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IOCL's Global Integration and Competitive Advantage

   

Added on  2019-12-04

5 Pages1102 Words150 ViewsType: 150
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IOCL (Indian oil corporation limited)1
IOCL's Global Integration and Competitive Advantage_1

Introduction Global integration is used by the organization to attain economic efficiency on a globalscale. In other words, it refers to coordination between different value-chain activities acrosscountries to achieve production efficiency, synergy, and cross-fertilization. IOCL (Indian oilcorporation limited) is the largest commercial enterprise of India. The report herewith is going todiscuss about the extent to which firm exploit economies of scale and scope with this productline while using integration-responsiveness framework. Further, it examines locations of theIOCL activities with respect to this product line and reason of choosing such location. The extent to which a firm exploit economies of scale and scope with this product lineunder integration-responsiveness frameworkThe use of Global Integration framework facilitates production firms to examine andexplain strategic and organizational dilemmas. The model helps in deciding why firm is going toselect product line and the location to attain economics of scale. In Global integration the firmfocuses on strategic coordination to global customers Global competitors, investment Intensity toattain economics of scale. The organization is facing huge pressure for cost reduction sourcing ofraw materials. Local responsiveness is all about using unique resources and capabilities whichare available to firm in the local market (Integration-Responsiveness Framework &Transnational Strategy in Global Expansion. 2016). The business is going to asses the diversityof local customer needs and focus of making differences in distribution channels. IOCL (Indianoil corporation limited) is using multinational strategy for the production line in which most ofthe production facilities are in geographic locations. It can be said that the pressure for localresponsiveness is high and the pressure from local responsiveness is also low. The organizationis focused to meet specific needs of buyers within individual countries (Annual report: IOCL).The firm in focused to place its strategies well in the competitive environment, and thedistribution structure (Rothaermel, 2015). Being an operates India’s Largest network of crude &product pipelines, it is focused to clients with increasing length.Locations of the IOCL activities with respect to this product line and how it contributes tocompetitive advantage2
IOCL's Global Integration and Competitive Advantage_2

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