Strategic Management Assignment: University Name, Semester 2

This document presents a comprehensive solution to a Strategic Management assignment, covering key concepts from Chapters 7 and 8. The assignment addresses topics such as standardization, format wars, and the relationship between them, emphasizing their impact on competitive advantage. It further explores the advantages of standardization, including cost reduction and strategic alliances. The analysis delves into the dynamics of first and second movers in the market. Chapter 8 focuses on global expansion, examining the reasons for international market entry, and the benefits companies can derive from it, such as economies of scale. The solution also discusses effective market penetration channels, strategies for global expansion, and various entry modes, including mergers and online channels. References to relevant academic sources are included to support the analysis.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author note

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Table of Contents
Chapter 7....................................................................................................................................1
Answer 1................................................................................................................................1
Answer 2................................................................................................................................1
Answer 3................................................................................................................................2
Answer 4................................................................................................................................2
Chapter 8....................................................................................................................................2
Answer 1................................................................................................................................2
Answer 2................................................................................................................................3
Answer 3................................................................................................................................3
Answer 4................................................................................................................................4
References..................................................................................................................................5

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Chapter 7
Answer 1
Standardization is the process used by the companies to develop, maintain and
promote different type of high standard technologies and processes within the business
organization. Format war on the other hand is stated as a situation in which every company
competes with each other in the market to take up dominance over the other. Standardization
is related to format war because it is only through standard technology and processes a
company can effectively compete in the market with its competitors and succeed in getting
dominance over other companies. Thus, standard technology play vital role in achieving
competitive advantage (Myatt et al. 2014).
Answer 2
Standardization that occurs in the technology and processes of the company have a
beneficial effect on the company. Some of the advantages of standardization a company can
achieve are:
 Help the company to achieve competitive advantage over others
 Helps in reduction of cost of the processes of the organization
 Helps in attracting and retaining good quality suppliers for the company
 Helps in retaining and attracting customer traffic
 Leads of strategic alliances between companies
 Facilitate research and development by the company
 Helps the organization to be well informed about its competitors in the market
 Reduction in inconsistency

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Answer 3
Format war takes place when number of competing companies tries to compete with
each other with the aim of taking dominance over each other. During this process, a war takes
place among these organizations selling similar product to an equivalent group of customers.
However, in the environment of tough competition there can organizations that alter the price
irrespective of competitors and try to attract customer traffic. This in turn influences other
customers to alter their price as well. This leads to a price war in the market where every
company tries to reduce the price in order to capture the market share (Vecchiato 2015).
Answer 4
First mover is the one that enters the market first with the product and has the chance
of getting long-term benefit from the market and will survive for longer period. Second
mover o the other hand refers to the innovation that the first mover takes to improve their
product and service with the aim of gaining maximum market share in the market. Both the
mover interact in the market, as the second one is the innovative version of the first mover. It
is only through initial move of the first person the future innovation takes place (Blanco et al.
2014).
Chapter 8
Answer 1
Company in today’s world aims to expand their business globally in the international
market due to various reasons such as:
 Domestic sales has got saturated than the past and markets are small
 New opportunities and challenges in the international market
 Facilitate brand recognition and expansion

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 Facilitate fast growth that the company does not achieve in the domestic market
 To compete successfully in the industry with fast growing competitors
The company expands due to number of reasons; however, the penetration channel that the
company should use to penetrate in the global market is the online marketing channel such as
social media. This is because social media is expanding very fast worldwide and is the easiest
way to reach the customers sitting globally (Gollnhofer and Turkina 2015).
Answer 2
The company gets the additional benefits from it global expansion by entering an
economy with huge economies of scale. Firstly, it will be able to use the technology and
research and development achievements of the country. Secondly, the company will be able
to charge higher price for the product according to the living standard of the people in that
country. High living standard will help the company to charge premium-pricing strategy in
that country. Thus, the company can gain these benefits by expanding globally from the
economies of scale of other countries (Hill et al. 2014).
Answer 3
The strategies the company can use while planning to expand globally are:
Perform a due diligence of the global market. It is important because it helps in preparing
market segmentation, gap analysis, strength, and weaknesses it might face.
Develop a business plan, as it will help the company to analyze its finance, its risk level and
the estimated revenue it can make.
Product readiness is another strategy as it helps it analyzing the acceptability rate of the
product and the chances of success.

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Answer 4
The company can take entering modes in order to expand globally in other countries
and become successful in it. First strategy is to form a merger with the already existing
company in that industry of other country. This will help the expanding company to know
about the customer trend, the living standard and take advantage of economies of scale of that
acquired company. However, it will also have to solve the diseconomies of scale of the
acquired company. Other strategy is entering through online channel by creating a social
media page for itself. This is because social media usage is increasing drastically and thus
this strategy will be helpful. However, it might happen that social media does not help in
conveying the right message and image of the company in front of the people (Malhotra
2014).

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References
Blanco, M., Engelmann, D., Koch, A.K. and Normann, H.T., 2014. Preferences and beliefs in
a sequential social dilemma: a within-subjects analysis. Games and Economic Behavior, 87,
pp.122-135.
Gollnhofer, J.F. and Turkina, E., 2015. Cultural distance and entry modes: implications for
global expansion strategy. Cross cultural management, 22(1), pp.21-41.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Malhotra, Y., 2014. A Risk Management Framework for Penetration Testing of Global
Banking & Finance Networks VoIP Protocols.
Myatt, L., Redman, C.W., Staff, A.C., Hansson, S., Wilson, M.L., Laivuori, H., Poston, L.
and Roberts, J.M., 2014. Strategy for standardization of preeclampsia research study
design. Hypertension, pp.HYPERTENSIONAHA-113.
Vecchiato, R., 2015. Creating value through foresight: First mover advantages and strategic
agility. Technological Forecasting and Social Change, 101, pp.25-36.