Global and International Business

Added on - 28 May 2020

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Running Head: GLOBAL BUSINESS CONTEXTS 1Global and International BusinessContexts: Myanmar Mobile Industry
GLOBAL BUSINESS CONTEXTS2Table of ContentsIntroduction......................................................................................................................................3Part 1: Porter’s National Diamond Analysis...................................................................................3Part 2: Marketing Entry Strategy.....................................................................................................8Part 3: Contemporary Management Issues....................................................................................11Conclusion.....................................................................................................................................14References......................................................................................................................................15
GLOBAL BUSINESS CONTEXTS3IntroductionTelecommunication industry in Myanmar has been changed intensely within past two years andit has enabled millions of people to get connected and increased the subscriber rate. In the pastquarter, the world included 87 million new mobile users, from which approximately 6% is fromMyanmar that made this country fourth fastest developing mobile market in the world(Heijmans, 2014). There are some top players in Myanmar mobile industry, so there is toughcompetition in the industry. Thus, the Myanmar Mobile industry is very much profitable and it isattracting new players to enter in the industry and operate their business in the country. Foroperating business in this country, it is very important to understand the external factors andmarket situations in addition to industry’s attractiveness (Trautwein, 2015).For evaluating these market conditions and trends, this report includes Porter’s NationalDiamond Analysis, which assists in analyzing the attractiveness of Myanmar mobile industry. Itfocuses on a profitable market entry strategy that can be used, while expanding business in thisindustry. The companies can use Foreign Direct Investment (FDI) for entering in this mobileindustry. Furthermore, the report discusses limitations and benefits of FDI, if any company usesthis strategy to enter in the country. In the third part of report, it emphasizes on differentmanagement issues, which can be confronted by any organization, while entering in MyanmarMobile Industry for operating its business activities.Part 1: Porter’s National Diamond AnalysisThe Porter’s National Diamond model is strategic model that is given by Michael Porter. Thismodel is also known as Porter’s Diamond Theory of National Advantage that was introduced tounderstand the competitive advantage that a country possesses because of some specific factors.Moreover, it helps to understand that how the government can perform its tasks as catalysts toenhance the strategic position of nation global competitive business environment. Porter’sNational Diamond Analysis assists the organizations, which are operating business in industry,so that they can collect the information about its effective factors and market trends (Fainshmidt,Smith, & Judge, 2016). Regarding this model, it can be said that it is an economic model, whichmeasures the competitive advantage that a nation or a particular region may have.
GLOBAL BUSINESS CONTEXTS4Figure1: Porter's National Diamond ModelOn the basis of characteristics of domestic country, it has been possible to analyze the globalsuccess of a firm.There are six elements, which are used to assess the market for a company, are stated below;Demand conditionsFactor conditionsGovernmentFactor Input ConditionsSupporting and related industriesFirm structure, strategy and competitionTo analyze the Myanmar mobile industry, some of these factors are applied and discussed below;Demand ConditionsDemand condition is one of the most important dimensions of National Diamond Analysis, givenby Porter. If a domestic market for a specific product or services is larger than an internationalmarket, response of a domestic company is to give more attention in capturing the foreign marketshare by delivering the products overseas. It leads to understand the competitive advantage forthat country and domestic companies (Jaiswal, 2014). The domestic mobile industry of Myanmaris very demanding, because people are actively using social media and internet applications. It
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