|Type of paper:||Essay|
|Categories:||International business Business management Strategic marketing Leadership style|
In business management, it is more significant to realize the incorporation of various models and theories for effective and efficient business sustainability. And this implies the growth and expansion of the firm in the industry. In this regard, it is worth understanding the need for the firms to explore the best way to expand the business in foreign nations. However, this reflects the increasing demand for the products and services due to the increase of the consumers. In this essay, there is an exploration of the opportunities for firms to gain a competitive advantage in the market in foreign nations. Therefore, this reflects the need for the incorporation of Porter's Diamond Model, which provides depth insight into the level of competitiveness of a firm in the external environment. McDonalds, a fast food corporation has used the model in depth to earn the insight of company structure, and firm strategy.
Thus, it is more crucial to use Porters' Diamond Model to be in a better position of understanding approaches that are appropriate for the winning market in foreign nations. Nevertheless, this requires the realization of the need for consideration of Contingency Theory, which further implies the use of Yips drivers of internalization. And this is primarily carried out for the exploration of the advantage of foreign markets for the firms. In this perspective, there is a need for the description of the Resource-based review approach to understanding the required resources for successful operation and marketing.
As the world's globalization is growing, many firms find it necessary for the exploration of opportunities for the expansion of the business in foreign markets. The company ensures corporate standards that are ideal for productivity. They ensure that these standards are implemented in the management of each of the franchise location. McDonald's tends to apply a variation to the marketing mix so that it suits the conditions of either local or regional markets. Such an example is where their focus of the promotion strategies that involve the print media are in countries where such media is most popular, and there are others where they prioritize the television.
For depth insight of the international market, it is essential for consideration of Porter's Diamond Model, which finds out the deeper causes of the success of the business in the foreign exchange (Collins et al., 2016). As previously mentioned, the model primarily focuses on the external environment so that the opportunities of the firm can be realized wholly. In this context, it is more crucial for considering that the model help to understand the strength of given firms over the other firms. Thus, this provides us with depth insight into the reason why one firm can succeed in the market while the other firms find it difficult to survive in foreign markets (Holtbrugge et al., 2016). Porter's Diamond Model, further provides the reason behind the success of one industry in a particular region as compared to other sectors. And it is mainly a result of the high demand for the products or services in that region (Afzal et al., 2019). But this needs to be coupled with effective and efficient strategies of the firms for leveraging the opportunities available for the firms.
Since the model clarifies the main factors for a specific firm to attain sustainability in the foreign market helps to realize the importance of the model. This is primarily based on the fact that the model helps to assess the capability of the firm when planning to expand in the foreign markets (Liu et al., 2017). This is often complemented with the exploration of the reason why some nations had excelled in specific industries. Therefore, this reveals the close tie of the firm and the government to be in a better position of gaining a competitive advantage in the market. For example, car manufacturing companies in Germany are known for the production of modern and durable vehicles for foreign exchange (Chung, 2016). Therefore, this implies the factors influencing the competitive advantages of German car manufacturing companies in the international market.
Porter's Diamond Model merely describes various determinants necessary for the firm's competition in the foreign market. Product positioning for McDonald's is a method they use to gain competitive advantage, which includes the use of segment insights or information about the behavior of consumers that they develop through market research. This way, they can achieve a competitive strategy that translates to strengthening their brand name. They thus position their products correctly for the target markets. McDonald's has also had its ethical promotion through collaboration with suppliers to reduce the impact on the environment by the supply chain. The company is built on a foundation of personal and professional integrity. They earn the trust of people every day by serving safe food and their outstanding delivery.
In this regard, the examination of these determinants makes it easy for understanding the steps required for excelling in the international markets. Among the determinants, it includes demand conditions, factor conditions, firm's structure and strategies, and as well as supporting and related industries (Vlados, 2019). Nevertheless, the understanding of these determinants paves the way for acquiring the necessary skills and knowledge for competition. For the firm to gain a competitive advantage over the foreign market, it is required for the assessment of the factor conditions as Porter's Diamond explains. In this perspective, the model emphasizes the availability of resources for the firm to operate in a foreign country (Liu et al., 2017). For instance, the human supply necessary for effective performance needs to be assessed, but it is often coupled with capital and natural resources available for the production of the firm. Nevertheless, there are other factors such as infrastructure that need to be considered for the smooth transportation and sale of the products (Holtbrugge et al., 2016). The assessment of factor conditions is necessary for the improvement of the firm's conditions to compete more effectively in the foreign market.
