10.8.2020
Forsgren, M., (2016). A note on the revisited Uppsala internationalisation process model–the implications of business networks and entrepreneurship. Journal of International Business Studies, 47(9), pp.1135-1144. Available at https://www.diva-portal.org/smash/get/diva2:957477/FULLTEXT01.pdf Accessed on 10.8.2020
Grubb, A.R., Brown, S.J., Hall, P. and Bowen, E., (2020). From deployment to debriefing: Introducing the DIAMOND model of hostage and crisis negotiation. Police Practice and Research, pp.1-24. Available at https://www.tandfonline.com/doi/abs/10.1080/15614263.2019.1677229 Accessed on 10.8.2020
Hult, G.T.M., Gonzalez-Perez, M.A. and Lagerström, K., (2020). The theoretical evolution and use of the Uppsala Model of internationalisation in the international business ecosystem. Journal of International Business Studies, 51(1), pp.38-49. Available at https://link.springer.com/article/10.1057/s41267-019-00293-x Accessed on 10.8.2020
Luo, Q., (2020). Research on the Application of Employee Incentive Diamond Model in the Context of Big Data. Available at https://webofproceedings.org/proceedings_series/ESSP/ICEBMI%202020/IM1032.pdf Accessed on 10.8.2020
Vahlne, J.E. and Johanson, J., (2017). From internationalisation to evolution: The Uppsala model at 40 years. Journal of International Business Studies, 48(9), pp.1087-1102. Available at https://link.springer.com/article/10.1057/s41267-017-0107-7 Accessed on 10.8.2020
Know more about UniqueSubmission’s other writing services:
