Free «Motivational Speaker Addition» Essay Sample

This essay surveys how the Harvard Business Review defines strategy, compares the business challenges that differentiate domestic and foreign business and the competitive environment that either of these face. A case study of a successful application of strategy in a market that is largely considered to be mature and impenetrable has also been considered and the concept explored.

Motivational Speaker Addition

International and domestic competitions are to completely different things to a firm. The strategy needed by a firm to succeed in foreign markets is also very different to those needed for its success in domestic markets. This essay looks at a review by Porter in the Harvard Business Review (1996) concerning international business strategy.

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Difference of Achieving Competitive Advantage in

International and Domestic Markets

International competitive environment requires greater levels of decision making and involves higher risks (Porter, 1996).  Organizations aiming to tap from the international and multinational businesses have to consider legal challenges that may subsidize local competitors such that the host country business benefit from tax cuts when international companies face heavy tax cuts and rigorous trade regulations that interfere with free flow of trade. In some international markets, business and culture are weaved more closely and therefore having the logistics in place to ensure that business blends in with domestic market trends can boost business profitability and success (Porter, 1996).

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In domestic markets, most trade regulations favor local business, this is a major advantage for domestic markers and therefore a multinational organization can opt to enter protected markets by investing together with a focused domestic partner. Most governments allow certain percentage of foreign and local owned companies to be considered local corporations that can benefit from domestic market subsidies. Achieving competitive advantage is mainly achieved by gaining advantage leverage over the competitors by using domestic market regulations. Labor control measures can pose a great threat to international business ability to penetrate domestic markets. Therefore a firm can position itself for international competitive advantage by consulting with domestic laws and make appropriate chain supply consultations to maintain enough flow of affect raw materials, cheaper power and skilled labor.  

Strategic Positioning International Competitive Advantage

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Many international businesses venturing into international markets are often faced with a choice of what phase of their business they will have to provide in their new territories. This is determined by the nature of the existing competition, government regulations concerning some sectors of the industry and the labor policy factors that can disrupt adjustment to domestic market environments. Consequently, before international organizations enter a domestic market territory it is advisable to study the strengths, weaknesses, opportunities and threats of the local market to establish the main competitors and find about factors that can favor international investment. Besides local authority rules and regulations of conducting business ought to be known and observed to avoid breach of laws leading to unnecessary torts. 

CarMax Successful Use of Strategy in Second Hand Car Market

According to the Harvard Business Review, strategic competition is the process of perceiving new positions that woo customers from established positions. An example of a successful international strategy is by CarMax, a second hand car dealer that refurbishes second hand cars, provides guarantees, and provides stable prices. This unique strategy has made the used car dealer have a huge advantage over other car dealers in the business both internationally and domestically, in its home country US. 


For a business to achieve international business success, visionary leadership must be provide means of analyzing both domestic and international market so that every resource is used to make the customer more willing to buy because of associated functionality. Long term and short terms business strategic plans must meet the regal requirements of every domesticated business environment. To gain a more favorable competitive advantage, an organizations needs to invest in quality at lower prices. Further research should be done to establish the operational and labor implications the firm might have to contend with in the foreign business climates.

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