FDI in Kuwait: A Business Level Strategy Analysis Using Porter Model

This report analyzes the business level strategy within Kuwait's food industry, utilizing Porter's Diamond model to assess the factors influencing foreign direct investment (FDI). It examines how conditions, demand, firm structure, and related industries impact the competitive landscape. The analysis highlights the importance of skilled workforce, infrastructure, and research and development in attracting and retaining FDI. Furthermore, the report suggests policies the Kuwaiti government should consider, such as fostering network approaches, investing in research and development, and clarifying regulatory policies to enhance the food sector's competitiveness and overall economic contribution. The document emphasizes that Porter's diamond model helps in attaining competitive advantage. Desklib is a platform where you can find similar documents.

Running head: Business level strategy
Business level strategy

Business level strategy
Introduction
The food industry is considered as one of the largest company in Kuwait. In this paper the
emphasis will be given on the Kuwait in which the discussion will be made on the porter
diamond model which can help to attract and retain the foreign direct investment in the country.
Porter Diamond model of Kuwait
It can be analyzed that food industry in Kuwait is considered as the largest sector. The Kuwait
industry is shaped by focusing on various factors related to technology and also the investment
factors. It has been seen that as there is growth in the tourism sector, the impact can also been
seen on the food sector of the country. By managing the activities in Kuwait the company can
achieve growth and can also enhance the overall profitability level. There are many activities
which can help the companies to focus on their particular goals and objectives. The companies
located in Kuwait always emphasize on the international platform so that it can be easy to
manage the entire investment in context to the goods and services (Westeren et al., 2018).
Kuwait is considered as the places where it can be easy for the companies to expand their
market share and also their can easily develop their services or the products in the competitive
market. There are large companies who are focusing on investing in the foreign countries so that
it can be easy to achieve the competitive advantage and it can also help to focus on the given
objectives and goals which are set by the company in the market (Byun, Lee and Kim, 2016).
FDI is considered as the investment which emphasizes on proper monitoring and managing the
ownership in the company. In this the activities of the company are managed in one country and
the ownership is related with the other country. Also, it can be stated that globalization plays a
great role which can affect the companies and in relation with FDI, it plays an important role so
that it can be easy for them to survive in the competitive market. FDI also emphasizes on the
target country related to expansion in the economy and it helps to maintain the working
environment and it also offers various advantages to the local sector ( Fainshmidt, Smith and
Judge, 2016).
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Business level strategy
It can be stated that foreign direct investment also emphasizes on the new employment and also
enhance the overall opportunities for the country. The foreign direct investment can also help in
earning income and can maintain the purchasing power which will boost the overall economy. It
has been seen that it is important for the companies to emphasize on foreign direct investment so
that it can be easy to focus on the target market and it will also help in enhancing the overall
profitability of the company (Intriligator, 2017).
It can be analyzed that by focusing on attracting the large market share, the companies can take
into consideration the tax advantage and can increase the overall revenue and returns in the
international market. It is important for the government to emphasize on strategy formulation
which are conducive and can help in retaining the FDI. To achieve goals, the government should
focus on considering the marketing strategy that can benefit the foreign direct investment in
Kuwait as the factor that can help to reduce the level of pressure. Also the effective climate can
help to maintain and retain the FDI. Reforms and policies also have an important role in
managing the activities (Gong, 2015).
Porter Diamond Model
This model also plays an important role that can help to understand and evaluate the overall level
of competition on the global platform. It has been seen that porter diamond model focuses on
maintaining the overall competitive advantage in the market. The porter diamond for the Kuwait
food industry can be considered by focusing on the following factors.
Factors conditions
It can be stated that the factor related to manufacturing focuses on the natural resources and also
on the technology. The food sector should consider trained employees so that activities can be
conducted in the smooth manner in Kuwait. Also, to earn more revenue it can be seen that focus
is given on maintaining the overall structure. The company also attained the competitive
advantage by considering the skilled workforce as it can help in achieving growth on the
international platform. The main aim is to attract and retain the companies for making the
investment in the particular country. It will also help in enhancing and bring improvisation in the
FDI of the nation. So, this will help in maintaining the activities of the company. In the food
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Business level strategy
sector it is important to have proper team so that it can be easy to compete with the competitors
in the market (Alenezi et al., 2017).
Demand conditions
It is related with the size and nature of the local need for the products and services in the market.
It has been seen that high demand and requirement for the customers focuses on the national and
international platform. The overall demand can help in maintaining the decisions so that it can be
easy to attain success in the competitive market. The demand of the food sector is high which
also helps in maintaining the customer base in the international market. By having good
infrastructure and economy the companies took interest in investing. It has given positive impact
on the entire working pattern of the company.
Firm structure and rivalry
It can be seen that distributional and promotional activities are managed by the small retailers in
the market. To maintain it, it is important for the companies to emphasize on maintaining the
overall investment policies.
Related and supporting industries
In the food sector it is important to focus on the research and development so that it can be easy
to introduce those products which satisfy the customer requirements. So, it can be stated that
porter diamond model helps in managing the overall competition level on the international
platform. It can also help in managing the overall operations of the company in the market
(Manuel, Al-Hamadi and Qureshi, 2015).
Policies that should be considered by the government
The policies that should be considered by the government are many but four policies that can
assist in minimizing and increasing the capacity of the food sector.
It has been seen that government should emphasize on the approach related to network so that it
can be easy to maintain the image in the market. Also, policy network approach considers and
states that the resources and the strategies are not same. So, it is important to focus on the policy
approach so that it can be easy to focus on innovation and open relations. This approach can help
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Business level strategy
the government to focus on gathering and maintain the relations according to the specific policy
process. By emphasizing on this approach, it can be easy for the government to enhance the
efficiency and also the overall capacity on the international platform (Huggins and Izushi, 2015).
It can be evaluated that Kuwait has considered as the economic power and also the food sector
can consider the benefits which can help to maintain the economic conditions. The food sector
also considers the trends and needs of the Kuwait and also focused on implementing the changes
according to them. So, the government should emphasize on the policies and strategies which
can help to focus on the need of the consumers on the global platform. It can also help to focus
on the competition level and also the government should focus on generating the ideas and
strategies so that proper utilization can take place of the resources (Alasseri et al., 2017).
The next policy is related to the Kuwait government in which it is important to emphasize on the
research and development team so that it can be easy to boost the overall level of FDI in the
country. It is also important to focus on the changes of the infrastructure so that the demand of
the food sector can be enhanced.
This is also one of the strategies that should be considered and it relates with the use of the latest
technology and resources that can help to boost the image on the international platform. It has
been seen that innovative technology can assist the food sector to focus on differentiating the
products from the competitors. There are also various policies and rules that are not clear and it
is important to clear that policy so that it can be easy to maintain the overall performance in the
competitive market. It is recommended that if laws and policies are not specified then it would
be difficult for the company to survive in the competitive market. It is necessary to focus on
considering all the policies so that it can be easy to maintain the quality of the food sector. It will
also help in enhancing the overall profits in the competitive market (Wonglimpiyarat, 2015).
Conclusion
So, it can be stated that porter diamond model is considered as the best model which can help the
company to attain the competitive advantage.
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Business level strategy
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