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Strategies of Asian Firms in Global Business

   

Added on  2023-01-18

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Running Head: GLOBAL BUSINESS IN THE ASIAN WORLD 1
Strategies that Asian firms have undertaken catch up with firms in
developed economies
Student’s name
Name of the university
Author’s note
Strategies of Asian Firms in Global Business_1

GLOBAL BUSINESS IN THE ASIAN WORLD 2
Assessing the strategies taken
In the current economic times, business operations are more or less
carried out basing on an international perspective. This type of reasoning
therefore gives rise to what is known as the global business entities or
multi-national companies. These types of companies were predominantly
European companies involved in this type of trade but, however this type
of trend has been changing over the past one decade. Asian companies
also known as “the new comers” such as Acer, Samsung, and Hong Leong
group of Singapore and others have been involved actively in this type of
international trade. These companies deal in a variety of items ranging
from building materials, electronics, hotels and many more activities of
international trade. To achieve this level of involvement, these companies
have utilised basically two major strategies. These include the ownership
internationalisation location strategy and the linkage leverage learning
approach (SI Yuefang et al, 2013).
The linkage, leverage and learning method
According to this type of strategy, the Asian late comers to the
global market made quick advancements towards becoming g
international companies. In doing making this move a reality, these
dragon multi nationals took advantage of factors such as leveraging,
global connections, and creation of international linkages. These
processes for example linkages were focused on the acquisition of those
resources that they did not have yet such resources were available
elsewhere. Therefore creating these linkages saved the companies a lot
Strategies of Asian Firms in Global Business_2

GLOBAL BUSINESS IN THE ASIAN WORLD 3
problems such shortage of material and similarly they obtained steady
supply of materials to facilitate their operational activities. For this reason
of internationalising, the existing western firms look at it as a time of stiff
competition whereas the new comers pursue it as an advantage for them
to tap some of its abundant resources (Matthews,2006).
The ownership internationalisation location strategy; based on
internationalising, location, and ownership
Today globalisation is the most important aspect of time in doing
business. When there is free movement and trade, then there is
opportunity to exploit in terms of a wide market for the goods and
services produced. It is such a platform that these dragon multinationals
have utilised to establish themselves on the international business market
as global giants. One of the most pronounced steps made by these Asian
companies is the ability to innovate and come up with new methods of
management and organisation. This type of knowledge is generated by
looking at the way other companies manage their own affairs.
From such kinds of knowledge, they come up with a hybrid of
management methods through which more effective management styles
are formed. Other forms would include strategising in the forms of
innovative ability. By strategising for example these Asian companies
were fully aware of the products on the market and other related
dynamics. For this reason alone therefore, they came up with alternative
ways to compete favourably. In doing this they came up with different
types of technology, new designs of electronic devices, formed teams with
Strategies of Asian Firms in Global Business_3

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