Global Business Strategies and Analysis

This assignment requires students to analyze the strategies of a chosen firm operating in the global market. Students must apply Porter's Diamond model to evaluate the competitive advantages and disadvantages faced by the firm, taking into account factors such as government policy, infrastructure, factor conditions, related and supporting industries, and domestic rivalry. The analysis should aim to identify the key drivers of success for the firm in its chosen market and provide recommendations for future strategic direction.

Global Policy

Table of Contents
Topic 2- The level of National Competitive Advantage within your target investment location....1
INTRODUCTION...........................................................................................................................1
PORTER DIAMOND STRUCTURE..............................................................................................1
PORTER FIVE FORCESBrown, K. , 2014....................................................................................3
ADVANTAGES..............................................................................................................................4
DEMANDS......................................................................................................................................5
TOOLS.............................................................................................................................................6
CONCERNS....................................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

Topic 2- The level of National Competitive Advantage within your target
investment location
INTRODUCTION
Through increasing corporate strategies it has been evaluated that company operates in a
global context. Here, Sainsbury has been undertaken which is a MNC operating in UK and
therefore, firm possess effective competitive advantage through improving the brand image of
firm among competitors (Brown, 2014). However, if any business does not focus upon importing
or exporting directly, they need to focus upon international business environment which involves
buyers, sellers and new entrants so that best results can be attained. Further, it is essential for
company to identify its target investment location in relation to enhance its market and satisfy
the needs of numerous customers. Through implementing the Michael Porter Diamond model it
helps in analysing that why certain nations are more competitive than others as well as certain
industries are more competitive than others (Kilian and Murphy, 2014). Management of
Sainsbury aims to invest within India so that they can gain competitive advantage to overcome
rivals. Selecting target investment location assists in proving useful for businesses so that they
can attract wide range of customers and identify their needs in order to raise the performance of
firm in market.
PORTER DIAMOND STRUCTURE
Here, the diamond structure affects the four different factors that lead to a national
competitive advantage which are as follows-
 Factor conditions- It can be assessed that each and every country creates its own
important factors such as skilled workers, innovative technology that helps in enhancing
the varied factors which helps in improving the country's image in market. It is essential
for firm to identify the different factors of the location where they are planning to invest
i.e. India so that national competitive advantage can be attained (Pindyck, 2013).
However, company might face certain disadvantages within factors of production force
innovation as in adverse conditions i.e. labor shortages or scarce raw materials, firms are
being forced to innovate new methods and thus such innovative leads to national
competitive advantage.
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 Demand conditions- It assesses that when the market for a specific product is larger
locally than in foreign markets. However, the local companies pay more attention to that
product as compared to the foreign companies. Hence, it provides competitive advantage
for businesses in order to operate in Indian market and enhance brand image in market
(Cukierman, 2013). Further, Sainsbury aims to demand local market that leads firm to
gain national advantage. Therefore, it is essential for businesses to identify the trend
setting local market which assists local market that helps firm to anticipate global trends
and enhance the market share of firm.
 Related and supporting industries- It assesses that Sainsbury faces competition from
local supporting industries as they are very competitive in nature and thus businesses
focuses upon being more cost effective and gain innovative inputs. Further, it also
strengthens the firm's image when the suppliers themselves are strong global competitors
and Sainsbury faces tough competition within market (Sellar and Lingard, 2013).
 Firm strategy, structure and rivalry- Here, it identifies that local conditions affects the
firm strategy therefore, it is essential for businesses to tend to be hierarchical. Sainsbury
needs to carry out its operations on the basis of effective strategy and structure which
aims them to determine in which type of industries, country will flourish (McCauley and
et. al., 2015). Also, rivals needs to be identified so that industry could be made attracted.
They also prefer to move forward the business and give tough competition to rivals.
However, it also assesses that the local rival forces assists firm to move beyond and
enhance the brand image of firm in market.
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Illustration 1: Porter
Diamond model
(Source: Gupta and et. al., 2013)
PORTER FIVE FORCESBrown, K. , 2014
Here, it helps in analysing the overall industry structure which is as crucial in regard to
gain effective strategic decision making. It also assists in shaping industry competition which are
as follows- Competitive rivalry- It is high as competitive forces helps in examining how intense the
competitive currently is in the marketplace which helps in evaluating the number of
existing rivals and their capability of carrying out the task (Milanovic, 2013). Sainbury
faces tough competition from rivals as there are various competitors such as Asda, Tesco
are available and gives tough competition to each other in order to obtain high market
share. Bargaining power of suppliers- It is low as there are several suppliers available therefore
they need to have control over its prices otherwise it would lower the profitability of firm
in market. It can be assessed that businesses are in better position when there are wide
number of suppliers available (Hollifield and et. al., 2014). Therefore, it is essential for
Sainsbury to identify several numbers of suppliers so that they can switch over to others
in order to save cost.
