On this issue Barclays bank opts the latter, it ensures that its banking services are different and they meet the tastes and preferences of respective clients in each country. b) Whether to employ the essentially the same basic competitive strategy in all countries or modify the strategy country by country. Barclays has opted to employ a unique competitive strategy in each country but in line with the group’s mission and vision. c) Whether to locate the company’s production facilities, distribution centres, and customers service operations to realize the greatest location-related advantages d) How to efficiently transfer the company’s resource strengths and capabilities from one country to another in an effort to secure competitive advantage. It is due to the process of exploring these issues that concepts such as multicountry competition, global competition, and profit sanctuaries are introduced.
Multicountry competition occurs when competition in one state market is not closely associated to competition in another state market. There is no global or world market, just a collection of self-contained country markets. Global competition exists when competitive conditions across national markets are linked strongly enough to form a true international market and when leading competitor compete head in many different countries (Johnson & Scholes 2005).
Strategy options for establishing a competitive presence in foreign markets. There are five ways in which a company can establish a competitive presence in a foreign market: 1. Retain a national (one-state) creation base and export goods to overseas market. 2. License foreign firms to use the company’s technology or to produce and distribute the company’s product. 3. Employ a franchising strategy in foreign markets. 4. Rely upon acquisitions or internal start-up ventures to gain entry into foreign markets. 5.
Rely on strategic alliance or joint venture with foreign companies as the primary vehicle for entering foreign markets. The strategy employed at Barclays to enter any foreign country is via an internal start-up since it was easy to build a new business subsidiary from scratch as it has a number of companies in almost all the continents of the globe. It has also the necessary resources and competencies to rapidly equip a new subsidiary it the personnel and capabilities it needs to compete successfully and profitably. Localisation Barclays bank has adopted a localised strategy to thrive in the international market.
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