Competitive Strategies of Global Businesses: A Detailed Report

This report provides a comprehensive analysis of competitive strategies employed by various global businesses. It begins by examining the global and socio-cultural elements influencing Starbucks, followed by an in-depth look at Google's diversification strategies, including product and acquisition strategies, and its revenue strategy through online advertising. The report then explores the rationale behind LVMH's acquisitions, specifically focusing on the acquisition of Tiffany & Co. It also discusses strategic alliance approaches, using Samsung as a case study, and analyzes Zara's competitive behavior responses, emphasizing innovation, flexibility, and brand positioning. Finally, the report examines leadership qualities, using QANTAS Airways as an example, highlighting the importance of influence, risk-taking, decisive action, and conflict resolution in effective leadership. The report concludes by summarizing the key findings and emphasizing the significance of competitive strategies in achieving business success.

Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
QUESTION 1...................................................................................................................................1
Global and socio-culture elements of the general environment..................................................1
QUESTION 2...................................................................................................................................2
Level of diversification strategies ..............................................................................................2
QUESTION 3...................................................................................................................................3
What has been the rational for LVMH acquisition. ...................................................................3
QUESTION 4...................................................................................................................................3

approaches for strategic alliance.................................................................................................3
QUESTION 5...................................................................................................................................4
competitive behaviour response..................................................................................................4
QUESTION 6...................................................................................................................................5
Leadership...................................................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Competitive strategy is described as long-term plan of a company which is made to gain
competitive advantage over its competitors within industry. It has been made with the motive of
developing defensive position in an industry along with generating a high return on investment.
This type of strategy is important when a company is serving in very competitive industry along
with consumer are providing with almost similar products (Kharub, Mor, and Sharma, 2019).
This report is based on the various different strategies which are applied in context to different
companies such as Google, Starbucks, Zara etc. in order to understand the concept and
impotence of such strategies in making organisation successful.
MAIN BODY
QUESTION 1
Global and socio-culture elements of the general environment
Starbucks is a American based multinational chain of coffee house and roastery reserves
with the headquarter in Seattle, Washington. This company operates in over 30,000 locations
across the globe and in more than 70 countries.
A social culture is refers to the combination of social and culture factors as because of the
strong interaction which exist between them (Chou, and. et. al., 2020). This has been focuses on
how adults and peers influence individual learnings. There are various elements of socio-culture
which can have direct influence over Starbucks future.
Changing preference require adaption: This is one of the major socio-culture factor
which can impacts Starbucks and its business decisions is change customer's preferences. What
is popular and fashionable today may not be popular in coming 10 years which can impact the
future of the company. For this a company should conduct a proper research so that product and
services get upgraded as per the customers demand and requirements.
Changing demographics: This is also significant factor that can impact Starbucks future.
For instance markets for coffee and energy drinks may shrink and markets for health products
get increased in future (Cho, and Lee, 2018). Along with this, changes in proportion of genders,
different racial, religious and ethics groups within society can impact the way in which company
does business.
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Gender and racial attitudes: A company interacts with the market and its customer, here
socio-culture factors also has a influence on internal decision making process. Such as changing
gender roles and increasing attention on family life leads to increased respect for maternity and
paternity leaves within organisations. This factor can impact the internal decision making for
policies and rules and way conducting operations of Starbucks. Through which company can
face the challenges and interruptions between the smooth running of business.
QUESTION 2
Level of diversification strategies
Google LLC is an American based multinational technology company which is
specializes in internet related services and products that involves online advertisement
technologies, a search engine, cloud computing, software and hardware.
Diversification is refers to an corporate strategy which is being utilised for entering into new
market, new product and service line while including substantially different skill, technology and
knowledge (Shokuhi and Nabavi Chashmi, 2019). There are various level of diversification that
has been discussed below in context to google:
Product strategy through product and service diversification: Online search is the main
product and service of google which it has been providing to its customers. The company
initially maximize on its internet technology which is began since 1996. it later diversified its
product and services which includes Gmail, google drive and enterprise product such as google
search appliance and online advertisement. Along with online services such as google news,
google translate and google maps. The internet related product and services of google has
ensures the access diverse internet users and make them dependent to certain extent.
