Part A
1. Adaptation
Refering to the case study(car industry)
Write how adaptation works in this case study and discuss the variants of adapation
that are applicable. design, variation, focus: reduce need for adaptation,
externalization: reduce burden of adaptation, Innovation: improve on existing
adaptation
(de Kluyver, 2014)
Adaptation—creating global value by changing one or more elements of a company’s offer to meet local
requirements or preferences—is probably the most widely used global strategy.
(de Kluyver, 2014)
BMW to double number of models built in China
17 Jul, 12:31 PM
German top-of-the-range carmaker BMW said Wednesday it will increase the number
of models it builds in China from three to six in the coming years to meet growing
demand.
BMW currently produces three models in China, the BMW 5 Series sedan, the BMW 3
Series sedan and the BMW X1.
However, "we are strengthening our focus on meeting the needs and aspirations of
our Chinese customers," said board member Friedrich Eichiner.
"This is why we are going to produce even more models specially tailored to the
Chinese market. We are going to double our range of locally produced models in the
future -- from three to six," Eichiner said.
The new models will include "a completely new entry model below the 3 Series" and a
variant of the BMW X3 specifically developed for and produced in China.
http://www.businessspectator.com.au/news/2014/7/17/china/bmw-double-number-m
odels-built-china 18 July 2014
Part B
2. Write how aggregation works in this case study and discuss the variants of
aggregation that are applicable cultural, geographic, administrative and
economic.
Aggregation strategies focus on achieving economies of scale or scope by creating
regional or global efficiencies; they typically involve standardizing a significant portion of
the value proposition and grouping together development and production processes."
(de Kluyver, 2014)
Motorola tops Nokia phone shipments in India in Q2
03 August, 2014
Analysts company Canalys has outed a report outlining the top smartphone
manufacturers in India and it comes with a twist. For the Q2 2014, Motorola has sold
more smartphones than Nokia (Microsoft Mobile) taking the fourth place and leaving
the Finns at fifth.
… The reason Motorola (now owned by Lenovo) tipped the scales in its favor is
called the Moto G. The affordable smartphone made a splash in India, as well as the
even more aggressively priced Moto E. Motorola recently slashed the price of the
Moto G by INR2,000 ($32/€24) since competitors like Xiaomi's Mi 3 and Asus'
ZenFone 5 offered better specs at more competitive prices. (Gsmarena, 2014)
Gsmarena, (2014),
http://www.gsmarena.com/motorola_tops_nokia_smartphones_shipments_in_india_i
n_q2_2014-news-9219.php 4 Aug 2014
3. Market entry strategy

Entry licensing

Manufacturing industry

Consumer goods

Type of entry strategy for industries
Market Entry
There are a variety of ways in which a company can enter a foreign market. No one market
entry strategy works for all international markets. Direct exporting may be the most
appropriate strategy in one market while in another you may need to set up a joint venture
and in another you may well license your manufacturing. There will be a number of factors
that will influence your choice of strategy, including, but not limited to, tariff rates, the degree
of adaptation of your product required, marketing and transportation costs. While these
factors may well increase your costs it is expected the increase in sales will offset these costs.
The following strategies are the main entry options open to you.
Direct Exporting
Direct exporting is selling directly into the market you have chosen using in the first instance
your own resources. Many companies, once they have established a sales program turn to
agents and/or distributors to represent them further in that market. Agents and distributors
work closely with you in representing your interests. They become the face of your company
and thus it is important that your choice of agents and distributors is handled in much the
same way you would hire a key staff person. (Tradestart, 2014)
Tradestart, (2014), http://www.tradestart.ca/market-entry-strategies 17 Sep 2014
4. How is that company using sustainable comepetive advantages
Now, Columbia Business School professor and globally recognized strategy expert Rita Gunther
McGrath argues that it’s time to go beyond the very concept of sustainable competitive advantage.
Instead, organizations need to forge a new path to winning: capturing opportunities fast, exploiting
them decisively, and moving on even before they are exhausted. She shows how to do this with a
new set of practices based on the notion of transient competitive advantage. (Amazon, 2013)
http://www.amazon.com/The-End-Competitive-Advantage-Strategy/dp/1422172813
9 Dec 2013
5. Business strategy in watch industry Swiss vs Apple watch

What Swiss do to combat Apple / tech company
Apple v/s swiss watch
how swiss manufacturing change their business model to survive in todays generation.
What Do The World's Top Watchmakers Think of Apple Watch?
… Watch manufacturers and retailers in the Alpine country have been enjoying a remarkable
boom in recent years, as sales of timepieces with price tags running to tens of thousands of dollars
have surged. The industry has reported rising exports, collectively reaching 21.8 billion Swiss
francs ($23.3 billion) in 2013.
A Rolex, left, and the new Apple Watch. Left: Patrick T. Fallon/Bloomberg, right:
Reuters/Stephen Lam
Still, the Apple Watch, which has been forecast to sell up to 30 million units in its first year of
availability, has promised the biggest upheaval the Swiss industry has faced since competition
from cheaper Japanese quartz watches brought it to its knees in the 1970s.
6. Robotics instead of manual labor which industries

Car

Airlines
The rise of robotics will thin out the
middle class Callam Pickering
According to Autor, machines have a clear comparative advantage in tasks that
are routine. Tasks that are repetitive and easily coded are technology’s bread and
butter.
By comparison, humans tend to excel at tasks that require problem-solving,
flexibility and creativity. We also have a comparative advantage in manual
labour.
… In practical terms, humans tend to be relative better at performing jobs at the
top and bottom of the income distribution. Furthermore, new technology has
enhanced productivity for some roles at the top end of the distribution,
particularly for professional, managerial or technical positions.
Pickering C. (2014)
Pickering C. (2014)
http://www.businessspectator.com.au/article/2014/9/2/technology/rise-robotics-will-thin-out-middle-class?utm_source
=exact&utm_medium=email&utm_content=889738&utm_campaign=kgb&modapt= 2 Sep 2014
References
Amazon, (2013), http://www.amazon.com/The-End-Competitive-Advantage-Strategy/dp/1422172813 9 Dec 2013
Autocar India, (2013),
http://www.hindustantimes.com/Autos/Latest-News/BMW-Toyota-confirm-sports-car-plans/Article1-1003283.aspx
1 Mar 2013
Business Spectator, (2014),
http://www.businessspectator.com.au/news/2014/7/17/china/bmw-double-number-models-built-china
18 July 2014
de Kluyver C. A., (2014), Fundamentals of Global Strategy, Flat World Knowledge FT,
http://www.ft.com/intl/cms/s/0/50c272c4-dce9-11e3-ba13-00144feabdc0.html#slide0
19 May 2014
Gsmarena, (2014),
http://www.gsmarena.com/motorola_tops_nokia_smartphones_shipments_in_india_in_q2_2014-news-9219.php 4
Aug 2014
Pickering C. (2014)
http://www.businessspectator.com.au/article/2014/9/2/technology/rise-robotics-will-thin-out-middle-class?utm_source
=exact&utm_medium=email&utm_content=889738&utm_campaign=kgb&modapt= 2 Sep 2014
Tradestart, (2014), http://www.tradestart.ca/market-entry-strategies
17 Sep 2014