International Strategic Management-2

This document discusses the competitive environment of the car-sharing industry, the value chain model for SEAT's 'Minimό', various modes of entry for international entry, and a critical reflection on SEAT's example of creating shared value (CSV).

International Strategic
Management-2

Table of Contents
INTRODUCTION...........................................................................................................................3
Critical analyse the competitive environment of the car-sharing industry in context to chosen
city..........................................................................................................................................3
Value Chain model to identify which of SEAT’s internal value-adding activities will be most
relevant in supporting SEAT to launch the ‘Minimό’ into your chosen city.........................5
Critical evaluation of the various modes of entry in context to the international entry of the
selected organisation..............................................................................................................8
Critical reflection in context to the of SEAT’s 'Minimό' example as creating shared value
(CSV)....................................................................................................................................11
CONCLUSION.............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
International business is the process of targeting the international market and selling of
the business services and product'sproducts to the customers (Buckley, Enderwick, and Cross,
2018). Through this organisationorganizations can meet the needs of international customers and
develop their brand value internationally. In order toTo develop and grow in the international
market organisationorganization have effectively use theused international management
strategies such as market analysis, the study of the competitive market environment, and so on.
SEAT is the auto-mobile an automobile manufacturing company its head office is in the
Martorell, Spain. Currently organisation have, the organization has developed thea new model of
the auto-mobile product that is SEAT ‘Minimό', this is the all -electric vehicle develop within
the combination of best of motorcycle and car. Purpose fr the sharesshared mobility services. In
thisThis report study ofstudies the competitive business environment in context to the selected
city for marketing and entrance of the product. Such as SEAT what to enter in tointo the
Manchester auto-mobile market for more salesales and promotion of the product'sproducts. So in
this report different competitive environmental forces and value chain analysis isare going to be
done in context to the selected organisationorganization and city. Various modes of the entry
along with the reflective analysis isare going to be done in this report.
Critical analyseCritically analyze the competitive environment of the car-sharing industry in
context to the chosen city
Porter's 5-Forces model
This is an effective market and external environment force analysis tool which helps to
analyseanalyze the different competition of company in context to the selected area and target
market. Basically it involveIt involves the analysis and evaluation of the power of competitive
rivals, then suppliers power, customers power, threat of substitute, and new entry's. With in the
aid of these model organisationmodels, organizations can develop the appropriate market
penetration strategies (Cherunilam, 2020).
Competitive rivals- This primary force of the competitive environment which
influencethat influences the business strategies. StrengthThe strength and effectiveness of the
rival hashave to be analyse in orderanalyzed to effectively enter in the target market. Such in
context to the entry of SEAT ‘Minimό' into the Manchester they have to first analyseanalyze

the rivals power of the rival of Manchester. There is thea medium-low amount of the rivals in
Manchester in context to the SEAT ‘Minimό' as this is the unique model of auto-mobile product
provided by the SEAT only. So this there is lower competition ofamong rivals due to the
uniqueness of the product and the company can lunch this product atin Manchester in order to
satisfy the more customers with their services (Hales, and Mclarney, 2017).
SuppliersSuppliers' power- This the most importimportant element of the market which
has to be analyseanalyzed before entering into the new market. As it influenceinfluences the
costing of productproducts due to the variant cost of suppliers for assets of the product
development and supply. In context to the SEAT suppliers burgeoning power is low due to the
appropriate availability resource'sof resources and numbers of suppliers with inwithin the car-
sharing market of Manchester. Auto-mobileThe automobile industry is the biggest filedfield so
in context to this there are different numbers of suppliers are present for each and every
assetsasset of the SEAT ‘Minimό' manufacturing.
CustomersCustomers' power- Customers are the key aspects of the business
who'swhose satisfaction is important in order to get success and higher growth along with the
increased brand value. burgeoning power of the customers areis higher in most of the business
case due to the availability of higher competitive provider but in context to this company product
customers burgeoning power is medium due to the single provider of this product is SEAT and
higher importance of the customerscustomer's satisfaction for organisation.the organization. In
the Manchester, there isare lower numbers of smellier service and product providerproviders in
the selected city so that organisationorganization can effectively enter in tointo the market
without the threat of burgeoning.
ThreatThe threat of substitutesubstitutes- All products and services are developed by
the companies to satisfy some selective needs of the customers. So that in context to the selective
case of the product that specific need of the customers which is targeted by the company is
travelling with intraveling within the help of an electric vehicle. This helps to reduce the
emission of pollutants and operation costs of an electric car-sharing bywith the help of a battery
swap system whichthat innovatively managemanages the charging of the vehicle. Servicing of
this product is competitive, innovative and effective but there is the huge substitute for travailing
such as the car, bike, bus, train and so on. OrganisationOrganizations have to effectively
manage this force with in the aid of their strength and inventiveness.