Expansion strategy through company and product acquisition: Acquisition is one of the
major strategy for marker entry and to increase market share. This has been used by google as
because this enabled company to expend to different technology based entities (Nguyen and
Adomako, 2020). This has suceddfully expand it business by it several large acquisition such as
it acquires sky box imaging in order to obtain its satellite technology for accuracy and clarity of
google maps. Along with this, it acquire YouTube, DoubleClick, Instagram etc. this help google
to enter into into new market and in encouraging existing market share.
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Revenue strategy through online advertisement: Online advertisement is the basic key
of google this provides a platform google search in which company monetise online search
queries as it allow marketers to buy and place ad spots on search engine result page. Through
which google has increase it revenue that provides growth to the company.
QUESTION 3
What has been the rational for LVMH acquisition.
Moet Hennessy Louis Vuitton commonly known as LVMH, it is an France based
multinational corporation and conglomerate with the headquarter in pairs, France which mainly
sells luxury goods.
LVMH is a French luxury group that has been owns diverse portfolio of 79 luxury brands
in different categories. The company has been continuously expanding in its product line and
region with the support of acquisition in order to become one of the largest luxury conglomerates
across the world. Some of the big brands acquire by the company are Louis Vuitton, Christian
Dior, Fendi and Sephora along with Tiffany. It has acquire luxury jewellery brand Tiffany in
USD 16.2 billion through which LVMH company has get an access to legendary American
luxury jewellery that is as old as 1837. this has been specializes in high-end jewellery,
engagement and designer jewellery. Along with this LMVH also get access to Tiffany
manufacturing facilities and units with its 321 retail stores across the globe. This acquisition
would has provides 8% increase in revenue and 6.7% in operating profit to LMVH. With the
help of this, company ensures its greater market share along with increase in revenue.
QUESTION 4
approaches for strategic alliance
Samsung is a south Korean multinational conglomerate with the headquarter in Samsung
town, Seoul. It is incorporated with numerous affiliated business and most of them are united
under Samsung brand.
Strategic alliances is defined as the agreement between two or ore parties in order to undertake
mutually beneficial project while each remains its independence (Hadinugroho, and. et. al.,
2018). This agreement is less complex and less binding in compare to joint venture in which two
different business pool resources for developing separate business entity. In order achieve
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positive and effective outcomes a company should maintain a good strategic alliance. Some of
the approaches has been discussed below in context to Samsung:
Communicate alliance strategy: For the successful alliance, company should defined and
communicate alliance strategy across the organisation so that they are not inadvertently
duplicated in other parts of the company (Puspitasari and Jie, 2020). With this Samsung can
ensures the effective implementation of strategies for better outcomes.
Develop shared strategy: For the better and effective strategy alliance, Samsung should
understand how the vision, mission, values and strategies of both the companies fir together. So
that they can develop an strategy which is beneficial for both. along with this samsung ensures
proper physical and human resources has to be allocated to the alliance on constant basis so that
it progress faster towards the objective.
QUESTION 5
competitive behaviour response
Zara is a Spanish based multinational apparel retailer which deals in fast fashion and
products includes clothing, accessories, shoes, swimwear, beauty and perfumes. This is know as
world's largest apparel retailer that manages up-to 20 clothing collections in a year.
Competitive behaviour refers to the steps and actions taken by the firm in order to reduce
the competition and to increase market position (Yang, Chiang, and Chen, 2019). generally
competition has been done in order to increase the wealth and strength of the organisation. Zara
has been taken various steps in order to main competitive advantage and to improve market
position which are discussed below:
Stay relevant through innovation: In order to maintain strong competitive advantage,
innovation is one of the major factor which help company in to stand different from the
competitors. Zara is one of the largest apparel retailer that has been manage around 20 clothing
collection in a year. This is the one which set the clothing and fashion trend within the industry.
This build a strong competitive advantage for Zara and improve market position.
Embrace flexibility: Companies which follow fair and flexible work environment are the
most productive one. Zara is having flexible working that help people to achieve a life-work
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balance which is important for the employees retention. With the support of this Zara has
enhance it proficiency and productivity.
Develop a unique brand position and to be consistent: Zara is well established brand
and has strong recognition across the world. This has been still focus on making it more unique
among competitors through launching new styles on a frequent basis. This has maintain its
competitive advantage and market position.
QUESTION 6
Leadership
QANTAS airways limited is the flag carrier of Australia and this is largest airline based
on fleet size, international flights and international destination. This is third largest airline
company after KLM and Avianca.
