MGT 815: Strategic Management Report on Global Expansion

This report examines the strategic management considerations for Organic Solutions (OS), a household brand in the FMCG sector, as it plans to expand into international markets. The report analyzes strategies for maintaining a competitive advantage, emphasizing innovation, investment in areas of expertise, competitor monitoring, and strategic marketing. It also evaluates the effectiveness of strategic alliances as a global market entry strategy, particularly for a household brand like OS. Furthermore, the report discusses the role of digital marketing, outlining its opportunities and threats, and emphasizes the importance of a multi-country strategy and domestic responsiveness. The assignment provides a comprehensive analysis of the challenges and opportunities OS faces, offering actionable insights for successful global expansion.

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

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Introduction
“Organic Solution” (OS) is a brand that has been introduced to the market by a large firm
in FMCG sector, a few years ago. There products have been quite successful in the niche market
and therefore, the organization is contemplating on the strategies of selling its products to
overseas. Selling the products in the international market requires maintaining the competitive
advantage, which require development of an appropriate strategy that focuses on the customers’
needs and requirements. OS is required to develop appropriate strategies to maintain their
competitive advantage so that they can easily place their foot in the international market.
The essay aims in discussing the appropriate strategies that should be implemented by OS
to maintain the competitive advantage. Entering into a global market might not be easy even if
the company has a huge competitive advantage in their local market. Presence of a strategic
alliance is necessary while entering into global market. The essay provides a comprehensive idea
of the effectiveness of strategic alliance while entering the global markets. In this context, the
competing global strategies are evaluated on basis of the fact that the OS is a house hold brand.
Digital marketing is an essential tool that is used for promoting a product to a global
market (Stone & Woodcock, 2014). Several opportunities can be realized by making use of the
digital network; however, there are various threats associated with digital marketing that are
required to be analyzed as well. The essay further outlines the benefits the OS can achieve by
making use of digital marketing. To ensure success in the global market, it is necessary for the
OS to plan and strategically execute its movement to the global market.
Analysis of Appropriate Strategy for “Organic Solutions”

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Competitive advantage is important for a company’s growth as it distinguishes a
company from its competitors (Wang, 2014). It is a process in which a company create value for
the customers. Therefore, creation and maintaining a competitive advantage is a necessary need
for a company. In order to create a competitive advantage, a company is require to analyze the
business strengths of the competitors along with their weakness to design a strategy of taking
advantage of the weaknesses (Ranjith, 2016).
The key competitive advantage of OS is providing high quality organic products in a
reasonable cost. Since the cost of the organic products sold by OS is reasonable, its products are
popular beyond the niche market as well. In order to ensure that the products offered by OS are
sold in the global the company is required to design effective strategies that can contribute in
maintaining the competitive advantage of the company. Expanding a business to the global
environment requires detailed planning and for OS, the challenge is more significant as the brand
is a household brand. In the following paragraphs, a set of strategies are proposed for OS that can
help the company in retaining their competitive advantage and can further contribute to
expanding their business to the global market.
1. Innovation: OS is a household brand and the products offered by OS is associated with
the household necessities. Although the products such as the laundry detergents is quite popular
in the local market, it may not meet the expectations of the customers of the global market and
for that, innovation is the key strategy to maintain a competitive advantage both in local and
global market (Bashir & Verma, 2017).
However, this strategy requires extensive research on the needs and preferences of the
consumers in the global market. OS is required to identify the target customers and adapt to their

