Globalization has imposed on the world a blurring of national boundaries, intermingling of cultures, fast and disruptive change that includes change in technology and intense competition. In the present day and age, it is even more difficult to find sources of sustainable…
opportunities because it is only possible to sustain a longer-term future by constantly effort striving to enhance the competitive advantage of a firm. Having access to low cost factors of production cannot guarantee competitive advantage in a globalized world. A global value chain, innovation, differentiation and customer satisfaction etc. influence competitive advantage in a globalized world. This research paper presents a discussion about analysis of competitive advantage in an era of globalization.
Globalization is not a new phenomenon because international trade has existed since ancient times when recordkeeping began (Abele et al, 2008). The incentive for international trade was to access larger markets, which were foreign markets, and the quest for profit led to an intermingling of peoples, cultures, goods and ideas. However, despite the fact that globalization is an ancient phenomenon, it is possible to distinguish phases in the nature of globalization. Trade in the ancient world required merchants to haul goods to markets for sale at a profit over land or sea, but later sales offices were established at sales locations and depending on the demand, merchants could order required quantities of goods as desired. When higher value added products were in demand, differentials in cost of production associated with locations for production and markets forced business people to select production locations independent of home location. Now, international supply chains with worldwide cross-functional collaboration cater to the needs of sophisticated consumers demanding sophisticated products of high quality at affordable prices in an era of scarce raw materials, rapidly increasing prices for energy and diminished disposable incomes due to an increase in the price of basic food items.
McGregor (2010) states because of the evolutionary path on which the world has embarked, it is now necessary for firms to produce with the global in mind. Information and ...
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Amongst the numerous concepts and tools that can come under application for the problem related to the facility location and layout, centroid method came under consideration as the best applicable tool for the company Eldora (EDC) who were leading manufacturers of bicycle in the U.S.
Organizational resources, in their various forms, may also constitute a firm’s competitive advantage, but only if certain terms are met. This issue is explored in this paper. Emphasis is given on the prospects of an organization’s resources to become a competitive advantage but also the challenges that such process may face.
The business environment has undergone tremendous transformation over the last few years. There has been a fundamental shift from just concentrating on economic profitability to a business mode. The key to competitive advantage is through value creation and addition to the offerings to the stakeholders.
In the present day and age, it is even more difficult to find sources of sustainable competitive advantage than it was ever before, with constant changes in strategy to cater for changing realities and frequent action to take advantage of emerging opportunities.
A number of classical theories in international trade suggest that the element of comparative advantage dwells in the feature endowments that a nation may be lucky enough to come by. These factor endowments may include features such as land, labor, natural resources, as well as, the magnitude of the local populace.
It has been observed that every company or business desires to expand worldwide and operate globally. It is also known as the process of interchanging the views, products as well as cultures in the global periphery. The barriers for international business have been witnessed to have reduced significantly in the recent years.
The present study analyzes how companies use the global strategy to gain competitive advantage. Also the essential success factors of firms to succeed in the international business have been discussed. Add to that it has also been discussed that how companies can fail in the international market due to lack of planning and vision.
By operating under this scheme, business firms can offer its customers products of exquisite quality without inflating its price. But before expounding on global value chain, the term value chain should first be clearly defined.
The term value chain was first coined and defined by Michael Porter, in his Competitive Advantage book.
This ensures that the most productive people are brought to the front and appreciated accordingly. In most other workplaces, all people earn equal salaries whether they work equally or not.
On the downside, the worker’s pays are not
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