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 Bargaining power of buyers- It is high as there are various firms available in market from
which individual could purchase the product. Customers have the power to purchase the
products when there are various competitors available in regard to sell the products to
consumers. Hence, it is essential for Sainsbury to provide varied range of products or
services that helps in satisfying the needs of consumers (Percival and et. al., 2013). Threat of new entrants- It is low as it requires huge investment to start the retail
businesses. However, it is being easier for businesses to identify the competitors and then
raise the performance of firm in market in order to improve the market share. Further,
barriers to entry involve absolute cost advantages, input access and economies of scale
etc. so that company could be recognized effectively and efficiently (Rosati and Scott,
2013).
 Threat of substitute products or services- It is high as there are varied substitutes
available with consumers that helps them to switch from firm's products or services to
that of competitor. Sainsbury needs to identify how many competitors are present and
examine the ability to lower the cost so that sales can be enhanced (Lingard, Martino and
Rezai-Rashti, 2013).
ADVANTAGES
It can be evaluated that main advantage of implementing porter model assesses that
Sainsbury enhances its market share and identify the target market where firm can invest.
Through adopting market development strategy and identify the location i.e. India for investment
helps in increasing the firm's profitability margin (Axelrod and Van Deveer, 2014). Following
are the different advantages obtained by Sainsbury in terms of gaining competitive advantage so
that firm can invest in new target location i.e. India. Expand geographically- One of the main advantage of business is entering new market is
that company aims to expand geographically and improves the business image in market.
Further, it also benefits Sainsbury in terms of gaining advantage it could diversify
product offering and thus provide appropriate quality products for consumers in Indian
market. Thus, it would help firm to enhance its sales and profitability so that success can
be attained (Gray, 2015). Appeal to different customer segments- Further, it is one of the effective advantage that
helps Sainsbury to identify the appeal to different customer segments and provide them
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the best quality goods in regard to raise the sales in market. For instance, when thinking
of raising the investment in new market i.e. India (Pindyck, 2013). Marketers of firm
need to identify the needs of customer segments and then provide them appropriate
product quality so that desired quality goods could be sold to them. Attaining long term vision- Company is required to develop long term vision and thus for
that they need to invest in new target market so that desired goals could be attained.
Sainbsury is required to develop its long term vision which is one of the main benefits in
terms of identifying the target investment location and thus gain national competitive
advantage (Gupta and et. al., 2013).
 Develop new skills and competencies- Another advantage is that Sainsbury is required to
hire skilled professionals who are able to manage the firm's operations in market and thus
make crucial decision so that new skills and competencies can be attained. However, in
order to gain competitive advantage, firm is required to develop new skills and
competencies they are required to fulfil the same and thus results into performing the
desired actions in an effective manner (McCauley and et. al. 2015).
DEMANDS
It can be assessed that firm needs to identify the demands of its target market and then
provide the same products or services to them so that they can gain customer satisfaction. Hence,
Sainsbury is required to undertake effective strategies in terms of carrying out market research so
that they can evaluate the demand, needs and wants of target market so that they can influence
buyers towards firm (Milanovic, 2013). However, through identifying the demands of customers
from the new target location it would result firm in enhancing the market share and size. It is the
best way through which firm could improve the performance and raise its productivity so that
best results can be attained. There are different demands of consumers which needs to be
identified and fulfilled so that best actions could be attained. However, fulfilling the demands of
consumers within the new target market aims to enhance the customer base and size of firm.
Furthermore, identifying the demands of consumers it assists in fulfilling their needs and
thus obtain satisfaction among them. Sainsbury management requires assessing the needs of
target market where firm is planning to expand its operations and then implement the same so
that goals could be fulfilled (Kilian and Murphy, 2014). Also, assessing the demand aims to fulfil
the needs of consumers and then provide them appropriate products or services so that target
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audience could be satisfied. Thus, through identify the needs of target market it helps in
improving the business performance and thus raise the market share so that best results can be
attained, therefore, sales and profitability could be raised. Also, it is essential for firm to improve
the national competitive advantage within target investment location and thus raise the
profitability of business.
Through carrying out effective research it would focus upon identifying the needs of
target market and then evaluate the best results so that demands could be fulfilled effectively.
Also, it is crucial for them to undertake effective strategy and thus results into carrying out the
targets so that competition can be overcome (Brown, 2014). Thus, evaluating the demands by
Sainsbury;s team it would focus upon raising the market share and profitability condition.