ThreatThe threat of new entry's- The present business industries and the market is
having huge opportunity's for the development of new and similar services with more
modification. Due to the highly developed technological facility'sfacilities and support.
ThreatThe threat of the new entry in Manchester for SEAT ‘Minimό medium due to the faculties
of new Morden technology's'technology's (Chim-Miki, and Batista-Canino, 2018). So
organisationthe organization can manage thisthese factors by managing their uniqueness and
effectiveness in comparison to others.
As per chosen country, the car sharing has athe best output in order to provide the services with
the number of customers. In this, the strategy is used to be followed by the car -sharing industry
is too competitive because of number ofsome competitors in the market. Moreover, the Minimo
is used for low-cost competition in the market. As per this, they have fixed suppliersuppliers and
buyers in the market. In this, the buyers may be feasible and flexible as per depends on the
service viability. Moreover, the supplier is limited due to the exact number of populations. In
this, the direct buyers are also involved in order to promote the car -sharing industry in all over
the organisationalorganizational scenario for the profit and productivity.
Environmental forces Values in context to selected city and
organisationorganization
Competitive rivalry Medium
TreatThe threat of new entry Medium
Buyer power Medium
Suppliers power Low
TreatThreat of substitute High
Value Chain model to identify which of SEAT’s internal value-adding activities will be most
relevant in supporting SEAT to launch the ‘Minimό’ into your chosen city
Lunching and promotion of the product's isproducts are depending on various functions
and activities of the organisationorganization and in order to improve or effectively use those

crucial activities company have to analyseanalyze and evaluate the various activities and
functions of organisation withinthe organization with the help of the value chain model
(Carraher, 2018).
Value Chain model
This is the most important model use for the management and evaluation of the important
operational and other functional activities of the organisationorganization in order to
manufacture and sale the products. This model is use by the organisations in context to the
analysis of their product development activities in order to evaluate the strength and weakness of
the operational and functional activities which can be further improve by the management in
order to meet competitive edges of the market. This model involves the analysis of product
development activities values and cost. So that it can be further modified by the organisation to
make more profit and effective achievements. Value chain model is comprising of two major
groups of activities such as the primary activities and supportive activities and this involves
whole activities of product development from raw material to the complete product. Both group
of activities are explained below in context to the selected organisation.
Figure 1 value chain diagram of Minimo

As this value chain model helps to analyse and evaluate the organisation product
development and management activities in order to make it more effective there is the brief
evaluation of SEAT’s 'Minimό’ manufacturing and marketing activities (Cong, and et. al., 2020).
Primary activities- These group of the activities are basically related to the action of
product development and lunch. Such as the sourcing and allocation of the resources along with
the operational activities for manufacturing and marketing sales for the selling and promotion of
product's (Simatupang, Piboonrungroj, and Williams, 2017).
Inbound logistic- This is the activity which involves the sourcing and collection of the
product manufacturing assets or resources from the different suppliers. So in context to the
SEAT inbound logistic activities is related to the sourcing of auto-mobile assets and materials
which is use by the manufacturers for manufacturing of SEAT’s 'Minimό'. This is valuable for
the production but that not directivity related to the lunching of product into the market. But this
can be important process in context to the development of good suppliers in order to reduce the
suppliers burgeoning charges. So, in order to enter into the Manchester organisation, have to
focus on the more supper’s relationship building.
Operations- This is the activity which involves the action of workers for the
development of product from the raw materials and resources. In context to the selected
organisation and their strategies to get enter into the Manchester market for product lunching,
company have to be qualitative and unique from the others to sustain in the market.
Outbound logistic- Once the product is manufactured then then next activity is logistic
out-bonding of the product's such as the delivery and transportation process. In context to the
SEAT’s 'Minimό' lunching this activity is not important that much.
Marketing and sale – This are the most important and valuable activity of the
organisation which should be effective in order to lunch the new products and services. This
activity is involving the various actions of the organisation and marketer of the company in order
to represent, promote and sale the products. In context to the SEAT’s 'Minimό' lunching this is
the most important and relevant activity. SEAT can make their marketing and sale activities
more interactive in order to effectively achieve the product lunch objectives of organisation.
Such as the customers and sale development throughout the Manchester.
Services- This is another important group of the primary activities which involves the
action of organisation for customers support in context to the product handling, management and

