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Strategic Management - Advantage & Disadvantage

   

Added on  2021-02-19

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STRATEGICMANAGEMENT
Strategic Management - Advantage & Disadvantage_1
MAIN BODY1 Advantage and disadvantage of firm expansion. AdvantagesExporting helps to give the knowledge of local market of different country.Franchising helps to eliminate or reduce the risk of exposer in the overseas market(Ansoff and et.al., 2018).Joint ventures helps to create third party or the organization at internation platform andhelp to gain more profit internationally.Intel is example of wholly own subsidiaries as its building in semiconductor plants overseas,appropriate knowledge of country helped intel. DisadvantagesDisadvantage of exporting is that it has limited ability to fulfil their customer's demand. In the franchising, multinational firm only get portion of revenue rather than entirerevenue. Cultural differences of the different country may create problem to joint venture in itsmarketing strategies.Wholly own subsidiaries are risky and expensive mode of expansion of business. 2 Four factors in Porter's diamond Factor condition — This factor includes the skilled human power, infrastructure of the companyas according to that country. Advantage of these is to help in communication and makingstrategies. For example, land, minerals and communication and stable banking system ofcountry.Demand condition — This includes the strategies to fulfil the demand of the target costumerswho demand highly specific and sophisticated goods of that country by providing services andgoods.Supporting and related industry — Supporting and related industry help the firm, ininternational market by exchanging the ideas and strategies, with correspond to the suppliers and
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