Case Study Foreign Direct Investment Essay Example | Topics and Well Written Essays - 3000 words

theme Study Foreign Direct Investment - Essay ExampleContinuous growing is essential for attach tos survival in the interest of its investors and work force. Hence, this reports addresses strategy development perpetrations in this regard. The idea of growth should be one of the business objectives. The company needs to engage in strategy development so as to create militant favor over its competitors. The strategy development is important as it should be difficult for the competitors to replicate. Collaboration with business partners or the stake holders such as the companys suppliers, distributors and customers is a guarantee creating a competitive advantage which the competitors cannot easily emulate (Campbel, Stonehouse, & Houston, 2002) Different strategies to achieve competitive advantage are 1) knowledge-based strategy, 2) generic strategy 3) hybrid strategy and 4) core competence/distinctive capability/resource-based strategy. Organizations by and large will select one o f the strategies and incorporate value-adding activities in support of the strategy selected. These strategies are briefly explained (Campbel, Stonehouse, & Houston, 2002). ... mum knowledge is that which cannot be stored being mostly of individual experiences of experts. This is also not possible to be copied by the competitors (Demarest, 1997). There should be at least three types of knowledge available within firms. They are know-how, know-why and know-what referring to pragmatical knowledge, theoretical knowledge and strategic knowledge respectively. All these combine to form core competencies of a firm. generic strategies are the well known Michael Porters generic strategy frame work that explains the competitive advantage of a firm. (Campbel, Stonehouse, & Houston, 2002). Hybrid strategy is the combination of knowledge strategy and generic strategy. Lastly, the core might strategy which is nothing but the essence of the firms vast experience in the tradional operation the firm has been engaged in. Ansoffs matrix will also serve to give the proper direction for the company s future activity. In view of the saturated market in Europe, the only counseling out for XYZ Plc is to seek greener pastures abroad. Developing countries are the niche market for automobiles because the globalization has improved the standard of brio for the people therein resulting in creation of demand for automobiles. Markets for automobiles in these countries has not yet saturated. These countries are harming not only within the context of domestic market for automobiles but also the savings in wages by almost 65 per cent. The countries offering huge opportunities for investment are China and India, the cosmoss two largest populated countries. Foreign Direct Investment (FDI) These countries have benefited a lot from the private FDI flowing in continuously. India especially has survived the economic crisis that