Case 7-Value Chains, Where, When and, Why

Only available on StudyMode
  • Download(s) : 466
  • Published : April 2, 2013
Open Document
Text Preview
Dynamism has always created opportunities but with the creation of opportunities, threats are also shaped. In addition, change creates opportunities that form strengths for some companies and weaknesses for others. The Dynamism that took place created many opportunities for companies from advance markets. For example companies like IBM that is one of the big companies already in the U.S with high technology which efficiently benefited from the change. IBM changed its strategy quickly in order to make good use of its “know how” and advanced technology and experience in invading emerging markets like India. Another example is Cisco that used the ignorance of the emerging markets of the technology that it has in maximizing its profits and growth. However, the experience and the advantages that the advanced MNEs have are faced with another opportunity for local companies. Local companies are more familiar with the market needs, conditions and capabilities which give them an absolute advantage in responding faster to wider range of consumers. Furthermore, local companies have the advantage of maintaining lower levels of cost that meets the great segment of the market. The opportunities of MNEs and local companies are different because MNEs use the opportunity of the emerging markets’ ignorance of knowledge while local companies use the opportunity of the markets’ need in low prices.

Question 3
I would work for a Western MNE such as IBM moving into a developing country because such a company would have a wide range of experiences and would have the know how and technology that would give me more experience that I would get while working in a local company. Question 4

My advice to companies like IBM and Cisco is to localize the majority of their inputs and to invest more in their local employees in order to have the advantage of approaching more customers. While investing more in local employees this would encourage people to buy more of the company’s products as...
tracking img