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Global Strategic Management - Case Study Example

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The author of this case study "Global Strategic Management" describes international business as the exchange of goods and services between entities in different countries. International business is enabled through globalization and international cooperation…
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Global Strategic Management
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Download file to see previous pages To thrive in international business, a firm needs to have excellent international business strategies. These strategies will determine and guide commercial transactions between firms located in different countries (Hill and Jones, 2012).
There are several theoretical models that have been advanced to explain the significance and impacts of international business strategies. The three most used ones, according to Peng (2013), are the industry-based view, the resource-based view, and the institution-based view. Depending on which model was adopted, different strategies can be arrived at by firms to gain a competitive advantage over competitors in an industry (Frynas and Mellahi, 2011). This paper examines the operations, performance, and strategies used by SolarWorld USA. It identifies the competitive forces affecting global solar energy, evaluates the resources and capabilities of SolarWorld USA, determines the institutional forces that shape the emergence and the evolution of the industry and, finally, recommend strategic measures that SolarWorld USA can implement to maximize its profitability in light of its declining global market share.
This is a view that explains that the firms in a particular industry are influenced by competitive forces in that industry (Peng, 2013). As such, the firm’s strategies will be influenced by the presence of these forces, or lack thereof. These forces were identified and identified by Porter as the bargaining power of suppliers, buyers bargaining power, threats of new entrants, rivalry among firms already in existence, and the threats posed by substitutes (Porter, 2008). Figure 1 shows how these forces interact to determine the firm’s decisions.
The global solar industry, just like any other industry, is influenced by these five forces. The bargaining power of the customers determines pricing strategies as the firms strive to provide affordable products that can sell. ...Download file to see next pagesRead More
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