The structure of demand may affect the competitiveness of firms in the international market by providing an impetus for domestic firms to produce high quality ,well designed ,reliable goods ,relative to those supplied by their foreign competitors assuming that such an emphasis on product consistency or differentiation , rather than a cost reducing. One of the most effective strategies for firms is to pursue to what content is likely to be affected, by such demand conditions. A nation’s competitive advantage is strengthened if there is strong local demand for its goods and services” (Porter). This demand provide a number of benefits, Firstly it helps seller to understand what buyers want . Secondly if change become necessary ,such as customer desire for a product to be a smaller or more efficient ,the local seller can change the product immediately. Developing international perspectives Many companies do their business in other countries, however they have not developed the need of international perspective, this requires in three areas: experience, focus and attention.
Moreover, one way to create an international perspective is to hire individuals with international experience . For example research has shown that in the USA many U. S chief executive officers have much less lack of experience compared to European and Japan companies. One of the benefits of experience is that help managers to evaluate situations, and this process is different from which used at home. Furthermore, managers mainly rely on strategic planning and humanistic aspects of international business .
A second way to develop an international business is to emphasise the importance of international activities. Unfortunately these activities are often low on a list of priorities. Consumer Tastes International trade is not only based on price, some people will pay much more for a product even though they can buy a similar product for less money. The willingness of paying more money may be based on quality and brand name. In international business strategy there is always more profits when a price goes up. Decision making
Decision making is the process of choosing from among alternatives, in international business one of the primary areas of consideration is where the ultimate decision making authority will rest on important matters. Recently research has demonstrated that decision making is vary from one country to another country or culture to culture . For example among British organizations there is a great deal of decentralized decision making. Many managers do not understand the technical nature of business operations such as financial budgeting or cost control.
Production System Production strategies do not begin with manufacturing in the past years many international companies focused on this aspect of operation these days many of them focus on production system. Production system is a group of related activities designed to create. Moreover location is an important factor because of its impact on production and distributing costs. Location is also important to service enterprises because they usually require face-to face contact with their customers. Hotels and airline is typical examples.
One of the major manufacturing challenges facing international companies is the speed with which they develop and obtain new products in the market. In recent years many firms have found that a speed to market strategy can be extremely profitable. There are a numbers if steps those international companies have taken to ensure early diversity of their products. For instance “Sun Microsoft has eliminated its new products group ,which had centralized control for production development and made the group part of the manufacturing department. Now both group work together in designing and manufacturing new products. ”(Bill Power)