Analyzing Competition Between Local Managers And Innovative Managers

Question: Discuss about the Analyzing Competition Between Local Managers And Innovative Managers Of International Organization. Answer: Introduction The modern corporate world is characterized by increased globalization that has seen the growth of international trade globally. One of the reasons for the rapid growth of international trade has been due to the removal of the protectionist theories which were made to protect the local companies from unfair competition from multinational corporations, companies or organizations. Lack of protection and free entry to international markets has enabled the multinational companies to find new and emerging opportunities for growth or expansion of their services (Morschett et al. 2015). Their arrival has been a benefit to the consumers who are spoilt for choices with a wide variety of choices for goods and services they can choose from however the arrival of these multinational companies and corporations has become more of a death sentence to the local companies as well as to the local managers who are heavily tasked to develop effective strategies to counter the competition. This paper eva luates the problems often encountered by local managers due to the stiff competition from the multinational corporations. The paper then recommends that can be adapted to find solutions to the challenges. Problems encountered by local managers as a result of competition from multinational corporations. Lack of innovative capacity Due to the increased competition in the international markets and the free entry policies to foreign markets, local companies or many local organizations are facing the challenge of improving their productivity and production standards and the only way to go is innovate new ways or strategies of doing things differently from their competitors. Innovation has become a very crucial determinant of industry competitiveness amongst different organizations and in different regions globally (Reiche et al. 2016). With such an understanding it is possible to say that local managers in Australia are unable to compete with companies led by more innovative managers and leaders of international organizations. However, this may not be entirely the truth as the local managers may develop effective strategies to enjoy the monopoly of local consumers. However without innovation consumers are easily swayed away by-products which meet their taste and preferences. Lack of experts to advise them on market analysis One of the impending reasons why local managers of local industries in Australia have been unable to compete with multinational corporations such as the Unilever is because in most cases these multinational corporations or organizations have experts or market analysts. They also have strategist who advise them on how to enter emerging markets. On the other hand Hooper (2016) reports that the local companies in Australia have very little guidance and usually rely on the government to impose policies which will protect the local organizations. It is an idea which has been found to fail because of increased globalization and rapid market dynamics in international trade. The innovative managers and leaders of international organizations have an advantage and especially a comparative advantage in the production of certain good and services as the companies are fully endowed with technological resources which help them in improving their production and reducing their production costs (Mutlu et al. 2015). This automatically makes their good of more quality standards and cheaper in the market and therefore attracting customers from all over the world. Whereas the local managers have little resources and use capital-intensive means of production which increase their costs of production and subsequently result in high prices for their goods and services. Inability to meet the changing customer demands The innovative managers are able to meet the increasing and changing demands of their customers through the production of goods and services which can be sad to be customized to meet specific consumer needs. This has been one of the ways multinational companies have found their way into various local markets by capturing the element of consumer taste and preferences and producing goods which help consumers achieve their utility (Bianchi, 2014). On the other hand, the local managers have been used to traditional methods of doing things and have failed in utilizing the opportunity and advantage they possess of understanding their local consumer tastes. This could have been one of the ways of dealing with competition from multinational companies as consumers have a tendency of valuing a certain local taste and if the local companies can maintain their production to meet that specific local taste then multinational companies may find it difficult to succeed in such markets as reported by Sako (2015). However, the innovative managers having that understanding have always innovated products to meet such specific end-user needs through strategic analysis of the existing market gaps and emerging opportunities. In an attempt to counter the counter the competition from multinational companies, the local managers have also failed by emulating or copy the strategies employed by the innovative managers instead of working on promoting the uniqueness of their products in the market. An attempt to compete with multinational companies by using the same strategies may be ineffective to the local industries growth strategies due to the differences in resource endowment and local managers need to understand these differences and use strategies to which their companies or organizations can fully employ without pressure of resources by understanding their markets and their existing competitive advantage as well as using the weaknesses of the multinational corporations to build their product brand (Jernigan Babor, 2015). Competition in international markets has been entirely being based on companies or country comparative and competitive advantages and therefore this should form the basis of strategic a nalysis of the local companies it provides them with an opportunity to evaluate their strengths, weaknesses, opportunities, and threats in their market and produce goods meet the consumer demands. Solutions to the problems experienced by local managers Identifying the company competitive assets One of the ways through which local managers can counter the competition they are facing from multinational organizations and companies is by identifying their competitive assets (Brondoni, 2014). These assets provide the local companies with a competitive advantage in their home market and if utilized fully it would make it difficult for multinational companies to enter into Australia local markets. One of the competitive assets the local managers and companies have is the local distribution network in which the multinational companies may take a lot of years to establish. The managers can utilize this advantage and lead the company to another level. Utilizing the longstanding relationships with the government The local companies as well as the managers also enjoy the advantage of having longstanding relationships with the government offices which means that they enjoy a greater support in their activities from the government an advantage that multinational companies do not have and are always looking into ways in which the government policies may favor their business operations (Anatan, 2014). Using this advantage the local companies may enjoy a great deal of support through favorable government policies which protect these companies from exploitation by the multinational companies. Utilizing the advantage o company ability to produce goods which appeal to the local tastes The companies also enjoy the advantage in their ability to produce goods and services which appeal to the local tastes. Consumer behavior is highly influenced by their tastes and preferences and this has been one of the strategies multinational companies use to enter into local markets by producing goods which meet specific consumer tastes (Li Lu, 2017). The fact that the local companies have known their consumers for a long time it is possible for them to understand their different local tastes and produce goods and services which counter these effects. Conclusion It is therefore important to note that as much as it may appear difficult to compete with innovative managers from multinational corporations, local managers have the ability to make sure that these companies do not thrive in their local markets. Internationally they may encounter great challenges in competing with the innovative managers due to the comparative advantage of different nations and the threats or challenges resulting from differences in resource endowment as well as technological capabilities in production (Ratajczak-Mrozek, 2014). But the managers have a great pool of advantages through the use of available competitive assets which when fully utilized can greatly reduce the competition between the local managers or firms and the multinational innovative managers or organizations. References Anatan, L. (2014). Factors influencing supply chain competitive advantage and performance. International Journal of Business and Information, 9(3), 311. Bianchi, C. (2014). Internationalisation of emerging market firms: an exploratory study of Chilean companies. International Journal of Emerging Markets, 9(1), 54-78. Brondoni, S. M. (2014). 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