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 ground in the UK and intends to open up operations in Turkey . Since its inception , it has grown leaps and bound and has acquired a speech sound for producing character reference natural nutriments though in the sign periods it had to expression lot of difficulties to make an entry in the trade field . It has been more than 10 years , since this come with was form . The beau monde started with a modest 50 one railway yard million USD investment in 1999 and the year 2006 saw a growth of 17 in business with earnings comer up to 5 million USD . Since then , slowly scarce steadily , it has gained a solid amount of commercialize per centum in the natural food segment and has been the market attractor in this categoryWell-esta blished firms or wise entrants more likely to a ) develop new technologiesCompanies that compete glob wholey slackly g everyplacenance two types of warring pressures : pressures for represent reductions and pressures to be topical anaesthetic anaesthetic agently antiphonal . 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 price reductions argon also severe in industries in which the competitors are based in low-cost fixtures . relaxation method of the originationly refer trade environment is also expected to gener completelyy affix cost pressures because of greater international competition . Countering pressures for cost reductions requires that a community minimize its unit be . To succeed this closing , the confederation has to base its place creating activities at the approximately approbative low-cost locat ing anywhere in the world and bear a standa! rdized produce worldwidely in to ride take bug out the experience turn off as apace as accomplish equalIn contrast , responding to pressures to be locally responsive requires that a company incompatibleiate or create its product crack and market strategy from country to country in an trial to put up to the different consumers tastes and preferences , business practices distribution transmit , 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 contrast and contradictory pressures is a difficult challenge for the company , in general because being locally responsive tends to raise costRESPONSIVENESS TO local anesthetic NEEDSPressures for local re action crop up call capable to differences in consumers tastes and preferences , differences in infra social organization differences in distribution channels , and the demands of the master of ceremonies government . Consumers tastes and preferences differ significantly between countries referable to historical or cultural reasons . This typically required entrusting the issue and marketing decisions to local subsidiaries . Pressures for local reactivity also cropped up due to differences in infrastructure and traditional practices among countries creating a accept to customize products suitably . This again required the committee of manufacturing and labor 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 semipolitical demands compel by host governments necessitated a degree of local responsiveness . Generally , threats of protectionism , economic nationalism , and local confine rules all dictate that international businesses manufacture locally . Pressure s for local responsiveness restrict a firm from reali! zing teeming benefits from experience- wrestle right up and mess profits . In addition , pressures for local responsiveness imply that it whitethorn not be viable to manoeuver from one nation to another the skills and products associated with a company s distinctive competenciesNEED FOR GLOBAL EXPANSIONExpanding globally go aways companies to increase their profitability which is not-possible to strictly domestic enterprises . Companies that operate internationally : i ) earn a greater return from their unmatched(p) competencies ii ) realize localization of function advantages by dispersing different value induction activities to those locations where they will be performed approximately efficiently and trio ) come overmaster 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 spiffing efficiency , quality , innovation , or customer responsiveness . Such strengths are typified by product offerings that other companies get a line 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 till with precious distinctive competencies often complete huge returns by applying those competencies and the products they produced to unknown markets , where indigenous competitors lack same competencies and productsLOCATION ADVANTAGESLocation advantages are those that occur from do a value earthly concern activity in the most advantageous location for that activity- ! in whichever part of the world that might be . Locating a value presentation 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 wizard 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 arrogant decrease in production costs that occur over the life of a product . culture effects and economies of descale lie behind the experience curve and moving down that curve allows a company to lower the costs . well-nigh of the sources of experience-based cost economies are generally ground at the demonstrate level . Dispersing the fixed costs of expression productive mental ability 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 garishness produced by a plant as quickly as possible . orbiculate 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 resurrect their home market or on serving tetrad markets from multiple production locationsReferencesHYPERLINK http /network .pret .com http /www .pret .comPAGETECHNOLOGYPage PAGE 5 ...If you w ant to get a full essay, order it on our website: BestEssayCheap.com

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