Reflection Paper4 RahulKumar Devaraju Harrisburg University of Science and Technology 1. Standardization, format wars, and howstandardization can lead to a format war:Standardizationcan be described as for any such object in the world, there can be one standardso that the new objects which are designed in the future can follow the legacyobjects. The absence of standardization causes significant inefficiencies anddanger public safety so that standardization is very crucial. For example,TCP/IP is the technical standard how the data flows from physical layer toapplication layer in the networking. Format war at times called as standardwar. This format war will occur when companies will be participated in acompetition and if the conflict occurs in the process of industry standard. Forexample, the format wars in between the operating systems of the smart phones.
In this example the competition is among windows, android, and ios. In thisdispute android came to dominate the market. However, Format war is the processof trying to replace the existing technical standards will lead to a formatwar.
2. Once standardization occurs, how does theindustry benefitIndustrywill benefit by once the standardization occurs that which each company can usethat standard that leads to the benefit of cost cutting process and will gethelp from other business/company as and when needed. In my opinion I am goingto take an example of using sound technologies for most electronic gadgets asDolby. Dolby has grown up their technology and it sets a standard for noisereduction using different approaches like audio compression and expansion intape recording.
This sound technology is used not only in PC’s and it can beused in Movie theaters for the high technology surrounding sound system and itleads to benefit the industry in above ways. Now a day this is one of the most effectivelyused sound technology. (Hill, Jones, 2015, p .213.
). W3C set the standard for HTML and other few languages thatcan be used free for the web presentation by using the graphics and texts thatcan be build in the website and based on the HTML many other web applicationsare being built. Group of web professionals and companies that activelysupported W3C and the adoption of web standards. 3.
During a format war, describe how competitionoccurs and how a price war can take shape.Inmy opinion competition occurs during a format war because 4. Define first and second movers. How do thesetwo entities interact within and industry, and who learns what as the industrytakes shape?Firstmovers is the one that first one it would be involved in specific market may become out with a new technology or just create a new innovation. Second moverscan be defined as that that are building their product on the top of existingproduct/technology with taking he advantages of the flaws that can be made fromthe first mover. The two entities interact within an industry by learning fromtheir mistakes and thus create an updated and improved product design andmarket strategy which causes lower initial costs to both first movers andsecond movers. First mover may have patents on it’s technology that preventsthe second mover from reverse engineering. Both first and second movers willlearn industry takes shape based on the technology that reach to the users.
5. Why do companies go global? Once a companyhas decided to go global what entry modes could the company leverage to breakin to the global market?Companiesgo global because that companies get more profits by expanding the business,expanding the sales internationally, creating a brand, positive impact on thecommunity, providing more jobs globally. Above are few reasons why the companygo global.Exportingis one of the global entry mode that by which will give the benefit for thecompany by exporting their products internationally and sell their products.
Licensingis one of the other entry mode that company can make use of getting theminternationally. Franchising is one of the other entry mode that companies canfollow for getting profits by giving the franchise to the child companies andthereby increasing their brand globally and due to this they can expand thebusiness and attract more number of customers, Joint Ventures is one of theother key that company can tie up with the local businesses and can share theirinvestment and profits. Wholly Owned subsidiaries is one of the other entrymode which will give benefit with reliable local and global economies. 6. What additional benefits from economies ofscale does a company receive from going global?Theadditional benefits that company receives will be expansion of market is the oneway that it can get by developing the companies markets internationally andthere by selling the products. Realizing Cost economies from Global Volume andthis can be described as setting the prices that can be developed to be in afixed and low-cost strategy. The company can reduce the manufacturing costs andalso get the high manufacturing or production.
Realizing Location economies thatcan be the company may reduce or lower their costs based on the location andutilizing the benefits of the location more productively like transportationprices and also taxes. Leveraging the competition of global subsidiaries thiscan be beneficial to the company by expanding them globally and getting moreprofits. The established companies have benefit over creating the subsidiaries.
7. Describe the main strategies available toan organization going global. Describe why each strategy may be chosen.Themain strategies available to an organization are Global standardizationstrategy, Transnational strategy, International strategy and Localizationsstrategy.Globalstandardization strategy can be described as that the company goes globally anddo some low-cost strategy there by they increasingly get benefits. Transnationalstrategy can be described as that which provides the products across the worldby providing low cost strategy in the same time. International strategy is theone which will provide or sells the goods that will serve global needs and canreduce their cost structure. Localizations strategy is the one which can beimproving or making changes to the products/goods with high profitability.
