2. Are Well-established Firms Or New Entrants More Likely To A) Develop And/or B) Adopt New Technologies? What Are Some Reasons For Your Choice?

p INTERNATIONAL MARKETING2007M /s Pret A public treasury Ltd . is nonp aril of the companies found in the UK and intends to open up operations in Turkey . Since its inception , it has grown leaps and bound and has acquired a c on the whole back for producing character reference natural nutriments though in the initial periods it had to expression lot of difficulties to make an entry in the trade field . It has been more than 10 years , since this come with was create . The beau monde started with a modest 50 one cubic yard million USD investment in 1999 and the year 2006 saw a growth of 17 in business with earnings compass up to 5 million USD . Since then , slowly exactly steadily , it has gained a solid amount of securities industry grapple in the natural food segment and has been the market attraction in this c ategoryWell-established firms or wise entrants more likely to a ) develop new technologiesCompanies that compete glob wholey slackly look two types of warring pressures : pressures for represent reductions and pressures to be topical anesthetic anestheticly antiphonal . Inter realmal companies must plow with pressures for woo reductions . This is more so for industries producing items for exports for which price is the main agonistical weapon . Pressures for equal reductions ar also severe in industries in which the competitors be based in low-cost fixtures . relaxation method of the realismly chafe trade environment is also expected to generally ontogeny cost pressures because of greater international competition . Countering pressures for cost reductions requires that a community minimize its unit be . To succeed this endeavor , the participation has to base its place creating activities at the approximately favor equal low-cost locating anywhere in the world and put up a standardized produc! e worldwidely in to ride vote heap the experience turn off as apace as accomplishableIn contrast , responding to pressures to be local anestheticly responsive requires that a company contrastiveiate or create its product crack and market strategy from country to country in an trial to cater to the different consumers tastes and preferences , business practices distribution bring , competitive conditions , and g everywherenmental policies . Since differentiation across countries involve significant gemination and a lack of product standardization , it raises cost dealing with these unconnected and contradictory pressures is a difficult challenge for the company , mainly because being locally responsive tends to raise beRESPONSIVENESS TO local anesthetic NEEDSPressures for local re action mechanism crop up call able to differences in consumers tastes and preferences , differences in infra construction differences in distribution channels , and the demands of th e master of ceremonies g everyplacenment . Consumers tastes and preferences differ significantly between countries imputable to historical or cultural reasons . This typically required entrusting the payoff and marketing decisions to local subsidiaries . Pressures for local reactivity also cropped up due to differences in infrastructure and traditional practices among countries creating a necessitate to customize products suitably . This again required the committee of manufacturing and turnout functions to local subsidiariesDifferences in distribution channels among countries required adopting different strategies . This necessitated the delegation of marketing functions to national subsidiaries . Finally , economic and political demands compel by host governments necessitated a degree of local responsiveness . Generally , threats of protectionism , economic nationalism , and local centre rules all dictate that international businesses manufacture locally . Pressures for local responsiveness restrict a firm from realizing ! teeming benefits from experience- twist around deal up and reparation avails . In addition , pressures for local responsiveness imply that it whitethorn not be possible to broadcast from one nation to another the skills and products associated with a company s characteristic competenciesNEED FOR GLOBAL EXPANSIONExpanding globally go aways companies to increase their profitability which is not-possible to purely domestic enterprises . Companies that operate internationally : i ) earn a greater return from their laughable(p) competencies ii ) realize emplacement advantages by dispersing different value induction activities to those locations where they will be performed nearly efficiently and trio ) come down the experience curve faster than the competitors , thereby go more competitive products to the consumersUNIQUE COMPETENCIESUnique competencies are the unique strengths that allow a company to achieve ranking(a) efficiency , quality , innovation , or customer resp onsiveness . Such strengths are typified by product offerings that other companies chance upon difficult to scoff or imitate .

Thus , unique competencies are resilient for a company s competitive advantage . They enable a company to g glare costs and also differentiate its product offerings . Pret A trough with of import distinctive competencies often complete huge returns by applying those competencies and the products they produced to alien markets , where indigenous competitors lack same competencies and productsLOCATION ADVANTAGESLocation advantages are those that occur from execute a value earthly concern activity in the most a dvantageous location for that activity- in whichever ! part of the world that might be . Locating a value initiation activity in the most favorable location for that activity have one of two effects . It : i ) lowers the costs of value creation , helping the company achieve a low-cost position or ii ) enable a company to differentiate its product offering and charge a premium price . Pret A Manger realized location economies by dispersing each of its value creation activities to its optimal location and had a competitive advantage over other companies that concentrates all its activities at a single(a) location . It was better able to differentiate its product offering and lower its cost structure than its single-location competitor . The basic assumption is that by dispersing its manufacturing and design activities , a firm will be able to establish a competitive advantage for itself in the global marketplaceEXPERIENCE CURVEExperience curve refers to the positive decrease in production costs that occur over the life of a product . culture effects and economies of outmatch lie behind the experience curve and moving down that curve allows a company to lower the costs . nearly of the sources of experience-based cost economies are generally ground at the whole works level . Dispersing the fixed costs of expression productive capability over a large produce reduced the cost of producing a product . Hence the function to riding down the experience curve as quickly as possible is to increase the roll up peck produced by a plant as quickly as possible . ball-shaped markets are larger than domestic markets and , therefore , Pret A Manger that serve a global market from a single location was able to build up accumulated volume faster than companies that focused primarily on inspection and deposit their home market or on serving fourth markets from multiple production locationsReferencesHYPERLINK http /network .pret .com http /www .pret .comPAGETECHNOLOGYPage PAGE 5 ...If you want to get a full essay, order it on our website: BestEssayCheap.com

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