Question:
Discuss about the Strengthening National Supply Chains.
The main purpose of this paper is to critically evaluate the approaches used in lecture 4 and lecture 5. The selected lectures are lecture 4 which assert global strategy as business model changes and lecture 5 for target markets and modes of entry. In order to fully analyze this report, there are various industries that will fall under each category. For the case of global strategy as business model change, the selected industries are computer industry (hardware or software) and pharmaceutical industry. On the other hand, the target markets and modes of entry will involve the industries of hospitality as well as car industry.
Global strategy as business model change would typically refers to a mechanism applied by industries to shift from local operations towards international operation due to application of global strategy. This paper will critically analyze how computer industry and pharmaceutical industry applied global strategy so as to shift the business operations and any changes that occurred base on that mechanism (Segal-Horn 2009). On the other hand, target markets and modes of entry typically means mechanisms applied by industrial business to identify targeted markets and modes and mechanisms utilized to enter in those markets. This could be perfect market structure, monopoly market structure or oligopoly market structure. Therefore, the selected industries of car and hospitality will be used to satisfy the asserted motives.
Lastly, this paper will offer counter argument for the options of the theories used by these industries that have been used to address critical cases, scenario, phenomena and situations for the success of the industry against the provisions offered by these theories.
Computer industry is one of the emerging companies in the entire globe. Initially, a lot of people asserted that this industry was ventured by few individuals with excellent skills. Therefore, very few innovations were done in the initial stages. This made the industry to operate domestically or rather locally (Saloner 2009). In the present business models, there has been a lot of advancement in computer industry based on the fact that many individuals are venturing to this industry. Their main aim is to learn new skills, expertise and knowledge in computer industry. Basically, this industry deals with two aspects. That is, hardware and software development.
For the purpose of this report, we narrow down to how computer industry utilize software development in relation to global strategy as business model change. Typically, software is defined as computer system procedures that make the hardware in the computer to operate as well as promoting the reliability of computers skills by computer experts (Prasch 2008). Software development is the main aspect in computer industry that has led to application of global strategy by this industry. It is important to assert that, software development and their application is not something that can sustain itself locally. There is a need for the industry to expand the operations to other sides of the globe. This expansions is at times brought by the high demand of these software by computer users. This simply implies that, in any business need to change the operation by increasing the employed capital, net worth and international publication, then global strategy must be their first priority.
Computer industry has applied this strategy to promote business operations that have brought many positive changes. First, computer industry has made the application of computers irrelevant without use of software. Therefore, software developers are working day in day out so as to satisfy the list of preference by computer users (Peng 2013). There are many software developers all over the globe. Each of them has specific skills that tend to be unique in nature. In that connection, a computer industry may require to develop a software as per the specification of a particular client. By assessment, the computer company that have earned the contract make lack a specific software developer. This is the best time to apply global strategy. Therefore, many of these companies tend to reassign the contract to a different expert from other sides of the globe. Other the software has been developed, the two contractors share the profit based on the terms of the contract (Tallman 2009). This kind of business model will enable computer industry to generate more wealth as well as shifting to global operations.
In addition, the industry uses the global strategy to bring business success. One fact about global operation is wider market. There are many consumers whose needs and wants are left unsatisfied by the supply available at a particular time. This usually happen when the operation of the business is in global level (Lesserre 2012). On the other hand, there is excess supply and low demand of some commodities. This usually happen when the operation of business is local. For the case of computer industry, the theory of demand and supply is well distributed. This business become satisfying because the demand of software is global and the industry need to operate globally. The patent and copyright frameworks have ensured that the software protection is maintained to avoid counterfeits. Therefore, global strategy is very important to enhance positive changes in business model for computer industry (Hughes 2008). The reasons behind the success of computer industry are the monopoly of the industry in software development and huge demand for application software all over the globe. This is because the world is operating in computer mode at present.
Pharmaceutical industry is one of the very important industry in the entire world. This is because the industry deal in production of drugs needed to support life. This industry have various approaches in regard to global strategy as business model change. This industry has monopoly and require professional skills to operate (Hitt 2014). This has enabled the industry to operate globally so as to satisfy the high demand associated to products manufactured by the industry. The approaches used include research on drugs used in the medical field which involve collection of data from all corners of the world, distribution of drugs to all sides of the globe from the source as well as analysis of drugs administered by doctors from various hospitals.
This industry applies approaches that are sustainable in the long run. This is very important as far as business expansion is concerned as well as application global strategy to model this kind of an industry (Fletcher 2012). To start with, the first approach used is research. This is the basis of pharmaceutical industry due to its sensitivity. Supporting human life and treatment of disease along with prevention of disease need products that have been approved globally (Daft 2015). Therefore, the research approach ensure that the products from pharmaceutical industry fully adhere to the standards set by World Health Organization (W.H.O). Therefore, pharmaceutical companies applies global strategy to conduct conclusive research on the nature of products. This ensure that the drug under consideration will be acceptable by the consumers all over the world. This fully market the products in the entire globe and bring the required changes in the business model.
The last approach used by pharmaceutical industry is monopoly. The production of drugs or rather medicine by pharmaceutical industry have monopoly rights. This is based on professional aspect of it and sensitivities (Christopher 2011). This promote the use of global strategy to satisfy the ever increasing demand for pharmaceutical products.
