International Business Strategy: Domino's and Suzuki's Strategies

This essay delves into the realm of international business strategy, emphasizing the importance of strategic planning for managing overseas commercial transactions. It explores the significance of Porter's Diamond Model as a tool for analyzing market competition and assessing global factors influencing business performance. The essay examines how companies such as Domino's Pizza and Suzuki Motor Corporation adapt their strategies to suit different market conditions, comparing home and host location approaches. It highlights the impact of government policies, cultural differences, and consumer preferences on international business operations. The analysis underscores the usefulness of Porter's Diamond Model in identifying competitive advantages and managing business sustainability in a global context. The essay concludes by summarizing the key findings and emphasizing the need for multinational companies to tailor their strategies to both domestic and international markets. The essay provides a comprehensive understanding of the complexities and nuances involved in international business strategy, offering insights into the factors that contribute to success in the global marketplace.

International Business Strategy
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ESSAY
INTRODUCTION
International business strategy is considered as a well structured plan that assist
management for managing diverse commercial transactions associated with overseas business
expansion. Furthermore, it is evaluated that success of overseas business operations is greatly
depending on the international business strategy in which management develops various
activities for attainment of organizational goals such as increase in market share and increase in
profit margin ratio (Beamish, 2013). In this context, different companies are focusing on diverse
range of business norms as per the different factors of international market. International
business strategy plays important role in promotion and growth of company in new market
places. Key purpose of learning is to assess the gape between strategies that companies adopt at
home and host location so as porter's diamond model is evaluated.
MAIN BODY
Porter Diamond Model
As per the study of Kollmann, Enders and Müller (2011) it has found that porter diamond
model is identified as most effective technique that supports company for managing several
aspects associated with market competition while dealing in different nations. The porter
diamond model assists business organizations for managing extra attention on certain specific
factors which can influence the operational activities. In the support of this, it has found that this
model assists manager in evaluation of different global factors that improves international
business performance and competitive advantage in global market. Jifeng (2013) has determined
that the porter diamond model provides significant benefits in the form of selection of an
efficient design of strategies which enhances competitive position of company in new overseas
market. It considers number of global factors that have significant impact on different
management practices of an organization such as economy, social, etc (Lafley and Martin,
2013). By considering this approach, organization can focus on diverse clusters which relates to
the industry through which business entity is able to develop various appropriate strategies as per
requirement of particular market.
The research of Crucini, Kose and Otrok (2011) has found that the management of
organization is able to analyse performance of company with an appropriate manner by
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conducting an detail comparison with other organizations/competitors. In the support of this, it
has examined that porter diamond model is categorized in diverse factors that include factor
conditions, demand conditions, related and supporting industries, firm strategy or structure,
government and chance. In this respect, aurthor further argued that with an assistance of porter
diamond model the business organizations is able to pay extra attention on diverse resources
which are playing important role for managing competitive advantage with the help of different
resources human resource, knowledge, physical, capital resource, etc (Riasi, 2015).
As per the different aspects of Porter diamond model, the management of Domino's Pizza
is focusing while developing different business strategies as per the requirement of food and
beverage industry. Improved focus on these factors has played important role to manage
competitive edge over other companies (Marren, 2012). In this context, it has been analysed that
Domino's Pizza is operating the world so as management has developed various strategies with
reference to various global factors which related food restaurant industry. Therefore, that has
been distinct variations addressed in international business strategies as compared to
management practices that have been adapted by company while dealing with the domestic
market. In this process, business entity has considered different factors like social needs,
economic factors, etc (Welch, Piekkari, Plakoyiannaki and Paavilainen-Mäntymäki, 2011).
Verbeke (2013) has evaluated business entity can easily create better competitive
advantage while dealing in home market with an consideration of demand conditions. In these
conditions the social factors such as change in interest and lifestyle have influenced the
management of Domino's Pizza for bringing number of innovations in food product and services
rendering process without any problem. This is because company is aware about domestic
market conditions. This approach has found effective for assessing competitive advantage over
other competitors. This is because of products of company are better than its competitors. In the
support of this, Zhao (2011) has evaluated that improved consideration of related and supportive
industry factors are providing the great level of assistance for improving market position of
organization. By considering this approach, the administration of Domino's Pizza is able to
production of food production and different business strategies with reference global business
factors and preference of consumers of different nations. This approach has found very effective
in order to reduce the overall cost of overseas business operations and provides cost effective
inputs (Nickols n.d ). It also allows business for carrying significant advancement in different
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business operations in the global context.
In similar way, Suzuki Motor Corporation has applied different kinds of strategies and
management practices while dealing in domestic and international marketplace. In this context,
Kollmann, Enders and Müller (2011) has evaluated that the business structure of Suzuki Motor
Corporation is differ at both locations that reflects that organization is applying different business
strategies and organization operation at both home and host locations. Therefore, management of
Suzuki Motor Corporation design goals and actions plan by considering the business
environment of different market place so as management is able to manage different business
operations with an appropriate manner. For example, Suzuki Motor Corporation is Japanese
company so as company has paid extra attention on high end sports bikes in Japan which
contains more engine power as well as high price (AUTOMOTIVE SECTOR, 2015) . On the
other hand, he business organization has focused on normal bikes range that are having less
engine power and offer high mileage in India as per the interest of citizen of India. This approach
provides better opportunities for business expansion in new market and effective capturing of
market share in new market.