TOOLS
Following is the PESTLE analysis- Political- It can be assessed that government forms varied number of laws and
regulations in regard to carry out business activities. Therefore, it is essential for them to
ascertain the market trends and take initiatives so that government needs to control the
actions and directly affects the business performance (Cukierman, 2013). Economical- Further, if the economic situation within the country is strong then it would
affect the firm and thus it is essential for retail industry to assess the market conditions
and purchasing power of customers before making any crucial decisions. Through
identifying such factors it would result into improving the performance of retail industry
and thus sale and profit also decreases (McCauley and et. al. 2015). Social factors- It assesses that the recent change in lifestyle and attitude of people affects
the retail industry. However, change in buying behaviour of consumers affects the retail
businesses and therefore, firm needs to undertake effective choices so that they can attract
customers towards firm. However, there are different social norms such as income,
distribution, demographics etc. affects the retail operations of firm in market (Gupta and
et. al., 2013). Technological factors- Further, it is also one of effective factor that requires updation
from time to time. However, if it is not being updated then products would no longer
satisfying the needs of customers. Therefore, retail industries are required to update its
technology and bring innovation within firm so that they can bring new changes within
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retail products and enhance customer satisfaction. Adopting new technology helps firm
to improve its retail products and thus attract target customers so that best results can be
attained (Milanovic, 2013). Environmental factors- It also affects the environment as it damages due to pollution
such as plastic waste. Therefore, it is essential for retail firms to overcome such changes
and safeguard the environment in order to protect it. Retail businesses are required to
carry out the environmental laws and regulations in regard to protect the individuals and
does not affect their health (Percival and et. al., 2013).
 Legal factors- Further, there are different legal factors that needs to be followed by retail
businesses so that it helps them to protect the environment. Also, it is essential for
company to undertake effective strategies and actions so that best results can be attained.
Therefore, it is essential for retail businesses that has affects the individuals and other
businesses (Lingard, Martino and Rezai-Rashti, 2013).
CONCERNS
It can be evaluated that Sainsbury requires assessing the main concern in relation to
identify the target market where the firm needs to make investment. Also, it is crucial for them to
improve the firm's performance and thus raise the profitability margin through increasing market
share. Further, it is essential for them to fulfil the demand of target customers and thus improve
the performance so that significant concerns could be improved (Axelrod and Van Deveer,
2014). Moreover, appropriate outcomes needs to be focused in regard to identify the main
concerns and then improve the business performance so that appropriate outcomes could be
attained.
Moreover, it is significant for Sainsbury to evaluate the major concerns in relation to
overcome the issues and then improve the market share of firm in market. Company aims to
improve the brand image of firm and then raise their profitability so that market share and
revenue can be raised. It is also essential for Sainsbury to undertake effective concerns regarding
the investment in target location i.e. India and then evaluate the performance of firm in market so
that desired goals can be attained (Gray, 2015). Thus, all such concerns are required to be
acknowledged by company in relation to that they can improve their target performance and
attain desired targets. Main concern of firm is to identify the needs and wants of target market
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and then provide them appropriate products or services so that best results can be attained in the
form of customer satisfaction.
CONCLUSION
It can be conclude from the study that Sainsbury aims to identify the new target market
for investment and enhance the profitability ratio of firm. Thus, it is essential for them to
improve the firm's performance and gain national competitive advantage. Through developing
the brand image firm aims to improve the sales and market share. Therefore, it is crucial for them
to overcome rivals and then enhance target investment location. Thus, gaining competitive
advantage within target investment location aids in improving firm's market share so that success
can be attained.
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REFERENCES
Books and Journals
Axelrod, R.S. and Van Deveer, S.D. Eds., 2014. The global environment: institutions, law, and
policy. CQ Press.
Brown, K. , 2014. Global environmental change I: A social turn for resilience?.Progress in
Human Geography.38(1). pp.107-117.
Cukierman, A. , 2013. Monetary policy and institutions before, during, and after the global
financial crisis.Journal of Financial Stability.9(3). pp.373-384.
Gray, J. , 2015. False dawn: The delusions of global capitalism. Granta Books.
Gupta, S.,and et. al., 2013. Global policy review of antiretroviral therapy eligibility criteria for
treatment and prevention of HIV and tuberculosis in adults, pregnant women, and serodis
cordant couples. JAIDS Journal of Acquired Immune Deficiency Syndromes.62(3).
pp.e87-e97.
Hollifield, J. and et. al., 2014. Controlling immigration: A global perspective. Stanford
University Press.
Kilian, L. and Murphy, D.P., 2014. The role of inventories and speculative trading in the global
market for crude oil. Journal of Applied Econometrics.29(3). pp.454-478.
Lingard, B., Martino, W. and Rezai-Rashti, G., 2013. Testing regimes, accountabilities and
education policy: Commensurate global and national developments.
McCauley, R.N., and et. al. 2015. Global dollar credit: links to US monetary policy and
leverage. Economic Policy.30(82). pp.187-229.
Milanovic, B., 2013. Global income inequality in numbers: In history and now .Global
policy.4(2). pp.198-208.
Percival, R.V . and et. al., 2013. Environmental regulation: Law, science, and policy. Wolters
Kluwer Law & Business.
Pindyck, R.S. , 2013. Climate change policy: What do the models tell us?.Journal of Economic
Literature.51(3). pp.860-872.
Rosati, J. A. and Scott, J.M., 2013. Cengage Advantage Books: The Politics of United States
Foreign Policy. Cengage Learning.
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Sellar, S. and Lingard, B. , 2013. Looking East: Shanghai, PISA 2009 and the reconstitution of
reference societies in the global education policy field. Comparative Education,.49(4).
pp.464-485.
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