The reasons behind the success of pharmaceutical industry as asserted by use of theories in global strategy include the requirement of pharmaceutical products in the entire globe, monopoly in the market structure and regulations set by world health organizations on favor of pharmaceutical industry.
Lastly, the counter argument in application pharmaceutical products occur where some group of people from different countries apply natural ways in medication and traditional methods to overcome health problems (Chopra 2012). Many of this traditional medicine achieve the underlying objectives that would be achieved by pharmaceutical products. For this case, global strategy does not apply as business model change.
In order to know the target market, an investor needs to know that there are factors that need to be considered. These factors include the demand and supply of a commodity. Automotive marketers and their agency marketers are the most known auto-shoppers who are not easy to reach. This could be caused by a number of factors. For instance, the fact that they are always on their move .There are several factors which are well known. These factors are proven marketing methods that are essential in car sales (Cachon 2012). Those individuals who divide activities that have been modified into databases and can later be resold for the purpose of marketing are known as direct data marketing audience.
Many investor in the present world have ventured into car industry. This is not easy in the initial stages. There is a need to target market and to follow the required process so as to enter into the market. The target market under this particular industry would be related on factors such car models, cost, acceleration, effect of weather on cars, demand and supply mechanisms.
The main market for car industry is potential buyer of the car. Therefore, it is good to check the specifications asserted by the customer in the invoice. This will ensure that the required specifications are adhered to (Bragg 2015). This will ensure market reliability. The other target market strategy for car industry is companies. Many companies tend to buy several cars for the operations of daily activities. Investors in car industry need to apply for tenders so as to be awarded with the supply. Finally, the target market will fully be achieved by checking the tenders given by government institutions and non-governmental organizations who may need a fleet of cars at a particular point in time. Car industries also need to market their cars using online links such as company website and OLX.
Finally, there is the required mode entry of entry. First, the investor need to adhere to the rules and regulations along with other relevant standards set by the industry. This will ensure cohesive business operations. There is a need to have the minimum capital requirement for entering this industry.
This industry have absorbed around 70% of world population in terms of investment. Hospitality industry is very wide parse. This industry include hotel and catering services, tour and travel management, accommodation services, booking services and many other services offered in relation to factors attributed to hospitality theory.
For target market in this industry, potential investor need to value various aspects as far as marketing is concerned. To start with, the investor should assess the population density. The areas having good and growing population indicate that the economy of that particular market structure is sustainable in the long run (Bolstorff 2011). Therefore, there is a probability of perfect market and the investor is like to expand. Again, the investor need to check the policies set by the government regarding hospitality industry. Incentives implies that the government is in full support of hospitality activities. On the other hand, high taxes and trade tariffs indicate that fact that the government discourage hospitality activities in the market. The investor will in a position to assess these factors and reach into a conclusion.
Moreover, the demand and supply mechanisms are also important in targeting market structure in hospitality industry. Areas with numerous travelers as well as tourists forms a unique market structure. This is because the demand for quality hospitality services is high.
Mode of entry to hospitality industry is to adhere to the requirements set along with specified standards (Awuor 2016). Hospitality industry deals with consumption of instant goods and services. Therefore the investor need to ensure that the quality produced is in accordance to list of consumer reference.
The reason behind the success of approaches used in hospitality industry is the huge demand of commodities as well as wide range of activities in hospitality industry.
Conclusion
In conclusion, these industries are in great performance in the market structure. The application of theories and approaches in these industries based on global strategy as business model change and target market and mode of entry cannot be taken for granted. A further study need to be developed to uncover the relationship between these industries and other lectures so as to arrive at a conclusive point of view.
References
Awuor, P 2016, Theory of Change for Supply Chain Capacity Development: A Framework for Strengthening National Supply Chains: Volume 1 (PSA Supply Chain Capacity Development), CreateSpace Independent Publishing Platform.
Bolstorff, P 2011, Supply Chain Excellence: A Handbook for Dramatic Improvement Using the SCOR Model, AMACOM.
Bragg, SM 2015, Accounting for Inventory, Accounting Tools.
Cachon, G 2012, Matching Supply with Demand: An Introduction to Operation Management, McGraw-Hill Education.
Chopra, S 2012, Supply Chain Management, Pearson Education.
Christopher, M 2011, Logistics and Supply Chain Management, FT Press.
Daft, RL 2015, Management, South Western College Pub.
Fletcher, F 2012, Business Problem Solving, Routledge.
Hitt, MA 2014, Strategic Management: Concept, Competitiveness and Globalization, South-Western College Pub.
Hughes, D 2008, The Ultimate Supply Teacher’s Handbook, Continuum International Publishing Group Ltd.
Lesserre, P 2012, Global Strategic Management, Palgrave.
Peng, MW 2013, Global Strategy, South-Western College Pub.
Prasch, RE 2008, How Markets Work: Supply, Demand and the Real World, Edward Elgar Pub.
Saloner, G 2009, Strategic Management, Wiley Publisher.
Segal-Horn, S 2009, understanding Global Strategy, Cengage Learning.
Tallman, S 2009, Global Strategy, Wiley-Blackwell.
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