Furthermore, it has been analysed that Government plays most crucial for managing
different business operations and strategy formulation process that leads significant impact on
the competitiveness of business. The study of Beamish (2013) has determined that government
policies lead significant impact on external environment of business firm therefore it is essential
for company for consideration of different government policies during strategies formulation
process as per the requirement of international market. Government interactions at local and
national level is more easier rather than international level. This thing influences Suzuki Motor
Corporation in order to adopt different strategies for international market as compared to
domestic market. This approach has provided significant support in business expansion within
Japan. This is because company has well versed about rules and regulation of local government
and less restrictions (Lafley and Martin, 2013). On the other hand, while entering in Indian
market, management has to establish partnership with the local organization named TVS.
Therefore, it was essential for management of Suzuki Motor Corporation to follow government
norms of India authorities.
Home and host location strategies
It has evaluated that Domino's Pizza has faced significant issues while managing business
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expansion in Japan. This is because there has been significant differences addressed by
management of Domino's Pizza due to change in interest and lifestyle, culture of Japanese people
as compared to US culture. In this regard, Jifeng (2013) has argued that business organizations
are paying extra attention on different strategies while operating in home and host locations. In
this regard, it has been evaluated that the management of Domino's Pizza has also changed in
menu and food product range with reference to Japanese culture which has also provided great
business opportunities and facilitates in meeting sustainability standards. Culture and theme of
restaurants has also been modified by as per the local fast food culture of Japan.
The Domino's Pizza is a US based restaurant chain which is managing business
operations in all over the world. Company applies wide range of business strategies and
operations as per the interest of customers in United States (Crucini, Kose and Otrok, 2011).
Key motive of Domino's Pizza U.S. is to influence perception of consumer for managing
competitive edge over other companies. It is because U.S. stores have equal ratio of visit
regarding U.S. citizens as well as other nations. Furthermore, it has been evaluated that the
menu Domino's Pizza is also different in US market as compared to other nations.
Further, it has been evaluated that Suzuki Motor Corporation is effectively focusing on
global perception while developing a new product range and selection of appropriate marketing
strategy. As per the current market trends, company is focusing extra attention on satisfaction
level of consumers in all over the world (Riasi, 2015) . On the other side, in Japan, management
is focusing on change in interest and lifestyle of consumers that plays important role to level of
satisfaction to domestic customers. For Japanese market, business entity is instantly focusing
continuous innovation and application of excellence and advanced engineering as per the current
trends of Japanese market.
Usefulness of porter diamond model
The porter diamond model is identified as most effective tools for different companies
for managing different international business operations. In this context, the research of Marren
(2012) has stated that with this model the assists management of different business organizations
by determining the fours dimensions of competitiveness within business. For example,
companies has to develop different strategies as per the government policies of both home and
host nations. In this regard, it is necessary for business organization to understand the gape
among government policies so as management can enhance organizational effectiveness.
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The study of Zhao (2011) has evaluated that government policies are creating huge
impact on strategy formulation process in different business organizations. Government policies
related to investment has led great control on investment decision of business entity. Welch,
Piekkari, Plakoyiannaki and Paavilainen-Mäntymäki (2011) has evaluated that by assessing
support of public authorities and external business environment, companies can reduce input
costs and increase profits. In the support of this, it has been evaluated that an improved focus on
supporting industries help managers for assessment of raw materials which is beneficial for
effective competitive advantages. Verbeke (2013) has determined that the business organization
can easily manage sustainability while dealing business operations in home market. On the other
hand, business entity will be able to manage global business environment while operating
business in international market. This approach provides an opportunities for application of
technology, social and other essential factors in business system which can influence work
culture.
CONCLUSION
As per the above study, it can be concluded that multinational companies apply different
strategies for managing business operations in domestic and international market. It is examined
that management considers several factors for formulation of overseas business strategies as per
the current market trends of overseas country. It has been identified that the porter diamond
model has played important for handling different business strategies while operating in global
market.
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REFERENCES
Books and Journals
Beamish, P., 2013. Multinational Joint Ventures in Developing Countries. Routledge.
Crucini, M. J., Kose, M. A. and Otrok, C., 2011. What are the driving forces of international
business cycles?. Review of Economic Dynamics. 14(1). pp.156-175.
Jifeng, M., 2013. Networking capability, new venture performance and entrepreneurial rent.
Journal of Research in Marketing and Entrepreneurship. 15(2). pp.101 - 123.
Kollmann, R., Enders, Z. and Müller, G. J., 2011. Global banking and international business
cycles. European Economic Review. 55(3). pp407-426.
Lafley, A. and Martin, R., 2013. Playing to Win: How Strategy Really Works. Harvard Business
Press.
Marren, P., 2012. The devil's dictionary of business strategy. Journal of Business Strategy. 33(4).
pp.58 – 60.
Riasi, A., 2015. Competitive Advantages of Shadow Banking Industry: An Analysis Using Porter
Diamond Model. Business Management and Strategy. 6(2). pp.15-27.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Welch, C., Piekkari, R., Plakoyiannaki, E. and Paavilainen-Mäntymäki, E., 2011. Theorising
from case studies: Towards a pluralist future for international business research. Journal of
International Business Studies. 42(5). pp.740-762.
Zhao, Z.Y., 2011. A critical analysis of the photovoltaic power industry in China–From diamond
model to gear model. Renewable and Sustainable Energy Reviews. 15(9). pp.4963-4971.
Online
Nickols, F., n.d. Strategy Definitions and Meaning. [pdf]. Available through:
<http://www.nickols.us/strategy_definitions.pdf>. [Accessed on 10th December 2015].
AUTOMOTIVE SECTOR. 2015. [Online]. Available through:<http://www.smmt.co.uk/industry-
topics/uk-automotive-sector/#responsiveTabs1> [Accessed on 10th December 2015].
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