Chapter 10.6, Problem 2CC

Summary Introduction

Case summary:

Company IA has had tremendous success. But, it is facing significant challenges going forward. The powerful competitors of Company IA have taken note of their success. Besides the external issues, the firm is also facing significant internal challenges.

The advent of new leadership is pushing the firm into the online sales of their products. It failed to realize that the internet is a big disruptor for retail business. It is facing major limitations due to its complex ownership structure.

To explain: If the facts post challenges for Company IA across the globe.

Explanation of Solution

The important point of discussion is to analyze the extent to which Company IA has localized the consumer preferences in their sales. The sales of food are predominantly affected by the local preferences. But, the sale of furniture is not that much affected by the local preferences.

Company IA has laid a cost leadership strategy all over the world. This strategy is allowing it to compete along with the rival firms along the globe. This strategy is allowing the middle-class members to also purchase and use Company IA products. This makes it a challenge for the competitors across the globe. Hence, Company IA is moving in the right direction in the aspect of competing globally.