guarantees. In context to the SEAT’s 'Minimό lunching this is the most important activity
which should be plan according to the product facilities and its management guidelines (Tosello,
and et. al., 2019). Organisation have to offer the best product servicing policy's along with the
maximum year of guarantee.
Supportive activities
This group of the activities is involving different supportive activities and action plan for
the effective management and accomplishment of primary activities. There are the four
important supportive activities application which improve the efficiency of primary activities
(Fischer, and Himme, 2017).
Firm infrastructure- This is the activity involving management of different departments
and structure within the organisation, such as quality control, planning, financial, and accounting
this is important for primary activity accomplishment. In context to the SEAT’s 'Minimό
lunching financial system of the firm infrastructure is important which can support the lunching
marketing activities within the distribution of appropriate money.
Human resource's management- This is the important supportive activity which
involves the different task and action of the HR manager to recruit, select and train the staff or
workers for the effective performance in context to the primary activities. So, in prospect to
SEAT product lunching this is important in indirect way.
Technology development- This is the activity which involves the evaluation of new
developing technologies from the market in order to implement those for more effective
operations and function of the organisation task (Jo, Dongsung and Boyoung, 2018). This helps
to be innovative in terms of product development and lunching.
Procurement- This is the activity which involves the action of managers to find out the
best suppliers for the allocation of cost-effective resources and product assets.
In context to the objective of organization to lunch SEAT’s 'Minimό' in Manchester the
most relevant value-adding activities is Marketing and sale, Services, Technology development
all these three activities will be more relevant for product lunching with in interactive guarantees
and innovative promotional techniques.

Critical evaluation of the various modes of entry in context to the international entry of the
selected organisation
International business and trading of the company is can be done by the implementation
and application of the most effective international marketing and penetration strategies (Glavas,
Mathews, and Bianchi, 2017). So, in context to the international trading one of the most
important function is the select the most appropriate mode of the entry on the basis of market
forces and type of the business and prod cut. There is the brief explanation of the different mode
of international entry is given below in context to the SEAT.
Franchising- This is the most effective and usual mode of the international penetration
through which an organisation can get enter into the new international market. This is the type of
entry mode in which organisation can give their product selling and strategic management rights
to the internation business men who want develop their franchisee business in order to earn more
profit. Most importantly that is cost effective because company do not need to invest on
manufacturing assets and management assets, they just have to provide products and
management strategic support through which franchiser can effectively promote the product and
increase the sale of organisation along with the image in exchange of some selective profit
sharing (Iddy, and Alon, 2019).
Joint ventures- That is the mode of business expansion and entry into the new
international market. Under which two or more business operators can get tied to share their
resources as a partner. Such for the international entry of organisation company can make their
hand forward for the partnership with person of that target market. This is the mode through
which organisation can develop partnership with the business organisation of the target market
with in the objective of resource sharing in context to accomplish the particular task. This is the
technique which set within the agreement of selective time period. So, for that partnership and
selective time period organisation have to equally share their resources and profit. This can help
the organisation to effectively get stable in the new market within the help of partners resources
and information (Debellis, and et. al., 2020).
Licensing- This is other international market entry mode different from all other modes
as it involves, function of organisation get permission for the international operating in the form
of licence. Once the company get licence from that target market of foreign country then they
can easily make the use of resources and assets of that nation for production and management of

