Business Level Strategy: Attracting FDI in Kuwait Transportation

This report analyzes the business level strategy of the Kuwait transportation industry, focusing on attracting and retaining Foreign Direct Investment (FDI). It examines the competitive landscape, emphasizing the importance of knowledge creation and national roles in a changing economic environment. The report uses Porter's Diamond of National Advantage to assess factors impacting FDI, considering factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. It highlights the need for skilled employees, local product competitiveness, and supportive industries. The report also identifies key government policies for fostering a competitive transportation sector, including policy network approaches, science and technology councils, and research and development initiatives. The conclusion underscores the importance of innovative policies for maintaining competitiveness in the Kuwait market.

Running head: Business level strategy
Business level strategy

Business level strategy
The fundamental of competition has shifted significantly to the creation and
assimilation of knowledge hence, role of the nation has grown.
It can be seen that with the changes that take place in the economic factors is due to the
competition level in the market. Transportation industry will be taken into consideration for this
task. So, the answers will be given by considering the Kuwait market.
Answer 1
It can be stated that transportation sector in Kuwait have proper policies related to transportation
and also it helps the companies to consider the competitive advantage prevailing in the market. It
attracts and retains FDI so that it can be easy for the industries to grow in the market. The main
of the paper is to focus on the factors which are responsible and required to attract and retain the
foreign direct investment. So, Porter’s diamond of national advantage is considered to consider
the factors which are impacting the FDI in the Kuwait market. To achieve this it is important to
compete with the competitors present in the market or with the competitive international
investment. It can also been seen that there is a need for the Kuwait companies to focus on
growing and competing against the companies which are in the market (Kiggundu and DeGhetto,
2015).
There are many international organizations employing the people and it can be analyzed that
without FDI it is not possible for the companies that have the direct connection with the jobs.
FDI can be considered as the concept in which the interest of the business is in one country and
also the investment is made in the business located in another country. It can be seen that FDI is
related with the investment that helps to control the ownership of the business located in the one
country by the specific entity which is located in the another country (Phillips and Moutinho,
2017). So, it can also be considered as the foreign portfolio investment which focuses on the
direct control of the activities.
Diamond of national advantage
Diamond theory of national advantage was introduced by Michael Porter. In this model, it can
be stated that the feature of the home country important at the time of focusing on the presence in
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Business level strategy
the international platform. The Diamond of national advantage gives emphasis on the industrial
success on the global economy.
Factor conditions
The transportation industry focuses on considering the employees who have proper knowledge
of the activities so that growth can be attained. It can be stated that factor conditions are the
considered by the companies and also by the industries in the nation. These factors take into
consideration the factors related to manufacturing and production. In relation to the Kuwait
market it can be seen that there is a need of the employees who have proper knowledge of the
activities. With this, it can be simple for the companies to grow in the market. It can also be
analyzed that the factor related to production requires the skill employees so that activities can be
managed in proper manner (Fang et al., 2018).
Demand conditions
These conditions will help to increase competitiveness in context to the local products which are
supplied in the market It has been investigated that when there is local product with the huge
supply and demand in the foreign market, then in the case it is important to focus on bring
improvisation in the overall activities of the foreign market. The demand conditions can also be
related to the size of the overall product demand in the domestic market.
Related and Supporting industries
It is evaluated that local supporting industries have proper functioning and also the companies
considers proper innovation and cost effectiveness. It can be seen that R&D affect the overall
ranking which also impact the overall mission and vision of the company. It also emphasizes on
R&D which is important in the transportation industry in Kuwait. Also, it can be analyzed that
nonexistence of the supplier can affect the working pattern of the company. If the suppliers who
are local are competitive then it will help to maintain the overall cost effectiveness (Lucato,
Vieira and Filho, 2015).
Firm strategy, structure and rivalry
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Business level strategy
It has been analyzed that Kuwait government also focuses on maintaining the dynamic structure
so that growth can be attained in the market. The structure of the organization should be flat so
that the overall operations of industry can be managed effectively. It is important that local
conditions impacted the overall operations of the industry in the home country. Also the
agreement has helped to minimize the overall cost of the import so that exports can be improved
in a proper manner. Also, the country emphasizes on maintaining the good structure so that it can
be simple to attract and retain the maximum foreign companies who are investing in the country.
The transportation organizations help to attract the customers on the global platform (Westeren
et al., 2018).
So, by analyzing the overall factors, it can be concluded that porter diamond model can assist in
maintaining the rivalry on the international platform. By emphasizing on this model, it can be
stated that transportation industry can consider various benefits related to foreign market as it can
help in considering the growth in the market.
Attracting and retaining FDI
Kuwait market can easily retain the FDI by emphasizing on the economic framework. There are
various factors which will be selected by the investors at the time of investing in any country.
The factors are related to general security environment and also with the legal and regulatory
process which should be maintained. It can be seen that the investors are focusing on investing
in the next three years and the country is also one the third platform. Also the focus is given on
the five priorities to attract and retain the FDI. The five priorities or the areas are related to food,
agro, infrastructure and tourism (Krugman, 2017).
Answer 2
Four basic policies considered by the government
The transportation industry is considered as one of the largest industry in Kuwait. Also, the
competitive advantage can be related to focus on considering the specific products which can
help in meeting the need of domestic and foreign needs. It can be seen that there are basic
policies which should be considered so that competitive advantage can be maintained in the
competitive market. It is important that government should focus on the policies so that it can be
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Business level strategy
easy to maintain the transportation sector and to attract FDI so that it can be easy to maintain the
overall economy (Smit, 2010).
The strategy is related with forums in which there are problems that should be resolved by the
companies so that In house capacity can be maintained. This is considered as the way that can
help to connect with the people from one location to the other. The producers will also locate the
users or the customers. Also to consider the innovative approach, it is important to have online
and offline hubs so that it can be easy to consider the creative solution. It is important that there
should be open industrial forums so that it can be easy for the industry to manage in the overall
efforts (Harding, 2017).
The policy network approach states that the resources, strategies and also values are different.
Also, it helps to maintain the innovative and open relationship by focusing on exchanging the
own technology and resources. It has been considered that the government should emphasize on
the policy network approach so that strong image can be maintained in the mind of the customers
on the global platform. This policy network approach can help to maintain the relations and also
it boost the overall efficiency in the transportation sector.
The government should also focus on managing the science and technology council and
committee for the leaders from the industry of the Kuwait. The leaders of the industry should
also promote the innovation technologies by considering the solutions. It is important for the
government to consult with the companies so that it can be easy to achieve growth and also it
will help to create the jobs in the particular industry sector. These centers will enhance the
overall competitiveness that can assist in the roadmaps and structures. There should be proper
principles and guidelines that can help the business to achieve growth in the competitive market.
Research and development is also considered as one of the strategy that can help the companies
to maintain their image in the competitive market. Innovative technology can also help the
transportation industry to differentiate the products from the competitors. Also, it is important for
the Kuwait government to focus on considering the latest technology and resources so that good
image can be maintained in the international market. There are various rules and policies that can
affect the overall productivity and targets of the industry on the global platform
(Wonglimpiyarat, 2015).
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Conclusion
It is important to consider the innovative policies so that it can be easy for the industry to
compete in the Kuwait market. So, it can be concluded that porter diamond model has an
important role in managing the overall rivals and also the benefits in the global platform.
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