In fact, Dunning and Rugman did an additional extension to Porter’s Diamond framework. However, they do not have enough supporting document to prove that Diamond framework should not be use in the nations. Although Porter’s framework is widely used as a guideline for the nations, but it is not reliable for long-term usage as it does not sustain long-term competitiveness for the national business system. According to research, Porter’s diamond framework can only be used in mature and manufacturing economy as for those economy that are yet to mature they are not recommended to use diamond framework. Furthermore, double-diamond theory is more useful and suitable for smaller export dependent such as Korea and Singapore as well as China.
When an individual's personal goals are at stake and are not aligned with the organization goals there can be situation of conflict between individual and organization and the individual may had to fight for his personal goals, creating a conflict situation that will hamper success of the project (Janie Sullivan). Another conflict that according to my experience can happen in the organization is of not having Enough Resources. Resource scarcity, time and material can cause teams to undercut, leading to conflict between departments or other work groups. Valuable resources need to be protected, as well as distributed fairly among all the groups. Starting out a project with a clear picture of the resources available will help waylay some of this conflict.
When a firm has a larger output, the firm is also hard to manage and this brings extra costs. Eventually, when the firm has reached a certain size, these extra costs will outweigh the marginal benefits and thus there are no cost benefits anymore (The Economist, 2008). Economies of scale can be internal or external: internal economies of scale are cost advantages for the specific firm, regardless of the industry it operates in. External economies of scale are economies that are beneficial because of the industry a firm operates in (The Economist, 2008). In the fashion industry, brands like Zara, focus on economies of scale for internal production activities that are cost advantageous (Christopher, Lowson & Peck,
Having a global strategy does not mean that a company should serve the entire globe. Critical choices include deciding where to spend resources and where to hang back. The usual approach is to start by picking regions and then countries within them. Market data might be more readily available in situations where the firm is grouping markets according to existing structures and frameworks. If a global company such as Apple sells their product for a high price in a low-income country, they are most likely going to expect little to no sales at all due to the country’s usual price ranges for that specific product/service.
Customers do not want to switch to purchase different brands, as such they hold some bargaining power to drive the demand. In the luxury industry, it is possible that existing companies or new designers could enter internationally. However, the brand positioning serve as a serious barrier to create awareness due to customer loyalty and acceptability of the brand. In this case, threat of new entrants is relatively low. Luxury products are not easily substitute as it is not an ordinary goods but the threat can derive from imitation.
An example of demographic segmentation is being used in the automobile market. This is done on the basis of income from a household. Suzuki has a low-price bracket for their cars whereas BMW have a high price bracket so it targets high end buyers who are willing to spend more money. BMW have segmented a market by differentiating their products. Comparing it to Suzuki, BMW allow customers to design their car such as the seat material, colour, wheels and engine.
For example, a person achieves with a goal of making the world a better place can go for a hybrid instead of petrol or diesel versions. Behavioural segmentation Lastly, another segmentation is Behavioural. Behavioural segmentation divides buyers into groups based on their information, manner or loyalty. For example, people who have a successful career and wants a modern car and for the most of the individual that purchase a BMW for its distinctive reasons such as quality and value for
This seems quite odd as the concept of luxury is tied to rarity and exclusivity. This has put a question mark on the sustainability in the growth of Louis Vuitton, for how long it will be maintained. But it is to be noted that the growth in revenue due to more
The bad cars is sold at low price and good cars are sold at high price, private institutions provide information to the buyers about quality of products. Dependent variable Certified Pre-owned (CPO) and independent variable is Maintenance expenditure ¢ A model of the used car market with lemons and leasing This article was published in the year 2010 by the author Arif Sultan explains the kim's model of used car market to analyse the possible impacts of leasing and CPO, this both criteria have improved the information mechanism between the buyer and seller of used cars which also improves the adverse selection of traded used cars in the market. Dependent variables used car market and independent variable are maintenance level , quality of used cars. ¢ Best car rental companies This paper focuses on author latin trade in the year 2012, Dollar/Tlirifty which is a car rental company in latin America which is ranked highest. The rental companies are benefited from the economic growth but many travelers still don't prefer renting a car because they prefer to be driven by the colleagues driver or to hire a driver instead of renting.
• Company can work on to decrease the Lead time at Development Process. • Company can use the Lean Process/Six Sigma. • Company can work on to increase the communication, interaction b/w the different suppliers & departments etc. • By working on the above points and implementing them BMW shall have lesser issues with respect to the new prototypes. • It shall help to maintain consistency at quality & lesser customer complaints.