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requirements and expectations from a new product. This shift or adaption requires continuous
innovation on the products, which in turn can contribute to maintaining the competitive
advantage of offering quality products to the consumers in a low cost.
2. Investing more on the Area of Expertise: Another recommended strategy of
maintaining the competitive advantage in the global market is to invest and improve the area of
expertise. In the local market, the product “laundry detergent” have been quite popular and this
product have been profitable for the company as well. The strategy is to invest more on this
product and its sub products to make the product better and suitable to be launched on the global
market. However, success of this particular strategy in maintaining the competitive advantage of
the company would be possible only after understanding whether the particular product will be in
demand in the global market or not (Anwar, 2018).). Therefore, understanding the market trend
and strategically selecting on which particular product the company should invest on is necessary
to make this strategy work. It can be assumed that since the laundry detergent product has been a
success in the local market and since it is a necessity of every household, targeting this product
to make it more suitable for the global audiences can be a good strategy (Herrera, 2015). The
current market condition for OS indicate that the laundry detergent is their area of expertise as is
a major competitive strength in the local market. Therefore, it is of foremost necessity to
evaluate the demand of that particular area of expertise on the global market prior to applying
this strategy to maintain a competitive advantage.
3. Close Monitoring of the Competitors: The success of OS has resulted in introduction
of the several competitors who sell similar organic products thus the current market for OS is a
competitive market. One of the most important strategies of increasing the competitive
advantage is to monitor these competitors to have an idea of the strengths and the weakness

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(Talaja et al. 2017). Close monitoring of the competitors is a necessary step towards maintaining
the competitive advantage. The competitors can produce replica of the products offered by OS
and can challenge the competitive position of the brand. Close monitoring of the competitors will
enable OS to identify the weaknesses of the competitors, which can be further used to innovate
the products offered by OS to make it better.
This strategy will be effective only if OS is able to understand the market and its segment
to identify the areas or Niches that are not well serviced by the competitors. The success of this
strategy is further dependent on having a clear understanding of the wants and needs of the
customers (Fosfuri, Giarratana & Roca, 2016). It is necessary for OS to analyze the key reason
why the consumer will not buy the product from the competitors. This step involves looking for
the niches that aren’t well serviced by the competitors and it will give a competitive advantage to
OS. If there is no reason why the consumer will not buy from the competitors, OS requires to
develop a reason why consumers will buy the product from them and not from their competitors.
This can be achieved by innovating the products that are offered by OS.
4. Strategic Marketing: Since the products offered by OS is already a hit in the local
market, the company already has a reason make use of this success factor in strategic marketing
of the product in the global market (Euchner & Ganguly, 2014). Effecting marketing of the
products is a necessity for an organization to differentiate and focus on providing value to the
consumers. This is therefore another proposed strategy of targeting the customers for selling the
products directly to the customers. Strategic Marketing further enables a company to provide a
detailed idea of the product to the consumers.

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The above discussed four points indicate the key strategies that can be followed by
organic solution to maintain a competitive advantage both in local and international market
(Wagner III & Hollenbeck, 2014). By following these strategies, it is possible for Organic
Solution to create a strong competitive position in the FMCG sector, which will further
contribute to its expansion in the global market.
Evaluation of Effectiveness of Strategic Alliances
Strategic alliance can be described as an arrangement between two companies to
undertaken a mutually beneficial project along with retaining its independence. Strategic alliance
is mostly preferred as this particular arrangement is considerably less complex and less binding
in comparison to a joint venture (Išoraitė, 2014). In a joint venture, two businesses are required
to pool resources for creation of an altogether separate business entity.
Strategic alliance can be effective while entering the global markets. A particular
company can choose to enter into a strategic alliance to improve its product line or to develop an
edge over the competitors. This particular arrangement is effective as it enables the both the
businesses to work together in achievement of a common goal (Brouthers, Nakos & Dimitratos,
2015). Strategic alliances are effective mostly because in this venture there is no fixed time till
which the two business require to work together. The strategic alliance relationship can be short
term or a long term agreement.
Strategic alliance is effective while entering the global market mostly because in this
agreement two company agrees to share resources. For example, a company that is typing to
establish is foot into a particular global market, can engage in strategic alliance with a local
business of that area to get an access to the already existing customer base. Strategic alliances

