Harrisburg University of Science and Technology
1. Standardization, format wars, and how
standardization can lead to a format war:
can be described as for any such object in the world, there can be one standard
so that the new objects which are designed in the future can follow the legacy
objects. The absence of standardization causes significant inefficiencies and
danger public safety so that standardization is very crucial. For example,
TCP/IP is the technical standard how the data flows from physical layer to
application layer in the networking. Format war at times called as standard
war. This format war will occur when companies will be participated in a
competition and if the conflict occurs in the process of industry standard. For
example, the format wars in between the operating systems of the smart phones.
In this example the competition is among windows, android, and ios. In this
dispute android came to dominate the market. However, Format war is the process
of trying to replace the existing technical standards will lead to a format
2. Once standardization occurs, how does the
will benefit by once the standardization occurs that which each company can use
that standard that leads to the benefit of cost cutting process and will get
help from other business/company as and when needed. In my opinion I am going
to take an example of using sound technologies for most electronic gadgets as
Dolby. Dolby has grown up their technology and it sets a standard for noise
reduction using different approaches like audio compression and expansion in
tape recording. This sound technology is used not only in PC’s and it can be
used in Movie theaters for the high technology surrounding sound system and it
leads to benefit the industry in above ways. Now a day this is one of the most effectively
used sound technology. (Hill, Jones, 2015, p .213.). W3C set the standard for HTML and other few languages that
can be used free for the web presentation by using the graphics and texts that
can be build in the website and based on the HTML many other web applications
are being built. Group of web professionals and companies that actively
supported W3C and the adoption of web standards.
3. During a format war, describe how competition
occurs and how a price war can take shape.
my opinion competition occurs during a format war because
4. Define first and second movers. How do these
two entities interact within and industry, and who learns what as the industry
movers is the one that first one it would be involved in specific market may be
come out with a new technology or just create a new innovation. Second movers
can be defined as that that are building their product on the top of existing
product/technology with taking he advantages of the flaws that can be made from
the first mover. The two entities interact within an industry by learning from
their mistakes and thus create an updated and improved product design and
market strategy which causes lower initial costs to both first movers and
second movers. First mover may have patents on it’s technology that prevents
the second mover from reverse engineering. Both first and second movers will
learn industry takes shape based on the technology that reach to the users.
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?
go global because that companies get more profits by expanding the business,
expanding the sales internationally, creating a brand, positive impact on the
community, providing more jobs globally. Above are few reasons why the company
is one of the global entry mode that by which will give the benefit for the
company by exporting their products internationally and sell their products. Licensing
is one of the other entry mode that company can make use of getting them
internationally. Franchising is one of the other entry mode that companies can
follow for getting profits by giving the franchise to the child companies and
thereby increasing their brand globally and due to this they can expand the
business and attract more number of customers, Joint Ventures is one of the
other key that company can tie up with the local businesses and can share their
investment and profits. Wholly Owned subsidiaries is one of the other entry
mode which will give benefit with reliable local and global economies.
6. What additional benefits from economies of
scale does a company receive from going global?
additional benefits that company receives will be expansion of market is the one
way that it can get by developing the companies markets internationally and
there by selling the products. Realizing Cost economies from Global Volume and
this can be described as setting the prices that can be developed to be in a
fixed and low-cost strategy. The company can reduce the manufacturing costs and
also get the high manufacturing or production. Realizing Location economies that
can be the company may reduce or lower their costs based on the location and
utilizing the benefits of the location more productively like transportation
prices and also taxes. Leveraging the competition of global subsidiaries this
can be beneficial to the company by expanding them globally and getting more
profits. The established companies have benefit over creating the subsidiaries.
7. Describe the main strategies available to
an organization going global. Describe why each strategy may be chosen.
main strategies available to an organization are Global standardization
strategy, Transnational strategy, International strategy and Localizations
standardization strategy can be described as that the company goes globally and
do some low-cost strategy there by they increasingly get benefits. Transnational
strategy can be described as that which provides the products across the world
by providing low cost strategy in the same time. International strategy is the
one which will provide or sells the goods that will serve global needs and can
reduce their cost structure. Localizations strategy is the one which can be
improving or making changes to the products/goods with high profitability.
strategy may be chosen because with high pressures for cost reductions and low
pressures for local responsiveness, Transnational strategy may be chosen
because with high pressures for cost reductions and high pressures for local
responsiveness, International strategy may be chosen because with low pressures
for cost reductions and low pressures for local responsiveness and whereas
Localization strategy may be chosen because with low low pressures for cost
reductions and high pressures for local responsiveness.
