competitve advantage

1842 Words8 Pages
“A firm that already has sustained competitive advantage in its domestic market may not have the same advantage in an overseas market. Discuss the issues that this creates for a firm, and how it might exploit its resource advantages to secure successful market entry and create competitive advantage in a new overseas market.” With the global trade network more integrated, according to Pearce and Robinson (2009), firms tend to enter foreign market to gain more profit due to the maturity of domestic market, excess capability, and potential purchasing power in foreign market. Therefore, as a firm has already achieved success in its domestic country it might consider enter a new market. Before it operates in a new market, it has to consider…show more content…
Therefore, when a firm enters a new market, it should not only focus it competitive advantage but also match the requirement of local people and adjust its strategy to current situation. Disneyland built the sixth Disneyland in Shanghai and it will operate in 2015. Consider it is as a cross culture theme park, it should learn the experience of other Disneyland in other countries. French Disneyland (Trigg, 1995) which has not reach its expectation. It failed in France because it used English as official language in it which annoyed French, alcohol was forbidden in French Disneyland and this policy against the behavior of local people. What is more, it had conflict with farmers for land expropriation and caused opposition in France. Another example to support the argument is Tesco. Tesco lost 1.8 billion in USA, a lot of factors led to its failure, and one of the most important factors is Americans having different eating habits from European. Tesco has not considered it and eventually fail in a different culture environment. In order to gain profit in
Get Access