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therefore enable companies to share their customers as well resulting in a higher business profit.
Strategic alliance often entail resource sharing that is possessed only by one company (Jiang et
al. 2016). This is more beneficial and is needed while entering global markets. Therefore, it can
be indicated that strategic alliance is quite flexible in terms of sharing of resources and the
benefits.
Competing Global Strategies:
A global strategic alliance is requires to be established in organic solution, considering
the fact that the brand is a household brand. OS is in need of support from a local business so
that it is equally successful in the global market as well. This type of strategic alliance is mainly
establishes when a particular company wishes to edge into a related business in a new
geographic area. This is the case of Organic Solutions as well and the most significant competing
global strategies that can ensure success in the global market is to enter into a strategic alliance
(Lasserre, 2017). OS is a household brand and consumers may not easily switch to an altogether
new brand even if OS try to expand to the global market (Lin & Darnall, 2015). Therefore, one
of the most essential competing global strategy is to enter into strategic alliance with a local
company, which will enable easier brand recognition in the global market and will further
contribute to easier customer reach. The strategy of engaging in global strategic alliance is
effective and beneficial for OS as the cost of the strategic alliance is mostly shared equally
among the two shareholders. Furthermore, this strategic alliance will provide a flexibility of
controlling the resources in the new geographic area thus will enable OS in maintaining their
competitive advantage.

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It is necessary for OS to develop a strong and competing global strategy as a multi
country strategy is quite suitable for industries where multiple competition has a high
dominance. The strategic alliance will provide OS with the needed domestic responsiveness in
the global market. Domestic responsiveness is a necessary need for Organic solution as this
brand is a household brand (Frynas & Mellahi, 2015). Therefore, engaging in a strategic alliance
is an effective global strategy that is needed to be implemented by Organic solution to ensure
maximum domestic responsiveness and business benefit for OS.
Evaluation of the Threats and Opportunities
Digital Marketing is a necessary need for strategic expansion in the global market. Digital
Marketing can be defined as advertising that are delivered through digital channels, which
include social media, mobile application, email, web application and search engine. Digital
marketing is an important consideration for global expansion as it allows a company to reach a
larger number of audience (Tiago & Veríssimo, 2014). The use of digital channels for marketing
is a cost effective approach as well since a larger number of audiences can be reached at once by
making use of the digital medium. Therefore, digital marketing is a part of strategic marketing
process and it can be beneficial for Organic Solutions. Prior to discussing the process in which
OS can be benefitted from digital marketing, it is of foremost necessity to evaluate the major
threats and opportunities that can be faced from a digitally networked world for the marketers.
Threats from Digitally Networked World for Marketers: Digital marketing has gradually
become an essential need for both local and global brand and therefore, investing on effective
digital marketing strategy is a significant goal for the marketers (Leeflang et al., 2014). However,
there are certain threats associated with a digital networked world that are required to be

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managed and eliminated to realize the key opportunities provided by digital marketing. These
threats are listed as follows-
1. Digital medium is a public platform which is open for all types of audiences and
therefore, along with positive reviews there are chances of getting negative reviews as well. If
there are a large number of negative reviews it can affect the normal business execution.
Therefore, the threat of negative reviews can significantly affect the overall business
performance.
2. Uncertainty is another threat associated with a digitally networked world for marketers.
The digital marketing strategy may work well for a particular brand while it may not work at all
for some other brand. In case a digital marketing strategy does not work for a brand, it can result
in negative publicity, which in turn can prove to be a significant threat to the brand or the
company as a whole (Yasmin, Tasneem & Fatema, 2015). Digital medium is quite uncertain,
which prove to be a significant threat as well.
3. A digital network has significantly lesser number of barriers to entry in comparison to
traditional marketing and therefore, the internet strategies can be easily imitated. This is another
significant threat associated with digital marketing (Chaffey & Ellis-Chadwick, 2019)
4. Another significant threat linked with a digitally networked world for the marketers
include the privacy and the security issues. Cyber security threats are significantly common in
digital network that can result in data compromise leading to severe security vulnerabilities.
Digital marketing incurs the above discussed threats and these threats are requires to be
effectively managed and the digital marketing strategy to be developed should incorporate
mitigation approach for the above discussed threats (Stone & Woodcock, 2014).