8. What are the advantages and disadvantages of
the different entry modes a company can use to break in to the global market?
various advantages and disadvantages for five different entry modes Exporting,
Licensing, Franchising, Joint Ventures and Wholly Owned subsidiaries are as
of Exporting are they can get the greater benefit by getting benefit by making
the products in low cost in one location and exporting it nationally.
Disadvantage of exporting may be unaffordable prices or costs for the
transportation and government threats may lead to the company that will affect
of Licensing are that by gaining the license it’s an easy way to enter into the
foreign market with reducing their development of the product costs.
Disadvantage of the licensing are the companies that cannot have the managing
capabilities more when it is on overseas that they won’t realize the economies
of location and social. Profits cannot be shared internationally and cannot
invest in other country when the company is gained profit in one country. Technological
issues will be occurred.
of franchising are very minimal manufacturing/developing products and minimal
risks. Disadvantages are with giving franchise some franchises will make little
less quality and their product quality will be lost, Coordination will be lost
when there are lot of companies under that franchise.
of Joint Ventures are easily able to coordinate with the local business and get
more knowledge, product manufacturing can be shared and there by less risk and
if there is a support from local government dependencies it will be easier.
Disadvantages are there will be when dealing with the technology there will be
lack of it.
of Wholly owned subsidiaries are such that there will be good if company is
using technology it will more beneficial, it will be more benefit that if the
company wants to invest the benefits that got from another company.
Disadvantages are high investment will be done by the parent/major company for
the product development and risks will be high.
Case #17 Uber
Driving Global Disruption
9. How has Uber’s entry, where successful,
changed the economics of the local ride for hire market? Who benefits from
Uber developed the app based customers service where they
can 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 at
home u get taxi to your door step. Uber developed the business In all the
countries to increase the hire market. Many people do it as part time and full
time where they can come online when the drivers wanted. Uber market is grown with by the word of
mouth. They targeted people in bigger audience where once the uber is requested
the car will be with you in 5 minutes that’s where they stole the customers
heart to say word of mouth where one person is satisfied with the service they
will definitely let others know about it. Targeting bigger city’s and
increasing more drivers in that place especially where events happening places
like SFO, LAS VEGAS. They built their network each city very vastly to settle
up soon in that city. There are many countries that uber has grown it
successful path and making the high profits.According to the case study In
early 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 making
their salary and it is more comparatively with upscale pay. Lot of benefits
that gained by the drivers of the uber and as well as the passengers in my
opinion as this may lead to save the time of the passengers that passenger can
be directly picked up from his home. There will be lot of flexibility for the
people around the globe. This uber service exploited to many countries that
makes common man life easier and also the unemployed to get some employment.
What is Uber’s growth strategy?
Nowadays the word Uber has gone up against an alternate
significance in the worldwide vernacular, alluding to the rideshare benefit
surprising the world. The organization creates, advertises and works the Uber
versatile application, which permits purchasers with cell phones to present an
excursion ask for which is then steered to Uber drivers who utilize their own
particular autos. The rise of Uber in the market was not without contention,
with a few urban communities testing the organization with directions and
claims. In the event that Uber was to out of the blue be hauled out of the
market tomorrow, individuals would gripe all at once in light of the fact that
Uber has made itself into an exceptionally agreeable organization. Uber has a
talent for making sense of what their clients need and offering it to them
before they even know it themselves. Here are some of our most loved Uber
battles that got everybody talking. Uber has grown it’s strategy by expanding
their service to many large cities that which include restaurants, party’s that
were 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 drivers
can talk their local language and make a friendly environment also acting to
the complaints that customers report to the company and taking necessary
actions if something goes wrong. To expand the business to give the competition
to the competitor like lyft it has given the customers with some price cuts. In
June 2013 Uber reduced their price by
25% 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 no
transportation and made uber as their transportation that used them very
effectively to expand their business and get the benefits.
Friendly environment also made the uber growth strategy and
this concludes the uber’s growth strategy.
Charles W. L. Hill and Gareth R. Jones (2015). Strategic
Management: An Integrated Approach, Theory and Cases 12th edition.
South-Western Cengage Learning.