Economics of Globalisation

Question: Discuss about theEconomics of Globalisation. Answer: Introduction In the high competition, every firm nowadays tries to expand its market and enter into the foreign market in order to increase its profit and market share. In this project, Diamond Technology had been taken into consideration. It is an international industry that deals with consulting and designing services within the Electronic Service Integration industry. The company provides services such as consulting, D-tools for training and implementation of strategies, and sales tools. Target Markets and Market Analysis The company aims to enter the market of Turkey. The selected country can be considered as one of the growing economy in terms of electronic service industry. Turkey is open for liberal trade investment. Due to this reason, the organization Diamond Technology will be highly beneficial this market can be penetrated effectively. There are several domestic players, which are present in the given industry. Vestel Elektronik and Casper Bilgisayar Sistemleri can be considered as the primary competitors for Diamond Technology. It is also expected that this sector will incur positive revenues in the near future. Moreover, this market can be considered as one of the untapped markets in comparison with other international markets. Apart from this, the cost of labour is not on the higher side, therefore, it is expected that the organization Diamond Technology can easily cross their break-even point within few years. Marketing Strategy In order to consider the marketing strategy Diamond technology, the managers of the company takes the help of the 4 Ps marketing mix strategies. Product: Diamond technology tries to innovate the products and the services offered by the company in order to meet the demand of the customers in the new market. A market research about the taste and the preference of the customers give a knowledge about the changes required in the market. Price: The managers of the company considers price skimming strategy while entering the market of Turkey. The managers decides to lower the price of the service than its competitors in order to attract more customers towards the brand. Place: The areas that are more concentrated is chosen by Diamond technology to open a store for the company. This helps to increase the sales and the revenue of the company. Promotion: Diamond technology considers effective promotional strategies like advertising, sales promotion, discounts, sponsorships in order to promote the products and services offered by the company. Figure 1: 4 Ps of the marketing mix (Source: As created by the author) HRM Strategy The human resource management team of Diamond technology employs a number of HRM strategies that not only help the company to enter the market of turkey but also sustain in the high competition. The strategies implemented by the company are as follows: Talent management: The managers of the company try to evaluate the talent of the employees in order to identify their strengths so that the appropriate task can be allocated. When the employees are given the responsibility of the task in which they are efficient, the productivity and performance rises. Continuous improvement: The managers intend to lay focus on the innovation of the services offered by the company to ensure competitive advantage over its rivals. Employee relation: the relationship between the management and the employees can be improved by defining and clearing the objectives and the changes needed in the company. Supply Chain Strategy The supply chain strategy used by Diamond technology is adopting demand-driven planning based on the real time demand insight and the shaping of demand. Further, the company tries to build up a supply chain that is adaptive with the rapid planning and the execution of the plan (Papadopoulos and Heslop 2014). The company tries to optimise the design of the product for supply, manufacturing, and sustainability in order to increase the profit margin.One of the other strategies that help the organisation to gain an enhanced supply chain is to align the supply chain with the organisational goals. This can be done linking the sales and the operational planning with the corporate business planning. Market Selection and Entry Mode Strategies Papadopoulos and Heslop(2014) infers that the success of an organization depends upon the selection of effective market entry strategies. The organization Diamond technology can opt for several market entry strategies. The management of the organization can select a niche market strategy to cater a specific group of customers. With this target, they can opt for mergers and acquisitions with local distributers to order to penetrate through the market. The organization can also opt for a high-street retail pricing strategy to create a branding awareness among the selected group of customers. This will further help the organization to increase their market share and compete with their local and international competitors. In addition to this, with this strategy, the organization can easily nullify majority of the local competitors from competition. Lastly, the organization needs to create a contingency plan as well, if things do not work initially. Internationalization Strategy Diamond technology experiences a threat from the competitors while entering into the market of Turkey. The market of turkey is highly concentrated and therefore there are a number of rival companies of Diamond technology operating in the same industry. The rival companies have strong market base and high brand value. Moreover, they have a sustainable position in the market. On the other hand, Diamond technology have innovation and cost effective strategies with abundant resource. The company considers internalization strategies such as development with foreign distributors and strategic alliance with the foreign partners to carry out the business smoothly (Czinkota and Ronkainen 2013). These strategies are useful in entering the market of Turkey. Conclusion The market analysis and the various strategies help Diamond technology to successfully enter the market of Turkey. Moreover, the current position of the company is stable that indicates that the company has strong possibility of entering into the market successfully and sustain into the market. References Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning. Papadopoulos, N. and Heslop, L.A., 2014. Product-country images: Impact and role in international marketing. Routledge.