Evaluating Business Level Strategy and FDI in Kuwait Auto Industry

This report examines the business-level strategy within Kuwait's automobile sector, highlighting the significance of knowledge creation and assimilation in today's competitive landscape. It delves into the application of Porter's Diamond Model to assess Kuwait's national competitiveness in the automotive industry, emphasizing factors such as factor conditions, demand conditions, firm structure, and related supporting industries. The report also explores the role of foreign direct investment (FDI) in stimulating economic expansion and fostering a favorable environment for local industries. Furthermore, it suggests government policies focused on optimum resource utilization, research and development, infrastructure improvements, and workforce training to attract and retain FDI, ultimately enhancing the profitability and competitive advantage of companies operating in Kuwait's automobile market. The importance of policy network approach is also discussed for managing the capacity and relations of companies.

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.
In this paper the emphasis will be given on the automobile sector in Kuwait. It can be seen that it
is well known sector in the market. The paper will take into consideration Porter diamond model
and also focus will be given on how to attract and retain the foreign direct investment in the
country.
It can be analyzed that Kuwait is considered as one of the best sector in automobile industry. In
this it can be stated that the companies can easily attain growth at the time of implementing the
overall activities in Kuwait. There are many advantages that can help the company to achieve
success in the competitive market. It can be seen that Kuwait has proper transportation and also
the distribution policies which can help to market the products and services in the competitive
market. Kuwait companies are always considered as an international platform in which the
companies are willing to invest for long time (Westeren et al., 2018).
There are companies who are focusing on investing money in the foreign countries so that it can
be easy to attain the competitive advantage. Foreign direct investment is also considered as the
platform through which it can be easy to monitor and control the ownership in the activities of
the company in one country and by the company which is situated in another country. It can be
stated from the important foreign portfolio that the activities have the direct control which is
necessary to be maintained. Globalization is also considered the factor that can impact the
companies and foreign direct investment is considered as the important factor that can help to
compete with the competitors on the international platform (Fang et al., 2018).
FDI is also considered to stimulate the target country economic expansion and also the working
environment is created in favor so that it can be easy for the local industries and investors to
attain success in the competitive market. The FDI is also taken into consideration as it is
considered as the platform that can help the investors to create and improve the companies who
are focusing on grabbing the new opportunities in the market. This can help to enhance the
overall purchasing power and can also boost the overall economic criteria. It is suggested that the
companies should emphasize on taking into consideration FDI so that it can be easy to grab the
target market and also it will help to enhance the overall profitability in the competitive market.
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Business level strategy
By maintaining the process of retaining and attracting the foreign direct investment it can be seen
that companies can benefit and can enhance the revenue on the international platform. The
government should emphasize on considering the strategy formulation so that it can be simple to
attract and retain the foreign direct investment. To achieve success it can be seen that
government should be involved in the activities and also there should be proper foreign direct
investment in Kuwait. Also, it is important for the managers to focus on facilitating the overall
involvement of the third party. It can be stated that unique and proper investment climate should
be generated by the countries for attracting and retaining the FDI. It can be seen that reform and
policies also have an important role as it can help in maintaining the overall activities (Phillips
and Moutinho,2017).
Porter diamond model
It is one of the important models that can help to focus on the competitive market on the global
platform. It can be seen that this model can help in maintaining the overall structure with the
national competitiveness. There are various factors which are related to this model.
Factor condition
It is one of the factor that can help in focusing on the manufacturing and production and take into
consideration natural resources and labors. It can be stated that automobile sector requires trained
and skilled employees so that it can be easy for them to manage the activities. Also by having
proper skill labor it can be simple to attain the competitive advantage in the market. The main
aim is to focus on considering and retain the companies so that it can be easy to maintain the
overall process of investment in the market. It will also help to enhance the FDI in the particular
nation (Smit, 2010).
Demand conditions
It is related with the size and nature of the market. In this the focus is given on analyzing the
need of the customers on the national and international platform. This can also help in focusing
on proper decisions which will help to maintain success in the automobile industry.
Firm structure, strategy and rivalry
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Business level strategy
It can be seen that distribution and promotional activities are considered by the small retailers in
the country. It is important for the country to focus on maintaining the dynamic structure. In this
the automobile companies are focusing on growing and it can help to attract the customers. By
having proper structure it can be simple for the company to maintain the competitive advantage
and it will also help to motivate the employees to give their best towards the activities which are
assigned to them in the workplace (Fainshmidt, Smith and Judge, 2016).
Related and supporting industries
It can be stated that research and development is considered as one of the important factor and it
also affect the entire growth of the company. It can be seen that Kuwait emphasizes on
considering the overall structure which will help to accomplish goals and objectives in the
market.
So, it can be stated that porter diamond model helps in managing the competition level prevailing
in the market. Through this model, it can be simple to focus on identification and evaluation of
the elements that can help to create the benefits on the national level. It has been seen that it can
also help in maintaining the overall strategies and policies which are considered to measure the
overall strategy considered by the company (Kiggundu and DeGhetto, 2015).
Policies that should be considered by the government
It can be stated that the four policies that should be considered by the government are related to
optimum utilization of the resources. It is important to focus on optimum utilization of the
resources so that it can help in maintaining the overall level of competition in the market. It is
important for the government to generate the new ways and strategies as it can help in grabbing
the market share in the competitive market. It can be seen that optimum utilization of the
resources can be done by emphasizing on the overall financial position of the company.
The next policy that should be considered by Kuwait government that should emphasize on the
research and development team so that it can be simple to maintain the FDI in the country. Also,
the change in infrastructure can result in maintaining the overall sale of the automobile products
and it can help in enhancing the overall FDI capability in the international platform. Training and
development should also be there so that it can be easy to manage the skills and overall workers
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Business level strategy
on the international platform. The skilled and innovative team can assist the company to focus on
managing the overall products and services of the customers on the global platform
(Wonglimpiyarat, 2015).
Also it can be seen that it is important for the Kuwait government to focus on using the latest
technology and resources so that good image can be maintained in the market. Innovative
technology can help to boost the overall working pattern of the employees in the automobile
industry. It is important to consider the policies so that it can be easy to enhance the overall
profits in the competitive market (Akaeze and Akaeze, 2017).
It can been seen that government should emphasize on managing the overall policy network
approach so that it can be easy to boost the overall development of the company in the
competitive market. Policy network approach should also focus on managing the overall policies
and approach which can maintain the overall relations of the companies with the use of the
resources. The policy network approach should be considered by the government so that it can be
simple to manage the overall capacity on the overall platform of the automobile industry. This
will also help to manage the overall activities of the company which will increase the overall
profitability of the company in the competitive market (Burns, 2017).
By focusing on the porter diamond model the company emphasizes on analyzing the elements
that can help to enhance the benefits on the national platform. So, the policies and strategies can
help to consider and measure the overall strategies implemented in the market. It can help in
managing the overall activities of the automobile industry and can also boost the overall profits
in the competitive market.
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Business level strategy
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