General management questions

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Business Finance

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  1. Describe standardization, format wars, and how standardization can lead to a format war.
  2. Once standardization occurs, how does the industry benefit?
  3. During a format war, describe how competition occurs and how a price war can take shape.
  4. Define first and second movers. How do these two entities interact within and industry, and who learns what as the industry takes shape
  5. Why do companies go global? Once a company has decided to go global what entry modes could the company leverage to break in to the global market?
  6. What additional benefits from economies of scale does a company receive from going global?
  7. Describe the main strategies available to an organization going global. Describe why each strategy may be chosen.
  8. What are the advantages and disadvantages of the different entry modes a company can use to break in to the global market?
  1. Who makes strategies at the corporate level, and how is this strategy made? How would an organization with a multi-business model form their strategies? What would they target?
  2. Why would a company leverage horizontal integration as a strategy? What are the advantages and disadvantages?
  3. Why would a company leverage vertical integration as a strategy? What are the advantages and disadvantages?
  4. What is strategic outsourcing? Describe why a company would explore this as an alternative to vertical integration, as well as any potential advantages.

  1. Why do companies diversify? When do companies consider diversification?
  2. Describe related and unrelated diversification, and why a company would choose one diversification method or the other.
  3. Describe what can cause diversification to fail.
  4. When seeking to enter a new industry, describe the advantages and disadvantages a company may face when exploring acquisition to enter the new industry.

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Explanation & Answer

Attached.

Running head: STRATEGIC MANAGEMENT

Strategic Management
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Institutional Affiliation

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STRATEGIC MANAGEMENT

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1. Standardization and Format Wars
In industry, standardization refers to the application and development of standards that
allow large assembly runs of constituent parts which can readily be fitted without adjustment to
other parts. This guarantees that consistent quality is delivered in order to achieve
standardization, accepted guidelines are set about the creation of products and also in regards to
how a business is run. According to Wharton (2018), competition for domination in the market
between producers of a given mode of technology mostly for survival is referred to as a format
war. The eruption of format wars regularly occurs in cases where a couple of industries make
technologies which are known to be non-interoperable proprietary. The purpose of format wars is
to make a fragmentation in the market and to hamper industrial evolution.
2. How Standardization Can Lead to a Format War
Standards can accelerate Format Wars. A well designed and established standard
significantly heightens approval of new technology. The reasons behind this are the decision of
the market to encourage a one content format. This, in turn, encourages acceptance of innovation
by manufacturers and also content providers who actively turn to the introduced platforms
leading to a format war (Bilger et al., 2006).
3. How the Industry Benefits from Standardization
Standardization assists industries in proceeding on scientific lines to identify aspects that
influences control programs to achieve economy on parts and materials in order to disposal and
wastage of unwanted shops. According to Wharton, (2013), industries that participate in
successful policy planning have a higher chance to make products to meet the needs of a variety
of markets and customers. It also cuts development time and cost where assembly advances

STRATEGIC MANAGEMENT

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made for a particular model are not to be tested and developed for other models. Standardization
helps in lowering investment risk needed for every product made.
4. How competition occurs and how a price in war can take shape during a format war
Platforms uncover interfaces in which an assembly of third-party solutions and
components are built. These platforms create an environment for independent merchants to sell
customized solutions and add-ons whereby each component on its own takes minimal end-user
value (Bilger et al., 2006). For instance, to spend on a platform, consumers have hope that it will
last and it is viable.
5. First and Second Movers
A first mover refers to a company or an individual who makes inroads first in a market
who has an advantage over his competitor as because he gains returns early on, whereas a second
mover enters a market after the first mover has been in the market. The second mover has an
advantage over ...


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