Firm Strategy

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Contents
Rise of New Competitors and a changing basis of competition......................................................2
Changing Global Competitive Landscape:......................................................................................2
Technological Revolution:...............................................................................................................4
Increasing Globalization:.................................................................................................................5
Development of Dynamic Core Competencies:..........................................................................6
Development of Human Capital:.................................................................................................6
Development of Employee Skills:...............................................................................................6
References:......................................................................................................................................8
Rise of new Competitors and a changing Basis of Competition.
Companies strategies in a changing Global competitive landscape.
Globalization is no more a future perspective. Businesses are now running their operation in the
global hyper-competitive landscape. There are some real-life situations best portray the
international ecosystem in which the businesses now conduct their operations. For instance,
consider the analysis of Bardhan (2007), where the authors study the effect of changes in the
valuation of the stock market all over the world. Not long ago, China stock exchange suffered a
substantial fall in the value of the stock, which in turn also impacted the stock exchange of other
countries, especially of United States of America. Lately, the Chinese Government has acted to
curb inflation in its country and do that, and the Chinese Government restricts its stock crisis that
is particularly linked with inflation. Hence, this action eventually disturbed the U.S. economy as
it caused severe ripple impacts that eventually slowed down the U.S. market (Bai 2014). On the
other hand, changes that occurred in U.S. dollar currency also affected the China economy as
China is one of the largest holders of the U.S. Dollar in the world (Maozhong 2009).

Changing Global Competitive Landscape:

Due to increasing global competition, several countries have developed a more balanced and
efficient atmosphere in their organizations that aid businesses in gaining a competitive edge over
their competitors. For instance, India, China, and Germany companies have made some massive
changes in their business environments that have caused drastic improvements in their
competitive prominence in the international market (Xiao-li 2013). Multiple factors are causing
such hyper-competition in the market. Among these factors, Innovation in Technology is
changing the landscape of competition in the market rapidly, especially in the recent decade.
Consequently, Organization decision-makers are facing experiencing certain gaps in the strategic
management that are causing variations in the competition landscape. Methods and techniques
that were very useful in the prior years are not good enough. Hence, modern techniques and
methods are now in development phases. The industrial transformation and rising globalization
pose certain challenges to companies' capability to sustain their effectiveness and competitive
edge in the domestic and global economies. The companies in international markets face certain
latest key strategic gaps, such as the removal of business borders, technological interaction,
fewer differences amongst manufacturing and service companies, main innovations in logistics,
and introduction of international markets. Companies are now facing these sudden changes in the
business world, and at the same moment, they are facing strong global competition in local
markets (Zeppini and Van Den Bergh 2020).

The United States has recently created a unique innovation system leading the world towards
globalization and the competitive business environment. All the countries worldwide are trying
to catch up with this innovation system to truly bring Innovation and increase the organization's
productivity by proposing new Strategies for tackling the Global competitive environment. Who
can maintain living standards and economic growth for the country by dealing with the new
Global competitive environment set by the United Kingdom and the United States that can lead
to innovation and creativity? The Government of every country is involved in research and
development for promoting innovative techniques and approaches for encouraging high
technology entrepreneurship (Petricevic and Teece 2019).

The new competitive environment throughout the globe is based on increasing competition and
achieving the desired outcomes for large organizations. The outcome may include the growth
and development of a country's economy by using technological advancements. Information
technology and communication require multinational companies to deal with competitiveness by
increasing their brand reputation and recognition with breakfast technology and advancements.
The information policy is considered to be the latest trend in the globe based on technological
advancement. Most organizations are focused on the national innovation strategy to emphasize
their technological product and implement the policy framework. The skilled talent and
entrepreneurs are welcomed in the competitive business environment to bring talent new skills,
capabilities, and opportunities for the Global Business market (Pettinger 2020).

Moreover, the organizations are also focusing on achieving the attention of the political leaders
in the government Agencies to raise funds and collaborating with the stakeholders at a local and
regional level. In every industry, the public and private partnerships are also creating prominent
petrol in bringing new technological advancement in the Marketplace and increasing
competitiveness. The basic purpose of increasing the competition is to bring Rapid technological
advancement in the Marketplace that lowers the post of production and maximizes the
profitability and productivity of an organization. The organizations' tuition framework and
innovative manufacturing processes play a vital role in bringing creativity and innovation in the
new product development process. The technological inventions are commercialized, which
provides freedom to every industry to deal with the emerging economic powers. Industrialized
economies are focusing on the research and development techniques for innovation ecosystems
helping the world's richest nations (Pettinger 2020). 

The new competitive landscape of the world is based on the advancements and Innovation in the
Technology Sector. Today with the competitive business environment around the globe,
businesses are exploring new ways to invest, raise capital, and bring technology and talent into
the organizational business environment. Organizations focus on creating strategies based on low
cost in the high profitability with new technological capabilities. The new technological
advancements allow the organizations to increase the quality and lower the force surviving in the
emerging economies.

Technological Revolution:
Technological Revolution has brought magnificent changes in the global business trends. These
changes have reduced the development life cycles of the products, patents effectiveness have
been decreased in safeguarding innovative technology, and lowered the time needed to generate
new products in the market. Moreover, modern technology is letting businesses modify its
product and services as per the customers' requirements more swiftly and efficiently (Litvinenko
2020). Technological advancement is expected to grow constantly. As per the study of (Feng and
Magee 2020), in the upcoming decade, it is expected that the use of computers and transmission
satellites is predicted to be double up while interaction through wireless systems will increase
from thirty million to one billion.

