Business Cap DF
Discussion – Answers to Questions
Answer to Q1a
Most importantly, firms today operate in a global setting, where local influences might have severe repercussions across other areas around the world. In this regard, there are some reasons why the United States firms must worry if earthquakes, tsunami, or related incidents hit Japan. While such events could have a significant market on the Japanese markets, including lowering the purchasing power of individuals, such effects would also face U.S based firms. The imports from and exports to Japan would also slow as the proportion of the country’s sectors experience considerable effects. Japan also plays a pertinent function in the global supply chains as both a supplier and producer of products. A small disruption in the production, as well as the distribution of goods, could negatively influence the just-in-time processes. Japan’s production of electronics, vehicles, and semiconductors may include most likely many of the United States firms that depend on Japan for critical parts, including batteries and electrical components, among others.
There is also a concern regarding speculation in currency markets besides the repatriation of assets back to Japan. Another worry is that Japan’s debts, which are already over 200 percent of GDP, could increase as the government takes measures to fund its operations and reform efforts. In other words, foreign trade linkages remain the main channels through which adverse events such as Tsunami and Earthquakes in japan would affect America. While Japan’s share on the United States exports is relatively small, a significant effect would shift to the import side, where a disturbance to Japan could disrupt the production of US-Japan based auto plants. Don't use plagiarised sources.Get your custom essay just from $11/page
Answer to Q1b
Google Inc. currently holds approximately 68 percent of the American market, with other firms sharing the remaining 32 percent. The company has become what one can call a bid dog in the traditional search. The firm is engaged in a search engine business. Its mission is organizing the globe’s information and making it universally available and suitable. As a technology company, the company operates in the internet and cloud computing industry. Founded in the year 1998, the organization has grown to become the most innovative firms in the modern innovation and technological space. It has also continued to develop, influencing sectors using its search engine tools. In fields such as science, entertainment, automobile, and advertising, Google has had a significant influence on shaping their emergent trends. With its cross-cutting offerings, the company also continues to meet the various needs of its consumers increasingly.
However, the company faces high levels of competition in this industry. In particular, the online search landscape has several players, with companies holding varying proportions of the market share. Google has a monopoly of nearly 90 percent of this market, leaving little room for other companies. The second-largest play, Google’s closest competitor, is Yahoo. This firm has a market share of about 2.32 percent. Other companies that make up the list include Microsoft, Bing, Apple, Facebook, as well as Amazon (Dolata, 2017). Apart from these competitors, new competition could probably arise from other small businesses that try to find a niche in cloud computing, including Netflix.
Answer to Q2
The term ‘core competency’ denotes strategies that put in place to help a given business to expand or grow and attract more clients into the company. It is also vital for a company to recognize its core competencies to curve its position for better than its rivals. Honda is generally known for its engines. One of its core competencies regards its precise management approach. The company’s products are also globally competitive and sell highly like other products. The company is also evolving its presence in industrial as well as mobility robotics. Besides, Honda’s other competency is that the firm is technical and product-oriented. Another competency is the company’s culture (Industry Week, 2017). According to Shaughnessy (2012), Amazon’s core competencies include the organization’s culture, self-sustaining platforms, distribution, and logistics, as well as technology. On its part, FedEx’s core competencies include brand equity, human resources known to support its workers, robust infrastructure, established devotion to innovation and technology, and supply chain (FedEx, 2020). Kowitt (2014) argues that one of the Whole Foods is food. He argues that unlike other businesses in its industry, the company puts its emphasis on natural as well as organic products that have no flavors, additives, or food colors. He argues that the company ensures superior client satisfaction, product quality, as well as team excellence.
Answer to Q3
| Industries | Classification |
| Health care industry | It is a fast-developing industry in the United States and requires several healthcare experts such as doctors, nurses, therapists, and physicians, among others. It is also growing at a fast rate and is thought to increase significantly in the future. |
| Dry cleaning industry | It is a stagnant industry due to several issues, including lifestyles, preference changes, and varying business needs. |
| Energy drinks, sports drinks, and vitamin-enhanced beverage industry | There is increasing competition in this industry, with high customer switching and preferences, reflecting a highly fragmented industry. |
| Camera film and film-developing industry | This industry is rapidly growing due to emerging technology products and increasing needs from customers for quality films. |
| Wine, beer, and liquor retailing | This industry is mature and, therefore, has experienced slow growth due to substantial investment requirements for new firms and players. |
| U.S domestic airline industry | This industry is considered to be high velocity and turbulent, with several airlines and emerging firms that make the market extremely competitive. |
| Retail banking industry | This industry is also mature, having been in operation for centuries in the United States. It has established banks and financial services organizations. |
| Retail bookstore industry | The retail industry in America is also regarded as mature because it has established players. Most of the firms in this industry have been in existence for years. |
| Computer video games industry | This industry is rapidly growing due to ever-increasing needs for superior technologies from customers and other industry players. |
| Newspaper industry | The newspaper industry is stagnating and declining due to alternative sources of information. Besides, high and increased technological spaces have created still competition for this industry. |
Answer to Q4
| Company Name | Generic Strategy utilized |
| McDonald’s Dollar Menu | This company uses a cost leadership strategy to minimize costs while offering products at affordable prices. |
| Starbucks Coffee | This company employs the differentiation strategy to make it stand out from its competitors |
| Subaru cars | This company combines cost leadership, differentiation, and focus strategies to deal with pressure from competing companies. |
| Wal-Mart | It uses cost leadership strategies to keep the prices of its products and services low. |
| Swatch watch | The company uses differentiation, cost leadership, and focus strategies to overcome its competitors. |
References
Dolata, U. (2017). Apple, Amazon, Google, Facebook, Microsoft: Market concentration-competition-innovation strategies (No. 2017-01). Stuttgarter Beiträge zur Organisations-und Innovationsforschung, SOI Discussion Paper.
FedEx. (2020). Make supply chain management your competitive advantage – FedEx SupplyChain Solutions. Fedex.com. Retrieved 6 April 2020, from http://www.fedex.com/us/supply-chain/services/index.html.
Industry Week. (2017). Honda by the Numbers. IndustryWeek. Retrieved 6 April 2020, from https://www.industryweek.com/leadership/article/22024405/honda-by-the-numbers.
Kowitt, B. (2014). Whole foods takes over America. Fortune Magazine.
Shaughnessy, H. (2012). Why Amazon Succeeds. Forbes. Retrieved 6 April 2020, from https://www.forbes.com/sites/haydnshaughnessy/2012/04/29/why-amazon-succeeds/#1bcf8523385a.