Unit 6 Seminar

Unit 6 Seminar

[Name of the Writer]

[Name of the Institution]

Unit 6 Seminar

Strategic Positioning and Value Creation:

While making the strategy for the business, strategic positioning is a crucial step. It determines the choice which helps to competes and serves the consumer in the markets. In a nutshell, strategic positioning provides the plan for attraction, satisfaction, and retention of the consumer. For example, an individual when starting his business, his main focus is always customers. Therefore strategic positioning creates opportunities to get customer loyalty. Value creation is the main goal of the business entity. Value creation helps in the selling of goods and services to the consumers and increase in stock price and investment for the shareholders.

Basic entry decision:

Whenever a person decides to start his business and try to enter the market, he follows three basic entry decisions include; which market to enter, when to enter, and at what size. For instance, when an individual invests his money for business, first of all, he decides where should he invest, in which market and what is the most profitable business that he can run. Secondly, he seeks for the right time to avoid any loss or risk. Thirdly, he focused on the amount that needs to be invested to make a profitable business.

Entry Modes:

Following are the entry modes with their advantages and disadvantages.

Exporting: It can locate and experience curve economy of the countries, but it has a problem of trade barrier and local marketing agents.

Franchising: It has low costs and risks for development, but it has the inability of controlling quality as well as to engage the global market.

Licensing: It also has low costs and risks like franchising, but its disadvantage is the inability to control technology and realizing experience curve economies.

Wholly Owned Subsidiaries: It can control technology and engage global economies, but it has high risks and costs.

Turnkey Contracts: Country where FDI is restricted ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"G7VZnUmv","properties":{"formattedCitation":"(\\uc0\\u8220{}Global Business Today,\\uc0\\u8221{} n.d.)","plainCitation":"(“Global Business Today,” n.d.)","noteIndex":0},"citationItems":[{"id":116,"uris":["http://zotero.org/users/local/rVaVAHaF/items/D8N8XJXF"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/D8N8XJXF"],"itemData":{"id":116,"type":"webpage","title":"Global Business Today","URL":"https://www.mheducation.com/highered/product/global-business-today-hill-hult/M9781259686696.html","accessed":{"date-parts":[["2019",2,12]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (“Global Business Today,” n.d.), it earns revenue from technology, but it does not have the presence of long term market.

Joint Ventures: It has access to political acceptance and partner’s knowledge but just like licensing and franchising it cannot connect global strategic coordination.

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Global Business Today. (n.d.). Retrieved February 12, 2019, from https://www.mheducation.com/highered/product/global-business-today-hill-hult/M9781259686696.html