Moreover, the net users will increase from seventy million to two billion. Hence, this
technological advancement is the wake-up call for businesses to employ drastically improved
methods to manage and incorporate data. Organizations must also deliver a mechanism for more
advancement in technological. As all these technological advancements are taking place in a
modern arena, Hence Organization ought to give special importance to all its employees on the
administrative understanding of the company operations to sustain a competitive advantage in
the global economy (Pettinger 2020).
Increasing Globalization:
Globalization and the improvement in the country’s relations lead to the formation of
multinational companies. Consequently, it impacted the operations of local industries terribly
(Sethi, Bhattacharjee, et al., 2021). Businesses in the foreign markets have now ceased to be set
aside only for multinational organizations. By forming web pages for advertising and publicity,
the Latest technology has authorized micro businesses to become great competitors in
international markets. For instance, the key reason behind globalization is the introduction of
domestic firms into foreign markets. China has been aimed for additional venture capital by
companies in South America, Africa, and Europe. This action of the countries of these regions
has a strong effect as well. For instance, the G.D.P. of China has left behind Germany G.D.P.
and is about to surpass the economy of the United States of America and Japan, which is making
analysts in predicting that China will become a Superpower in the years to come (Lin and Long
2020).

The alliance of Technological revolution and globalization is causing a Global Competitive

landscape (Petricevic and Teece 2019).

Technological
Revolution

Global Competitive
landscape

Increasing
Globalization
In the new competitive landscape, companies confront substantial ambiguity, vagueness, and
rising strategic gaps. This extremely unstable atmosphere causes constant instability in the
operations of the businesses. Resultantly, businesses must produce high-quality goods and
services at lower rates to fulfill different customers' requirements. Thus, managers are motivated
to reduce this ambiguity by discovering modern ways of attaining competitive advantage over
their competitors (Withers, Ireland, et al., 2018).

Hence in this rising competition in the global market, Businesses strategies in the changing
global competitive landscape are as follows:
 Development of Dynamic Core Competencies
 Development of Human Capital
 Development of Employee Skills
 Make Effective Use of New Technology
 Engaging business operations in Valuable Strategies
 Exploiting Global Markets

Development of Dynamic Core Competencies:

Businesses need to employ a Dynamic core competencies strategy in their operations. Dynamic
core competencies assist businesses in sustaining flexibility and react swiftly to unexpected
variations in the business world. Furthermore, it also aids businesses in endorsing their
organizational atmosphere. In other terms, businesses with dynamic core competencies can shape
the organizational atmosphere to some extent in which they conduct their operations and
challenge their competitors. By doing so, they are well able to accomplish business objectives.
Development of Human Capital:
Some businesses try to attain a competitive edge over their competitors by concentrating human
capital in those domains of the business which require more attention. In this regard, businesses
employ contingency employees in those tasks which are not essential. It will also require the
business to significantly invest in the development of human capital.
Development of Employee Skills:
Businesses are required to employ dynamic flexibility in their operations. For example. They
must have the expertise and abilities to make the necessary changes to achieve a competitive
edge in the modern competitive landscape. To accomplish this. they must devote substantially in
the development of employee skills. This kind of investing is really important to have dynamic
core competences and gives aid to businesses in acquiring global competition learnings.
References:
Bai, Z., 2014. Study on the Impact of Inflation on the Stock Market in China. International
Journal of Business and Social Science, 5(7), pp.261-271.

Bardhan, P., 2007. Poverty and inequality in China and India: Elusive link with
globalisation. Economic and Political Weekly, pp.3849-3852.

Feng, S. and Magee, C.L., 2020. Technological development of key domains in electric vehicles:
Improvement rates, technology trajectories and key assignees. Applied Energy, 260, p.114264.

Lin, F. and Long, C.X., 2020. The impact of globalization on youth education: Empirical
evidence from China's W.T.O. accession. Journal of Economic Behavior & Organization, 178,
pp.820-839.

Maozhong, Y.Y.C., 2009. The Basis, Impact and Conflicts of the Existence of U.S. Dollar
Hegemony [J]. Studies of International Finance, 12.

Petricevic, O. and Teece, D.J., 2019. The structural reshaping of globalization: Implications for
strategic sectors, profiting from Innovation, and the multinational enterprise. Journal of
International Business Studies, 50(9), pp.1487-1512.

Pettinger, R., 2020. Technological Development. In The Socio-Economic Foundations of

Sustainable Business (pp. 93-103). Palgrave Pivot, Cham.

Sethi, P., Bhattacharjee, S., Chakrabarti, D. and Tiwari, C., 2021. The impact of globalization
and financial development on India’s income inequality. Journal of Policy Modeling.

Withers, M.C., Ireland, R.D., Miller, D., Harrison, J.S. and Boss, D.S., 2018. Competitive
landscape shifts: The influence of strategic entrepreneurship on shifts in market
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Xiao-li, Y.H.T.F., 2013. An Empirical Analysis on Competitiveness and Influencing Factors of

Service Sectors in Brics [J]. Journal of International Trade, 2.
Zeppini, P. and Van Den Bergh, J.C., 2020. Global competition dynamics of fossil fuels and
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