The Strategies For Multinational Corporation

Over time, companies desire to improve their products in the market which may involve changing the quality of their products and consequently increasing the costs. While customers would want the improved products, they often are unprepared meaning that they may shy away from purchasing such products. In this case, emerging companies tend to take advantage of such a market and introduce concepts that would be appealing to the customers and hence overpower the existing companies (Magretta,2012). Markides (2006) explains that disruptive business models are the decisions that a company makes that enables them to outshine or be above competitors in an individual market. The disruptive model focuses on disrupting the existing market and making the customers prefer the new company as opposes to the others (Magretta,2012). In this case, change of infrastructure can affect the way business is done. For example, transport companies can choose to implement a train station in a very congested road network to gain a competitive edge and also ensure that customers travel with ease.

Another company who use disruptive business model is Walmart. In large retailer industry, Walmart has unique business model then any of their competitors. They offered everyday low price which is too much for his competitors. They also

3-However, by doing so, companies unwittingly open the door to “disruptive innovations” at the bottom of the market. An innovation that is disruptive allows a whole new population of consumers at the bottom of a market access to a product or service that was historically only accessible to consumers with a lot of money or a lot of

The term Disruptive Technology describes a technological product that has been created and has had a ground breaking effect which has in turn shaken up the industry, disrupting the existing market. The new innovation can be used by companies as competitive advantage by altering and enhancing the way in which their business is conducted. This is in accordance with Clayton M. Christensen, a Harvard Business School professor (1997).

Disruptive Innovation Theory by Christensen (1997) is one of the important practice of strategic technology innovation. Disruptive innovation has a main focus on development of organization capabilities, developing new markets for technologies. According to Clayton Christensen the man who coined the word, disruptive innovation is a process. He sees that the process became a mechanism through which technology and services are improved with long term surviving nature of organizations. Some examples of disruptive innovations include the calculators which are portable, LCD televisions which replaced cathode ray tube televisions, skype calls revolution in telecommunication in system, Transistor radios. Theory aroused various disparities both in business and academic. Authors like Christensen, 1997, Raynor 2003, Gillbert 2003, Govindarajan and Kopalle 2006 has stated the importance of Disruptive innovation. Various strategies are developed in understanding the theory of Disruptiveness. The main aim of the Literature review is to 1) Understand the concept of disruptive innovation, implementations, 2) Challenges and barriers faced to disrupt, 3) Managing and strategic ways how an organization should implement.

Multinational companies influenced by national strategies by making governments rival each other to be appealing to multinational company interest in their nation. Multinational companies frequently hold control over nearby and national governments through a syndication on mechanical and licensed innovation. Due to their size, multinationals can likewise significantly affect government approach through the danger of market withdrawal.

It is possible for established, well-known and admired companies to be unable to maintain their hold as the leader in their respective industries when faced with certain types of technological change. “Disruptive” innovations

Globalization is the establishment of economic, political, social, military, scientific or environmental interdependence that span worldwide distances (Steiner). This process has evolved for hundreds of years. However, this trend has rapidly increased over the last century, primarily due the forces of an ever changing society, government, and business environment. Corporations are expanding their business operations all over the world and are evolving into multinational corporations. Companies choose to invest capital for starting, acquiring, or expanding their enterprise to another country predominately for a few factors. Investing capital in a foreign nation can lead to growth. By entering a new market, a new segment of consumers can be reached, leading to new potential customers (Steiner). In addition, corporations can seek efficiencies in a foreign nation. With different resources located all around the world, as well as, generally less strict regulations on business in developing countries, multinational corporations can take advantage of cheaper labor, economies of scale, and other resourcing efficiencies to reduce their overall costs (Steiner).

The case study of “Disruptive Innovation” is a studying that concentrated and described an innovation as the affordable price products for people in the entire world to use. This research indicated about certain disruptive innovations such as the laptops, the routers, smartphones or desktop photocopier that are the substitutions for other companies’ commodities. Furthermore, Porter five forces strategy is a structure to examine the level of competition in today’s market and to make an improvement for the business strategy. Likewise, these forces are including: the threat of new entrants, when suppliers have power, when customers have power, the threats of substitutes and intensity of competitive rivalry. Therefore, this report was assigned to analyze Porter’s five forces strategy for applying toward the case of disruptive innovations and demonstrating on how it affects or relates to most of the companies worldwide.

A disruptive innovation is a concept of innovation that encompasses and establishes a new market by disrupting the current trends in the market and their existing value network (West, n.d.). It results in the replacement of the ruling market firms, alliances and products by capture a niche and an untapped field in the market. Usually the untapped market includes a segment of customers whose needs are either not addressed or overlooked. Capturing these essentials, thus the concept defines a substantial societal influence. Despite a disruptive innovation being revolutionary in nature, an innovation does not necessarily mean disruptive always. In most cases, it has been seen that the light of disruptive innovation is usually brought by the outsiders instead of the existing pioneers in the market. Basically, a process of disruptive innovation takes a longer

Due to the globalisation is developing rapidly worldwide, doing business effectively is the best way to ensure the economic’s growth as well as to gain more reputation for the organisation. In global expansion strategy, a multinational corporation (MNC) is considered as the most powerful acceleration for administrators. Acknowledging the advantages of MNC, many businesses started to invest in developing countries to target the cost-benefits and broaden their scope of activities. This leads to the unexpected rise of MNC in recent years. However, managing a multinational corporation in another country is not a simple issue because the world is changing day by day and the success of each firm is based on both internal and

Multinational Corporation can be defined as a corporation that has its facilities and other assets in at least one

When the need of wanting to be different arises, the need to innovate takes a strong hold in one’s mind to bring about new changes that are often challenged in many different styles, manner, methods and modes. To my understanding different types of innovations requires and employs different innovative strategy or strategies. Which in turn determines the growth phase of the organization and its strategic approach and desired outcome of the innovation.

The increasing significance of MNCs in 1950s transformed them to the dominant phenomenon in the international economic relations since then. It has triggered a strong interest among the scholars, media, and society. The surrounding controversy around MNCs has triggered the need and necessity for the analysis due to the fact, that it is described by some scholars and economists as the principal instrument for maximizing world welfare, and by others as the imperialistic agents (United Nations Publication 1973, p.1).

The three major segments which are operated by the Walmart primarily are Sam 's Club, Walmart U.S and a distinct division for Internationalisation that is Walmart International. There is also a great expansion of the company business through e-commerce (Walmart, n.d. B). Today the Company is operating with three extensive product categories units internationally: Wholesale stores, Retail centres and others. These categories are composed of numerous format including discount stores, retail websites, supermarkets, hypermarkets, apparel stores and restaurants (Walmart, n.d. C).