1. Describe standardization, format wars, and how standardization can lead to a format war?
Standardization is a process where set of standards are implemented and streamline it to create a generalized process. It helps maintain compatibility, safety and quality. When there is a competition between 2 similar formats within the same market space, it is called Format wars. Standard wars are also called as Format wars because standardization can lead to companies to creating similar products to compete within the same market place.
2. Once standardization occurs, how does the industry benefit?
Standardization can lead to lower transaction costs and improve savings structure for individual businesses. It could increase the competition within …show more content…
During a format war, describe how competition occurs and how a price war can take shape.
Competition between two companies with products of the same format within the same market place is called a Format war. Quality matters the most for these companies since they are competing for the same market space and customers. That will be their differentiating factor for the customers. Companies can increase the price of the product based on the quality factor and create a competitive advantage resulting in a price war. Airline industries compete everyday over flight ticket prices.
4. Define first and second movers. How do these two entities interact within and industry. And who learns what as he industry takes shape?
Companies that enter the industry or market space first, they are called as First movers. These companies enter a niche market and build a customer based for their products. Other companies observe the market trends, create similar products with differentiating factors and then enter the same market place following the bigger companies. These companies are called Second movers. The advantages differ based on the offerings and the market space they are part of.
Chapter …show more content…
Companies that grow in their size start loosing their per unit capital. Companies decide to go international/global to target countries with low labor costs to focus on their economy to grow operations and R&D. Phone companies have been moving their manufacturing to offshore companies like China and India to lower their manufacturing labor cost, invest more into innovation and operations across the globe and still manage to sell their products at a higher price maintaining their competitive advantage.
3. Describe the main strategies available to an organization going global. Describe why each strategy may be chosen.
Following are the global strategies:
a. International Strategy: Companies concentrate more in their own home market but and maintain the competitive advantage. Although their concentration is local to their geographical location, they move their manufacturing to international markets to reduce the costs.
b. Multinational Strategy: In the strategy companies are equally involved in international market as well local. Their global presence is bigger than the companies focused on international strategy and business including customer based is stronger.
c. Global Strategy: A strategy in which companies treat the world as one market for all its product and supplies is called a global strategy.
4. What are the advantages and disadvantages of the different entry modes a company
Standardization is a process where set of standards are implemented and streamline it to create a generalized process. It helps maintain compatibility, safety and quality. When there is a competition between 2 similar formats within the same market space, it is called Format wars. Standard wars are also called as Format wars because standardization can lead to companies to creating similar products to compete within the same market place.
2. Once standardization occurs, how does the industry benefit?
Standardization can lead to lower transaction costs and improve savings structure for individual businesses. It could increase the competition within …show more content…
During a format war, describe how competition occurs and how a price war can take shape.
Competition between two companies with products of the same format within the same market place is called a Format war. Quality matters the most for these companies since they are competing for the same market space and customers. That will be their differentiating factor for the customers. Companies can increase the price of the product based on the quality factor and create a competitive advantage resulting in a price war. Airline industries compete everyday over flight ticket prices.
4. Define first and second movers. How do these two entities interact within and industry. And who learns what as he industry takes shape?
Companies that enter the industry or market space first, they are called as First movers. These companies enter a niche market and build a customer based for their products. Other companies observe the market trends, create similar products with differentiating factors and then enter the same market place following the bigger companies. These companies are called Second movers. The advantages differ based on the offerings and the market space they are part of.
Chapter …show more content…
Companies that grow in their size start loosing their per unit capital. Companies decide to go international/global to target countries with low labor costs to focus on their economy to grow operations and R&D. Phone companies have been moving their manufacturing to offshore companies like China and India to lower their manufacturing labor cost, invest more into innovation and operations across the globe and still manage to sell their products at a higher price maintaining their competitive advantage.
3. Describe the main strategies available to an organization going global. Describe why each strategy may be chosen.
Following are the global strategies:
a. International Strategy: Companies concentrate more in their own home market but and maintain the competitive advantage. Although their concentration is local to their geographical location, they move their manufacturing to international markets to reduce the costs.
b. Multinational Strategy: In the strategy companies are equally involved in international market as well local. Their global presence is bigger than the companies focused on international strategy and business including customer based is stronger.
c. Global Strategy: A strategy in which companies treat the world as one market for all its product and supplies is called a global strategy.
4. What are the advantages and disadvantages of the different entry modes a company