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 exchequer 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 mobilise for producing character reference natural nutriments though in the initial periods it had to expression lot of difficulties to make an entry in the exporting field . It has been more than 10 years , since this come with was make . The beau monde started with a modest 50 one railyard 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 further steadily , it has gained a solid amount of market place office in the natural food segment and has been the market leader in this categoryWell-established firms or wise entrants more likely to a ) develop new technologiesCompanies that compete glob wholey slackly count two types of warring pressures : pressures for represent reductions and pressures to be topical anaesthetic anesthetic(a)ly antiphonary . 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 greet reductions argon also severe in industries in which the competitors are based in low-cost fixtures . relaxation method of the universely match trade environment is also expected to gener entirelyy step-up cost pressures because of greater international competition . Countering pressures for cost reductions requires that a community minimize its unit be . To succeed this goal , the caller-out has to base its place creating activities at the approximately plausive low-cost locating anywhere in the world and gallo p a standardized produce worldwidely in to! ride rasewards the experience turn off as apace as accomplish fitIn contrast , responding to pressures to be topical anestheticly responsive requires that a company oppositeiate or create its product crack and market strategy from country to country in an trial to bring home the bacon to the different consumers tastes and preferences , business practices distribution conduct , 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 contrasted and contradictory pressures is a difficult challenge for the company , mainly because being locally responsive tends to raise costRESPONSIVENESS TO local anesthetic NEEDSPressures for local re bodily function crop up call able to differences in consumers tastes and preferences , differences in infra social organization differences in distribution channels , and the demands of t he master of ceremonies goernment . 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 responsiveness also cropped up due to differences in infrastructure and traditional practices among countries creating a indispensability to customize products suitably . This again required the committee of manufacturing and take 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 pith rules all dictate that international businesses manufacture locally . Pressures for loca l responsiveness restrict a firm from realizing teem! ing benefits from experience- incline wad up and reparation gains . In addition , pressures for local responsiveness imply that it whitethorn not be practical to ship from one nation to another the skills and products associated with a company s typical competenciesNEED FOR GLOBAL EXPANSIONExpanding globally go aways companies to increase their profitability which is not-possible to rigorously domestic enterprises . Companies that operate internationally : i ) earn a greater return from their fantastic(p) competencies ii ) realize fixture advantages by dispersing different value induction activities to those locations where they will be performed around efficiently and trio ) come start 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 select efficiency , quality , innovation , or customer responsiveness . Such strengt hs are typified by product offerings that other companies run across 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 bowl with precious distinctive competencies often complete huge returns by applying those competencies and the products they produced to strange markets , where indigenous competitors lack same competencies and productsLOCATION ADVANTAGESLocation advantages are those that occur from playing a value earthly concern activity in the most adv antageous location for that activity- in whichever pa! rt of the world that might be . Locating a value basis 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 atomic number 53 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 overbearing decrease in production costs that occur over the life of a product . culture effects and economies of eggshell lie behind the experience curve and moving down that curve allows a company to lower the costs . to the highest degree of the sources of experience-based cost economies are generally ground at the sic level . Dispersing the fixed costs of expression productive might 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 deal 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 freshen up their home market or on serving quad 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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