It is quite clear that the firm's competitive advantage in the foreign market primarily relies on the level of home demand for the products or services. The increase in demand influence the firm to come up with new technologies and innovations, hence making it easy for gaining a competitive advantage over the foreign market (Liu et al., 2017). Moreover, the incorporation of new technology and innovation assures sustainable development and growth of the firm not in the domestic market, but also the foreign exchange (Collins et al., 2016). The success of marketing in the international market merely relies on the cooperation of multiple firms to deliver quality products or services.
Porter's Diamond Model emphasizes on the assessment of the supporting and related firms in the foreign country. This is aimed at establishing a joint venture to allow domestic firms to carry out the marketing and sale of the products due to their expertise in the behaviors of local consumers (Afzal et al., 2019). The joint venture is often more significant when the resources are scarce because it involves various firms in the manufacturing, marketing, and sales of the products in the markets. Thus, it maximizes the probability of selling more products and services in foreign exchange (Collins et al., 2016). This is also essential for the reduction of the reluctance of consumers over international products in local markets.
Furthermore, Porter's Diamond Model examines the strategies and structure of the firm's operations. Thus, this helps to explore the best policy and structure for gaining competitive advantages over the foreign market. Therefore, this requires the incorporation of strategies and structure that involves approaches essential for maximizing demand in foreign nations (Chung, 2016). Nevertheless, it is also critical to understanding that Porter's Diamond Model emphasizes the existence of rivalry firms in the international market. In this perspective, the firm is required to come up with high technology and innovation to win the market. But this is not enough without the consideration of the establishment of structure and strategies appropriate for providing quality products and services to the consumers in the foreign market (Holtbrugge et al., 2016). Most importantly, it is worth understanding the need for the incorporation of various models and theories to realize the full potential of the firm in the foreign market.
In business management, there is a need for consideration of the foundation laid by effective leadership. Business leadership is the backbone of the successful operation of the firm, both domestically and abroad (Collins et al., 2016). Therefore, this signifies the need for the incorporation of leadership theory to explore the required leadership for businesses to excel in a foreign market. In this perspective, the Contingency theory is deemed to be the most effective leadership theory for a firm willing to attain competitiveness advantage in the international market (Boeche, 2016). In this theory, it is asserted that there is no specific model of leadership of the business firm. But instead, there is a need for adopting the direction that primarily focuses on the changing situation of the firm in the market (Tsai et al., 2017). Nonetheless, this implies that the theory advocates for flexible leadership that can cope with diverse situations of the business.
As previously mentioned, the Contingency theory is more helpful for the firm willing to become competitive in the foreign market. It is quite clear that the approach emphasizes the combination of multiple leadership styles to achieve the desired goals for the business firm. For example, when a firm is expanding its business in a foreign market, it requires an understanding of the consumers' behaviors and other various factors that determine the mode of operation of the firm in the market (Ngo et al., 2019). Thus, this reflects the changing situation in the market, which forces the business to change its strategies, and sometimes the structure of the firm. There are two concepts that the theory is much more concerned with due to their depth insight of effective leadership for the competing firms in the market, particularly in foreign countries.
Firstly, competing firms do not have a specific style of leadership based on the fact that situations keep changing. And this does not favor the leadership style that is not flexible. Secondly, the theory emphasizes on the effectiveness and efficiency of the leadership style concerning the method that correlates with the situations at hand (Boeche, 2016). In this perspective, the competing firm in the foreign market is often required to incorporate the management approaches that address the issue at hand to maximize the profit through innovation and technology. The Contingency theory means that the argument is merely dependent on the situation at hand (Tsai et al., 2017). However, the approach provides the best method to determine the kind of leadership style for addressing the issue.
Fred Fiedler established the Least Preferred Coworker Scale, which is designed to measure the leadership style appropriate for a particular situation in the organization. And in this case, the leadership is assessed through the set of questions that reveals the best method for using to lead the employees.
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