Globalstrategy may be chosen because with high pressures for cost reductions and lowpressures for local responsiveness, Transnational strategy may be chosenbecause with high pressures for cost reductions and high pressures for localresponsiveness, International strategy may be chosen because with low pressuresfor cost reductions and low pressures for local responsiveness and whereasLocalization strategy may be chosen because with low low pressures for costreductions and high pressures for local responsiveness.8. What are the advantages and disadvantages ofthe different entry modes a company can use to break in to the global market?Thevarious advantages and disadvantages for five different entry modes Exporting,Licensing, Franchising, Joint Ventures and Wholly Owned subsidiaries are asfollows.Advantagesof Exporting are they can get the greater benefit by getting benefit by makingthe products in low cost in one location and exporting it nationally.Disadvantage of exporting may be unaffordable prices or costs for thetransportation and government threats may lead to the company that will affectthe exporting.Advantagesof Licensing are that by gaining the license it’s an easy way to enter into theforeign market with reducing their development of the product costs.Disadvantage of the licensing are the companies that cannot have the managingcapabilities more when it is on overseas that they won’t realize the economiesof location and social. Profits cannot be shared internationally and cannotinvest in other country when the company is gained profit in one country.
Technologicalissues will be occurred.Advantagesof franchising are very minimal manufacturing/developing products and minimalrisks. Disadvantages are with giving franchise some franchises will make littleless quality and their product quality will be lost, Coordination will be lostwhen there are lot of companies under that franchise.Advantagesof Joint Ventures are easily able to coordinate with the local business and getmore knowledge, product manufacturing can be shared and there by less risk andif there is a support from local government dependencies it will be easier.
Disadvantages are there will be when dealing with the technology there will belack of it.Advantagesof Wholly owned subsidiaries are such that there will be good if company isusing technology it will more beneficial, it will be more benefit that if thecompany wants to invest the benefits that got from another company.Disadvantages are high investment will be done by the parent/major company forthe product development and risks will be high.
Case #17 UberDriving Global Disruption9. How has Uber’s entry, where successful,changed the economics of the local ride for hire market? Who benefits fromthis?Uber developed the app based customers service where theycan pick and drop off the customer with app requests. Compared to taxi drivers,customers to go a place where they can find the taxi. But in uber sitting athome u get taxi to your door step. Uber developed the business In all thecountries to increase the hire market. Many people do it as part time and fulltime where they can come online when the drivers wanted. Uber market is grown with by the word ofmouth.
They targeted people in bigger audience where once the uber is requestedthe car will be with you in 5 minutes that’s where they stole the customersheart to say word of mouth where one person is satisfied with the service theywill definitely let others know about it. Targeting bigger city’s andincreasing more drivers in that place especially where events happening placeslike SFO, LAS VEGAS. They built their network each city very vastly to settleup soon in that city. There are many countries that uber has grown itsuccessful path and making the high profits.
According to the case study Inearly 2014 uber drivers are earning around $91,000 a year in New York and$74,000 in Sanfrancisco (Hill, Jones, 2015, c .111.). This is more beneficial for the uber drivers in makingtheir salary and it is more comparatively with upscale pay.
Lot of benefitsthat gained by the drivers of the uber and as well as the passengers in myopinion as this may lead to save the time of the passengers that passenger canbe directly picked up from his home. There will be lot of flexibility for thepeople around the globe. This uber service exploited to many countries thatmakes common man life easier and also the unemployed to get some employment. 10. What is Uber’s growth strategy?Nowadays the word Uber has gone up against an alternatesignificance in the worldwide vernacular, alluding to the rideshare benefitsurprising the world. The organization creates, advertises and works the Uberversatile application, which permits purchasers with cell phones to present anexcursion ask for which is then steered to Uber drivers who utilize their ownparticular autos.
The rise of Uber in the market was not without contention,with a few urban communities testing the organization with directions andclaims. In the event that Uber was to out of the blue be hauled out of themarket tomorrow, individuals would gripe all at once in light of the fact thatUber has made itself into an exceptionally agreeable organization. Uber has atalent for making sense of what their clients need and offering it to thembefore they even know it themselves. Here are some of our most loved Uberbattles that got everybody talking.
Uber has grown it’s strategy by expandingtheir service to many large cities that which include restaurants, party’s thatwere on holidays and they also has given the service with any time(Hill,Jones, 2015, c .112.).
Uber also expanded by providing the service that driverscan talk their local language and make a friendly environment also acting tothe complaints that customers report to the company and taking necessaryactions if something goes wrong. To expand the business to give the competitionto the competitor like lyft it has given the customers with some price cuts. InJune 2013 Uber reduced their price by25% in SanFrancisco, Los Angeles , San Diego, and Washington (Hill, Jones,2015, c .115.).
It also made a best approach of taking the cities that have notransportation and made uber as their transportation that used them veryeffectively to expand their business and get the benefits.Friendly environment also made the uber growth strategy andthis concludes the uber’s growth strategy. References:Charles W. L.
Hill and Gareth R. Jones (2015). StrategicManagement: An Integrated Approach, Theory and Cases 12th edition.South-Western Cengage Learning.