their products. In order to get this organisation have invest huge money and time for long period
documentation process of Licensing. But once the company get License then they can operate
their business into that target market by shaving the extra cost of joint-venture sharing, export
taxes and so on.
Piggybacking- This the process of international entry and selling of the products, by the
aid of this international entry method two international company's works together for the cross
selling of their products and services. Two organisation partners of different company help each
other to trade their products in that target market. This effective process of international
penetration by it can risky in context to trust for loyalty of partner (Kruesi, Kim, and
Hemmington, 2017).
Exporting- One of the most effective and useful mode of international entry is exporting
of the products and services in to the international market. This process helps to sale their
products into the selective international market within the help of trading techniques and law.
Organisation just have to pay appropriate trading tax charges and build the strong sellers and
suppliers of the product into the international market. Where company can export their products
for retailing within the help of international showrooms and shops of retail.
In context to the SEAT’s 'Minimό' effective lunching and organisation entry into the
Manchester some of the most relevant mode of international entry is explain with in the aid of
table.
Mode of the entry Advantage Disadvantages
Exporting Easiest way of direct
international selling of the
products and services. Low-
cost investment.
Lower information of the
market environment. Chases of
the loss due to the
unawareness.
Franchising Helpful in the selling of
product to new international
customers with in appropriate
strategies. Lower management
and manufacturing cost.
Chases of the negtive impact
on customers and value
reduction of the organisation
due to the inappropriate
management of the leading
company strategies by the

franchiser.
Joint ventures Effective for interactive
promotion and lunching of the
product's due to the
availability of all essential
market information for
marketing and sale (Chaurasia,
and et. al., 2020).
Higher cost process as
organisation have to share
their profit.
Licensing Best process due to the
requirement of one-time
investment for license. After
that organisation can use
resources at relevant price.
Time taking process.
Piggybacking Lower cost process Higher chases of cheating and
loss.
So the Join-venture mode along with the export is best mode for the entering in to the
Manchester for lunching of the SEAT’s 'Minimό'.
Critical reflection in context to the of SEAT’s 'Minimό' example as creating shared value (CSV)
As per the view of Michael E. (2011) point of view creating shared value is the most
important concept which should be adopt by every business's organisation in order to address the
social issues along with their challenges with in the aid of their selective action and operations.
So majorly this is the model or strategy which should be use by the organisation in context to
their objective for being goof organisation (Deng, and Zhang, 2018). This is divided into three
part first is business opportunities, second is social issues analysis and third is effective
implementation of organisation expertise (de los Reyes Jr, Scholz, 2017). Basically, this is the
consent which involves the analysis of business opportunities from social needs and issues of the
peoples, then satisfaction of the society by the help of accurate business partitions and expertises
in order to develop appropriate product or solution.

SEAT ‘Minimό’ is the best example of CSV accomplish by the SEAT manufacturing
company. This organisation has developed and evaluated the opportunity for new product
development from the study of social issues such as the higher fuel price of vehicles, problem of
the higher pollutant emission. So, from these social problem’s organisation have evaluated the
opportunity of developing new innovative char-sharing product which can be helpful in the zero-
pollution emission and zero fuel charges. This SEAT ‘Minimό’ is CSV product due to its
effective facilities and function which reduce the social problem of pollution emission, fuel
chargers. Along with this it further helps to reduce the investment on charging point. All these
values creating function of the product is achieve by the effective use of technological assets and
expertises such as the use of integrated battery swap system and other technological assets.
Opportunity grab by the organization was 'compact urban mobility' where they aimed to make
cars as the second more appropriate way of connecting peoples. In context to which they have
developed the ‘Minimό’ approach which is chargeable and log lasting battery along with very
compact and interactive structure.
There are a number of examples which is stated about the business and the social and
environmental values may be created. Moreover, this is very critical to understand the concept of
csv which is show so in the car sharing industry. Moreover, the social impact of the car sharing
industry in a country are used to create interactive approach towards the services in order to
reach any destination. Whereas, the environmental value is also accessible because they have a
fixed zone of environment to travel. Moreover, the help to provide sharing facilities in the cabs
and also helpful for the customer to get the right in a low cost which help to release more
efficiency on the environment to better understand the car sharing cabs are surrounded in the
roads and traffic as per the personal user of any car is used to take the cab for their regular work
then and the environment is usually not harm due to this approach.
CONCLUSION
From the above study it has been concluded that for effective entry and lunching into the
international market organisation have to use the best internation marketing strategies. Such as
the use of Porter's 5-Forces model for analysis of competitive forces which can be applicable to
the strategic development of market penetration and product lunching. In order to use the
appropriate value -adding activities for product lunching organisation have to use value chain
model and for the product lunching marketing and sale is most relevant activity. In order to

lunch and enter into the international market there are the various mode which should be use
according to the type of business and products. In context to the product lunching join-venture is
the best. Organisation business objectives has to be comes under the creating shared value,
according to which they have to develop the social problem solving products and services.
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