Question
| Watch the video below and please respond to the following: https://cdnapisec.kaltura.com/html5/html5lib/v2.52/mwEmbedFrame.php/p/956951/uiconf_id/38102761/entry_id/1_t4omy020?wid=_956951&iframeembed=true&playerId=kaltura_player_1487730648&entry_id=1_t4omy020&flashvars[streamerType]=auto# Assuming you are the new director of the South Asia region for Dunkin Donuts (India, Pakistan, Bangladesh, Sri Lanka, Nepal and Bhutan, Afghanistan and Maldives). Select two countries from this list and recommend donut flavors that would resonate with the group. Provide rationale to support your reasoning. From the e-Activity, examine two (2) instances when multinational companies have used offensive or defensive competitive strategies. Determine the major advantages that global companies would have over domestic competitors in sustaining competitive advantage as a result of using offensive or defensive competitive strategies. |
Answer
Fencing and Maneuvering
Donuts is a type of fast food that is loved by many people around the world. In countries like America, it is a popular snack. Choosing the best donut flavors that resonate with customers’ eating culture and traditions while trying to break into a new market can be quite a difficult task. Therefore it is advisable to do a thorough market survey first before introducing a food flavor into a new market. In countries such as India and Bangladesh, donut flavors such as mango, chili flavored, saffron cream in donuts would suit very well in the Indian and Bangladesh markets. This is because the flavors are inspired by their cultural practices relating to the preparation of desserts.
An offensive competitive strategy is a corporate strategy whereby the company puts much of its investments in technology, research, and development in an effort to stay ahead of the competition in the market. For example, in the video, the Frito-Lay food industry from the US invested in research where the product researchers developed new flavors that would resonate with the traditional Chinese food and thereby break through the vast Chinese market (Cdnapisec.Kaltura.com, n.d.). This way the Frito-Lay food industry has managed to stay ahead of the competition.
A defensive strategy is a type of a marketing strategy that helps the company to retain its valuable customers. This can be done through retaining a good reputation of the company’s products. In so doing, a company can retain its strongholds and profitability and at the same time gain a strongly competitive market. For instance, in the video, a company like KFC has used competitive defensive strategy by retaining its reputation all over the world and even in the Chinese markets by producing customized products such as the spicy squid on a stick and therefore having a strong competitive advantage (Cdnapisec.Kaltura.com, n.d.).).
Global companies would have several advantages over their domestic competitors. By using the offensive and competitive defensive strategies, a global market participant will tend have more resources to conduct market research and stay ahead of the competition. Multinational companies are also better placed in terms of creating a good reputation with their customers as compared to domestic competitors because their products are well-known around the world.
References
Cdnapisec.Kaltura.com (n.d.). Strategic management in the multinational company [Video]. Retrieved January 13, 2018, from https://cdnapisec.kaltura.com/html5/html5lib/v2.52/mwEmbedFrame.php/p/956951/uiconf_id/38102761/entry_id/1_t4omy020?wid=_956951&%3Biframeembed=true&%3BplayerId=kaltura_player_1487730648&%3Bentry_id=1_t4omy020&%3Bflashvars%5BstreamerType%5D=auto#
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