1. Choose a product that you feel is perfect for a global launch, and analyze the corporate strategy being employed as it relates to global expansion. Can you achieve competitive advantage? If so, how? Briefly discuss why Absolute advantage is no longer possible.
Samsungs Bendable Phone
In an effort its freefall, Samsung has decided to come up with a gadget that has never been heard of or at least made into a product. To facilitate its return to glory, therefore, the South Korean based multinational has come up with a bendable phone. According to Samsung market specialists; this product is more likely to enhance the companys product competitiveness now more than ever. In this new gadget, the company has used new technology and materials such as flexible displays and metal frames, which are meant to set its device apart from all the rest (Huitema, 2012, p. 7). However, this does not necessarily mean that Samsung will be scrapping devices, which already exist in its pipeline. It will have to think strategically to make sure that this new product is differentiated from all price points.
With this new gadget, Samsung needs to be careful if it is still intent on maintaining the competitive edge in the industry. Samsung has been known to provide a wide range of devices to appeal to all its consumers preferences. As a result, its products come in all kinds of screen sizes and prices. A strategy, which has undoubtedly made it the biggest mobile phone seller worldwide (Bohn, O'brien, & Fruhauf, 2014, p.23). Nevertheless, it has gone a little bit overboard with this strategy. There is a difference between meeting consumer specifications and making them confused, about which is which in their wide range of smart phones. For instance, take the Samsung S5. The company not only offers a notable size, it also five other variants of the same product. There is the Galaxy S5 Active, the Galaxy S5 Sport, the Galaxy K Zoom, and The cheaper Galaxy S5 Mini. In addition, there is the Galaxy S5 LTE-Advanced, which is for higher internet speeds. Getting rid of some variants in the new gadget will serve it well. Otherwise, customers will not miss the phone after the first year.
Samsung has always prided itself with having the ability to quickly roll out products. However, if it is to ensure its new phone has a comparative advantage both in terms of unique features and in terms of quality, it should move fast without any sort of panic. When Samsung came up with its first smart watch, the Galaxy Gear, it brought it together in one year. Apple, on the other hand, spent three years working on its model of a smart watch, named the Apple watch. It was only until last year that the phone was on sale.
Samsung later admitted that it had delay difficulties when responding to upcoming low-cost sellers within China and other new markets. These kinds of delays have shown that absolute advantage is no longer possible. Over the years, Samsung has learnt that the sluggishness of a giant company can cost its market since Samsung itself benefited from the slow methods of Blackberry, Nokia, and Motorola. In this new discovery, Samsung needs to learn that it needs to act quick and reasonably or else its actions could bear no fruit.
2. Choose one of the countries listed below as a host nation to make the argument that the socioeconomic advantages outweigh the disadvantages of international trade.
South Africa is a well-developed country. In fact, it is the only country in Africa that has been able to compete on a global scale throughout the past years. However, it is important to note that its current state of affairs as regards to development is heavily attributed to the apartheid rule during the 80s and early 90s. This however did not stop the country from being able to self sustain itself since by then, many of its privileged citizens had acquired the needed education to lead the country once the Europeans left. On top of that, the head of state was a spirited man who had the best goals in mind and the peoples best interests at heart. To ensure the continued growth of South Africa, Mandela did not possess any grudges against the white men who had terrorised his country for all those years. He was however very interested in working with them to ensure the well-being of his fellow nationals. This is one of the ways in which he spearheaded South Africas System of self-sustenance.
To propel this self-sustenance strategy, the country has been able to adopt a system of the social economy or what is now referred to as a solidarity economy in Latin America. This kind of development strategy uses a non-profit or third sector organization plan. Their rapid growth has created many employment opportunities for South Africans and as a result, there has been significant community building within poverty-stricken areas in the country (Razavi, & Staab, 2012, p. 9). South Africas social economic sector is carefully monitored hence there has been a creation of sub-sectors within the sector. It currently consists of the private sector, the public sector, the social economy, and the informal economy. The social economy is, however, sub-divided into three sub-sectors comprising the community sector, the voluntary sector, and the social enterprise sector.
Looking at the advantages brought about by the social economy organizations, one cannot help but marvel since they contain common characteristics compared to international trade organizations. The advantages include:
- The continued provision of services to groups of people that are not easy to reach.
- The organizations promote and attract charitable donations
- The system creates an effective way through which social capital can be raised
- The organizations are established close to their customers hence they are able to respond quickly to their needs.
- The principle also promotes co-operation and solidarity, mutuality, and equal opportunities.
- There is sustainable development, which comes along with social and economic inclusion.
Unlike the international trade, the social economy develops at a steady rate because of a need to discover new and innovative solutions to issues that affect citizens of the country, be it socially, economically, or environmentally based. In addition, they try to cater for those needs, which have not been adequately satisfied by both the private and public sectors.
Bohn, D. D., O'brien, P. M., & Fruhauf, C. B. (2014). U.S. Patent No. 8,804,324. Washington, DC: U.S. Patent and Trademark Office.
Huitema, E. (2012). The future of displays is foldable. Information Display28, 6-10.
Razavi, S., & Staab, S. (2012). Global variations in the political and social economy of care: worlds apart (Vol. 8). Routledge.
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