Essay about The Sources of International Competitive Advantage of Vw

2. Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage

2. Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry?

Service innovation. Customers are open to increasingly outsourcing supply chain and logistics activities to third parties. Flexible and innovative solutions are highly important to gain and retain profitable market share.

its brand to more quality-oriented and had adjusted model prices in the view of new

Volkswagen wants to become a global and environmental leader in the automotive world and has developed the “Strategy 2018”. The “Strategy 2018” is stated in their latest annual report in the goals and strategies section as follows:

A company needs to create a series of programs to differentiate their product from those from its competitors and to appropriately price the product to achieve the maximum demand, in order to set up the dynamics of its competitive strategy (David, 2007). The competitive strategy of a company is also expected to offer better products or services to its customers, at a reasonable cost. Due to the mass influence of the external environmental on the customers’ preference, it is vital for the company to develop an available competitive strategy to be able to solve a series of problems, and ultimately to improve the company’s performance. Those problems include: how to differentiate its products or service from competitors, how to create market segments to maximize demands, and how to offer a wider range of products or services to better meet the customers’ needs at more acceptable costs (David, 2007).

2. How would leveraging capabilities with respect to the Indonesian market differ between an Australian/New Zealand producer of computer software and an Australian/New Zealand manufacturer of automotive parts?

Volkswagen goal is to become the ecological and economical leader in the automotive industry and to be the world’s leading automaker by 2018. Volkswagen has four main objectives through which they will achieve their goals.

We found innovation, cost reduction and market conditions as key elements supporting a successful internal strategy and strategic alliance and diversification to be among the most widely applied strategies for a foreign market penetration and development, while fusions and licenses were the least preferred.

technology project. The BPTO produced weekly status reports and monthly budget reviews helping the company gauge where it was heading towards. Thus the alignment started advancing (Austin, 2007).

Bayerische Moteren Werke AG (Bavarian Motor Works), or BMW, is a German luxury vehicle, motorcycle, and engine manufacturing company founded in 1916. The company has its headquarter in Germany, but also has an American facility in Spartanburg, South Carolina. In addition, BMW is celebrating its 100-year anniversary this year. Being in the automotive industry, one would be surprised at how a company values sustainability, especially when it focuses on the interrelationship between the triple bottom line. However, the BMW Group has been named the world’s most sustainable automotive company again by the Dow Jones Sustainability Indexes (DJSI). The head of Sustainability and Environmental Protection, Ursula Mathar, stated, “For us, sustainability is an important part of our identity and our strategy. We have accomplished a great deal in recent years and continue to set ourselves concrete goals for the future … This shows that our activities continue to have an impact and we are on the right track” (The BMW Group). This company defines its sustainable operations by taking social and environmental responsibility for everything they do. The BMW Group has extensive initiatives that affect the planet by reducing its carbon footprint, their profits by effectively utilizing renewable resources, and their people by providing diverse opportunities and protecting self-wellbeing.

This report will look at the feasibility, the riskiness and the profitability of an expansion into the German car market. First, we will analyze the host country, Germany, with respect to its economics, political, legal and cultural aspect. Second, a SWOT analyses will be conducted to determine if Great Motor Wall is in a good

Describe and analyze the factors identified in the Zahra article as giving competitive advantage to new firms in the globalized economy.

Any country should use porter diamond theory of national advantage. It's designed to help understand the competitive advantage nations. It suggests that the national home base of any organizations are playing a supportive role in shaping the size or scoop to which it is likely to achieve advantage on a global scale. This home base provides basic factors, which support organizations from building advantages in international competition. Porter classifies four determinants: Factor Condition, Diamond Condition, Relatives & supporting and Structure, strategy & Rivalry. Egypt government acts to catalysts to improve Egypt position in a globally competitive economic environment. They found that they can create new factors such as skilled labor and high technology (Porter M., 1990). Porter's diamond model suggests threat there are inherent reasons why some nations are more competitive than others on an international market. Another factor that influence in competitive advantages such as the policies that put by government. One of the most influencer policies is (FDI) Foreign direct investment

exists when the firm is able to deliver the same benefits as competitors but at a