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Opportunities from Digitally Networked World for Marketers: Digital network,
especially internet makes it possible for the marketers to target and reach the consumers directly
without investing in different channels or complicating the distribution channel (Saura, Palos-
Sánchez & Cerdá Suárez, 2017). The technology provide various opportunities to the marketers
which the marketers can employ to market their products and services directly to the customers.
The opportunities, for the marketers from a digitally networked world are indicated as follows-
1. Digital networked marketing provides an opportunity to build people trust and brand
reputation in a relatively shorter time. Digital network is capable of providing real time results
and it is therefore a significant opportunity of improving the business benefit
2. Marketing in a digital network is significantly cost effective that traditional marketing.
3. Digital network provides the opportunity to the marketers to have a control over the
different marketing channels and develop digital marketing strategies for coordinating the exact
target audiences (Chaffey & Smith, 2017). A successful digital marketing strategy guarantees the
commitment that a targeted customer is ready to get associated with a particular brand or a
business.
4. Digital network provide an opportunity to directly connect with the customers Digital
channels make it easier for the customers to provide their feedbacks on a particular product or a
brand as a whole, which in turn helps improving the products or the services offered by the
brand.
How Organic Solution can benefit from Digital Marketing?

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The above discussed paragraphs, provides an idea of the key threats and opportunities
associated with digital network and digital marketing. Digital marketing can significantly
provide a number of benefits to Organic solution. Since OS is planning to expand their business
globally, the strategic use of digital marketing can help in easier identification of the target
audience and can further contribute to understanding the need of the consumers.
OS can make a strategic use of digital marketing to establish the uniqueness of their
product and to establish how the product has become a household favorite within a few days.
Furthermore, the use of digital marketing channels will prove to be a cost effective alternative for
traditional marketing (Kaufman & Horton, 2014). The digital marketing process will allow OS to
connect directly to the probable customers who are interested in purchasing the product.
Conclusion
The essay discusses the case of Organic solution. The company has been successful in
establishing a strong domestic market with their organic products. The organic products were
earlier used to be for the niche market; the products offered by OS has gradually increased the
demand of these products beyond the niche market. With the success in the domestic market, the
company aims in expanding to the global market and for that, maintaining the competitive
advantage becomes a necessity. The essay provides a comprehensive discussion on maintaining a
competitive advantage in this competing market. The success of OS has resulted in evolution of
different brands offering similar products and therefore, maintaining the competitive advantage
becomes a necessity. One of the global competing strategies that OS need to implement is to
enter into a global strategic alliance to ensure maximum business profit and the needed domestic
responsiveness. The essay establishes the effectiveness of entering into a strategic alliance and

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why entering into a strategic alliance is a necessity for OS. Since OS is planning to enter into
global market, digital marketing becomes an important consideration. The essay evaluates the
threats and opportunities that can be faced from a digitally networked world of the marketers and
establishes the benefits that Organic Solution can realize from digital marketing.
References
Anwar, M. (2018). Business model innovation and SMEs performance—Does competitive
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Bashir, M., & Verma, R. (2017). Why business model innovation is the new competitive
advantage. IUP Journal of Business Strategy, 14(1), 7
Brouthers, K. D., Nakos, G., & Dimitratos, P. (2015). SME entrepreneurial orientation,
international performance, and the moderating role of strategic
alliances. Entrepreneurship theory and practice, 39(5), 1161-1187.
Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. Pearson UK.
Chaffey, D., & Smith, P. R. (2017). Digital marketing excellence: planning, optimizing and
integrating online marketing. Taylor & Francis.
Euchner, J., & Ganguly, A. (2014). Business model innovation in practice. Research-Technology
Management, 57(6), 33-39.