Leadership is refers to the both research area as well as practical skills which
encompasses the ability of an individual to guide, influence and direct the group people towards
the common goal of the organisation (Pan, and. et. al., 2020). It is also defined as the capacity of
a management to achieve challenging goals, take fast and decision when needed along with,
inspire others so that they can perform at highest level. Having a effective leader within the
organisation is essential for the success of the company, there various traits and characteristics of
the effectieve that have been discussed as under:
Ability to influence: Leadership is all bout influencing individual or group of people. For
influencing others it need building trust with colleagues, focus on understanding their motivation
and need to encourage them so that they can share their opinions. Alan Joyce has inspire their
employees by guiding them in right direction and through providing career opportunities to
grow.
Encourage risk taking and innovation: Experimental is critical to maintain the
competitive advantage of the company. Alan joyce has recognize this ad encourge risk taking
along with innovation within the organisation. With this, employees introduce more new and
creative ideas and more emboldened to test theories as they know creativity is valued in the
organisation. With the support of this Alan Joyce enhanced overall productivity and proficiency
of the company.
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Act decisively: As per the today's scenario business environment is do complex and fast
changing in which leaders need to make a quick strategic decisions (Lee and Jung, 2018). Alan
joyce take the decision as pre the need of situation and stick to it, unless there is a compelling
reason to shift focus. With this company get right direction and effectively accomplish the goals.
Conflict resolution: Conflict is the part of day-to-day routine of the organisation but it
need to be resolve as quickly as it can so that performance remain unaffected. An effective leader
such as Alan Joyce manage and resolve conflicts through prioritizing the areas of conflict so that
positive outcomes can be achieved.
CONCLUSION
As per the above discussion it has been concluded that, competitive strategy the long-
term plan which a company to develop competitive advantage with the industry as to gain
maximum profit. There are sociocultural elements which has a significant impact over the
company's future along with this, diversification strategy which is used by companies in order to
expand business and to enhance market share. Moreover, there more approaches and strategies
that companies adopt in order to gain competitive advantages and to improve market position.
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REFERENCES
Books and Journals
Kharub, M., Mor, R.S. and Sharma, R., 2019. The relationship between cost leadership
competitive strategy and firm performance. Journal of Manufacturing Technology
Management.
Chou, and. et. al., 2020. The critical criteria for innovation entrepreneurship of restaurants:
Considering the interrelationship effect of human capital and competitive strategy a case
study in Taiwan. Journal of Hospitality and Tourism Management, 42, pp.222-234.
Cho, J. and Lee, J., 2018. Internationalization and performance of Korean SMEs: the moderating
role of competitive strategy. Asian Business & Management, 17(2), pp.140-166.
Shokuhi, A. and Nabavi Chashmi, S.A., 2019. Formulation of Bank Melli Iran Marketing
Strategy Based on Porter ‘S Competitive Strategy. Journal of Business-to-Business
Marketing, 26(2), pp.209-215.
Nguyen, N.P. and Adomako, S., 2020. Environmental proactivity, competitive strategy, and
market performance: The mediating role of environmental reputation. Business Strategy
and the Environment.
Hadinugroho, and. et. al., 2018. Leverage, firm value and competitive strategy: evidence from
Indonesia. International Journal of Economic Policy in Emerging Economies, 11(5),
pp.487-508.
Puspitasari, I. and Jie, F., 2020. Making the information technology-business alignment works: a
framework of IT-based competitive strategy. International Journal of Business
Information Systems, 34(1), pp.59-82.
Yang, C.L., Chiang, M.H. and Chen, C.W., 2019. Financial leverage and competitive strategy of
cross-listing firms. Australian Journal of Management, 44(2), pp.306-324.
Pan, and. et. al., 2020. Research on the competitive effect of local government's environmental
expenditure in China. Science of The Total Environment, 718, p.137238.
Lee, M.J. and Jung, J.S., 2018. Competitive Strategy for Paradigm Shift in the Era of the Fourth
Industrial Revolution: Focusing on Business Model Innovation. Indian Journal of Public
Health Research & Development, 9(8).
ONLINE
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What has been the rational for LVMH acquisition [online through]
<https://www.televisory.com/blogs/-/blogs/acquisition-of-tiffany-by-lvmh-an-analysis>
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