Business level Strategy and Generic Strategies

Running head: BUSINESS LEVEL STRATEGY AND GENERIC STRATEGIES
Business level Strategy and Generic Strategies
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1BUSINESS LEVEL STRATEGY AND GENERIC STRATEGIES
Table of Contents
1. Recommending and discussing five policies to protect and support the local companies in
Kuwait..............................................................................................................................................2
a. Restriction of Foreign Direct Investment................................................................................2
b. Open-door policy.....................................................................................................................3
c. Participation of the International Monetary Fund (IMF).........................................................3
d. Import Tariffs...........................................................................................................................4
e. Employment and labour policies.............................................................................................4
2. Suggesting and critically discussing four strategies that can enhance the capacity of firms in
Kuwait to succeed in global markets...............................................................................................5
Subcontracting.............................................................................................................................5
Demand conditions......................................................................................................................6
Supporting industries...................................................................................................................6
Firm strategy, rivalry and structure.............................................................................................6
Reference List..................................................................................................................................8

2BUSINESS LEVEL STRATEGY AND GENERIC STRATEGIES
1. Recommending and discussing five policies to protect and support the local companies in
Kuwait
Kuwait is the fourth richest country based on per capita in the world as the GDP per
capita of Kuwait touched to $69,700 in 2017 (Kennedy 2016). The inflation rate in Kuwait is
2.5% and the unemployment rate in Kuwait was 2.1% in the year 2017. Most of the industries in
Kuwait are associated with petrochemicals, petroleum, shipbuilding, cement and food processing
and desalination and construction materials. Kuwait scores 62.2 in Economic Freedom and it is
the 81st freest economy in 2018 (Edris 2017). The competitive advantage of a country mainly
rests on the cheap labour and it is the ability of the nation to grow easily.
a. Restriction of Foreign Direct Investment
Kuwait government continued to encourage foreign direct investment with the
implementation of the laws of FDI. In Kuwait; the oil revenue has been declined and the
government is trying to diversify the economy; therefore, the government is trying to increase
the foreign direct investment by taking numbers of steps. Therefore, the local companies may
face the issue of competitive challenges from the foreign companies. The government has taken
the decision to allow the 100% FDI in foreign ownership in some of the industries; power, water,
water treatment and communications, IT, hospitals and insurance (Moore 2017). However,
Kuwait government has taken the decision of limitation of foreign control in some of the sections
and Right to Private Ownership and Establishment has been imposed. The foreign companies
cannot impose investment in the sectors of extraction of crude oil, natural gas, manufacture of
coke, manufacture of the fertilizers, real estate, public administration and defence and
investigation. In Kuwait, the government has provided the help through limiting the foreign