Conditions for Becoming a Strong Competitive Force Essay (Critical Writing)

Exclusively available on Available only on IvyPanda® Made by Human No AI

Three Conditions for a Potential Entry to Meet to Become a Strong Competitive Force: Examples and Observations

Creating a strategy that will help survive in the environment of the global economy is a challenge that modern organizations need to complete to attract customers and become profitable. Although there is no recipe for success and each case of building a business company is unique, there are several essential principles that an organization must follow to become a competitive force in the context of the global market. Particularly, the identification and the further development of a unique competitive advantage, the creation of a strong and efficient risk management approach, and the introduction of a cost-efficient strategy of resources management must be viewed as the building blocks for success.

The issue of risk management should, perhaps, be the focus of a company’s endeavors when entering the target market. In light of the increasingly high competition rates and the strong effect that numerous negative factors have on SMEs in the global economy, one must elaborate on the means of mitigating the existing risks. For instance, the financial liabilities must be managed successfully, which means that an organization might need the support of a partner. Furthermore, the risks related to the technological aspects of the production and the communication processes need to be mentioned. The lack of certainty about the time and money required to address the problems identified above is typically the greatest concern of SMEs entering the target environment (Thompson, Strickland, & Gamble, 2015). Therefore, a risk mitigation approach must be crafted before becoming a part of the global market.

As stressed above, the financial obstacles are among the primary concerns that a company is likely to face when attempting at becoming a part of a specific market, let alone the global one. Therefore, a cost-efficient strategy that will help allocate the available resources most efficiently needs to be considered. For example, Tesla, which produces electric vehicles, often mentions that the use of a cost-efficient approach allows it to maintain a strong position in the EV market despite the increasingly high competition rates: “They are also trying to reduce costs by eliminating the middle man — the car dealers — but this has met with fierce political opposition in some states” (Kam, 2014, para. 12). As a result, the price for the end product can be reduced, which makes the company a better choice compared to other organizations offering the same product.

Finally, the significance of a unique competitive advantage must be mentioned as the area that a company must concentrate on to gain a strong position in the target environment. As soon as a firm introduces the type of services or products that no other organization can offer to the target members of the population, the chances for the company to gain success rise. For example, the high quality of the product and the reward cards offered to the clients are used actively by Starbucks, therefore, making it easily recognizable and preferable to other organizations producing coffee (Sustained competitive advantage of Starbucks, 2013).

Creating premises for SMEs to evolve in the context of the global economy are not very numerous – typically, they include creating a competitive advantage, working on a cost-efficient strategy, and addressing risks successfully. As long as a firm designs the approaches that help it navigate the realm of the target market, it is likely to take its niche in the industry rather fast. Although unique characteristics of entrepreneurship are to be taken into account as well, the three concepts listed above can be viewed as the basis for operating in the target environment.

References

Kam, K. (2014). Forbes. Web.

(2013). Web.

Thompson, A., Strickland, A. J., & Gamble, J. (2015). Crafting and executing strategy: Concepts and readings (20th ed.). New York, NY: McGraw-Hill Education.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2020, July 31). Conditions for Becoming a Strong Competitive Force. https://ivypanda.com/essays/conditions-for-becoming-a-strong-competitive-force/

Work Cited

"Conditions for Becoming a Strong Competitive Force." IvyPanda, 31 July 2020, ivypanda.com/essays/conditions-for-becoming-a-strong-competitive-force/.

References

IvyPanda. (2020) 'Conditions for Becoming a Strong Competitive Force'. 31 July.

References

IvyPanda. 2020. "Conditions for Becoming a Strong Competitive Force." July 31, 2020. https://ivypanda.com/essays/conditions-for-becoming-a-strong-competitive-force/.

1. IvyPanda. "Conditions for Becoming a Strong Competitive Force." July 31, 2020. https://ivypanda.com/essays/conditions-for-becoming-a-strong-competitive-force/.


Bibliography


IvyPanda. "Conditions for Becoming a Strong Competitive Force." July 31, 2020. https://ivypanda.com/essays/conditions-for-becoming-a-strong-competitive-force/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1