Mnc's : Learn By Doing Or Before Doing?

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MNC’s – Learn by Doing or before Doing? Companies are constantly reinventing themselves in the name of profit. International business strategies are one form by which companies are able to successfully compete. There are numerous strategies capable of generating abnormal profits or taking a company into bankruptcy. The spectrum holds no magic formula as a variety of resources and capabilities is necessary to successfully compete. What works or is frowned upon in one market can become a cash cow in another. This was demonstrated by Lenovo, who has continued to grow despite declining sales in the U.S. computer market. Their ability to grow has been driven by capturing share in emerging markets such as China (Gupta, 2012).…show more content…
In this age of hyper competitive markets, a firm’s ability to sustain a competitive advantage is reliant on executing a strategy that creates a series of advantages over time (Wiggins & Ruefli, 2005). Businesses and the people running these businesses are graded based on how they do on Wall Street. Increased profits, positive company buzz, all help generate company value. Individuals running successful companies are only as good as their last quarterly report. Businesses and their stakeholders can be a fickle bunch. They require continued returns on their investment, creating a what have you done for me lately atmosphere. Many businesses can reach a point where they have saturated the market with current offerings, and the pipeline of what’s next has not arrived. One opportunity afforded to these businesses is to consider expanding into other untapped markets. Depending on the nature of the business, and the objectives of the company, opportunities can present themselves in developed or emerging countries. Success within these countries begins with understanding their markets, and delivering an offering that meets an unmet need, at a price point that makes it appealing to the target audience. Understanding a new market’s needs and developing a business model capable of delivering on those needs relies on a solid strategy. A solid strategy is predicated on understanding barriers to playing within the institutional framework. Understanding
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