Report on Global and International Business

Added on - 28 May 2020

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UserGlobal andInternationalBusiness Contexts
Global and International Business Contexts1ContentsIntroduction......................................................................................................................................1Part 1................................................................................................................................................1Porter’s National Diamond Model...............................................................................................1Firm strategy and rivalry.........................................................................................................1Factor Conditions.....................................................................................................................2Related and Supporting Industries...........................................................................................3Factor Input Conditions...........................................................................................................3Part 2................................................................................................................................................5Mode of entry..............................................................................................................................5Limitations of Foreign Direct Investment...............................................................................5Advantages and attractiveness of Foreign Direct Investment in Myanmar.............................7Recommendations........................................................................................................................7Part 3................................................................................................................................................9Management issues......................................................................................................................9Conclusion.....................................................................................................................................11References......................................................................................................................................12
Global and International Business Contexts2IntroductionMyanmar is at one of the leading positions in respect with the usage of mobile phones across theglobe. The nation is experiencing huge competition in the mobile industry but on the other handalso fetching the attention of the foreign companies to have business investment. The mobilephone manufacturers are seeking opportunities to have successful business ventures in Myanmaras the market is booming and developing at a rapid rate. To perform business operations inMyanmar there is a need to develop understanding about the market conditions and the marketsituations (Ling, Parekh, Zainudeen and Galpaya, 2017).To perform analysis, one of the mosteffective factors is the diamond model of Porter which is be practiced in the report for analysingthe market attractiveness of Myanmar’s mobile industry. The paper will also have a widediscussion of the modes of entry to perform business in Myanmar for the overseas organisations.There will also be discussed the demerits and the merits associated with the entry mode to beused by the companies to enter in Myanmar. The paper will sum up by focusing upon themanagement issues exoerienced by the organisation while entering into Myanmar andperforming business.Part 1Porter’s National Diamond ModelThe National Diamond model of Porter was developed by renowned theorist Michael Porter andis considered as one of the most effective economic model. It is an analytical tool which has beenpracticed for analysing the industrial competitive environment. The analysis performed supportthe business organisations in fetching the data regarding the market situations and conditions. Italso helps in demonstrating the attractiveness of the market in a specific region. There arebasically four factors which are analysed through the Porter’s Diamond model i.e. the firmstrategy and the rivalry, the factor input conditions, the factor conditions and the related andsupporting industries. Following is the analysis of the Myanmar’s mobile phone industry throughthe lenses of Porter’s National Diamond model:
Global and International Business Contexts3Figure1: Porter's National Diamond ModelFirm strategy and rivalryThere are strong growth and developments found in various areas of the Mobile industry ofMyanmar such as the high use of internet, excess use of social media and increased use of mobilephones. All this has been resulted in offering business opportunities to the mobile phonecompanies. The mobile phone industry of Myanmar has experienced huge growth and now thereis a need of change demanded by the consumers. There has been a strong digital shift whichfluctuate the consumer market demand(Ling, et al., 2017).In 2013, there was fifty percentmobile penetration rate and eighty percent of the mobile phone users take maximum use of thesmartphones (Ho and Chua, 2016). According to the data collected and as per the survey, it wasfound that there were 6-7 percent as the users of Sony, 25.6 percent as the users of iPhone and42.2 percent as the users of Huawei. The data also revealed that the demand for the brands suchas Xiaomi, Oppo and Lenovo are also increasing rapidly in Myanmar (Taguchi & Lar, 2015). Itshows the market condition of Myanmar which means that the individuals are more concernedwith the prices and prefer buying products which are comparatively cheaper or low in prices. Inrespect with consumer behaviour, it has been evaluated that the choice for the products arehighly depended upon the factors such as age and gender of the individuals (Weisbrod, 2015).According to the current market trends, the mobile phone companies provide the customers withtailored products as per the demands and requirements of the individuals of the nation. From theevaluation, it can also conclude that there exists in-tense market competition and rivalry among
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