Process of strategic planning

The process of strategic planning continues with the formulation of a strategy.
Being a reputable airline, Fly Emirates can take into account various strategies to achieve both competitive success and the maintenance of their position as the industry leader. One important tactic that can aid Fly Emirates in keeping its status as a top airline is market penetration. Market penetration, as described by Trott (2008), is the process by which a company uses its current products to try to increase its market share in the current market.
By establishing new routes and interacting with fresh clients, Fly Emirates may successfully implement this plan. Innovative marketing techniques, including well focused advertising, approaches such as specific targeted advertisements and offers to attract the clients. The strategy would lead to Fly Emirates gaining customers from its competitors and at the same time new clients.

Fly Emirates can also adopt product development as a corporate level strategy. Product development is a strategy of creating new products to serve the existing market (Trott, 2008). The product development strategy may involve Fly Emirates investing in a service related product such as offering hotel services to its clients.











Learning Activity #2

Considering the five basic options listed below that are available for competing in international markets, discuss in detail the factors that a firm must consider when selecting each of these strategic directions.

Direct Exporting,

Creating a wholly owned International Subsidiary,

International Franchising,

International Licensing, and

Creating an International Joint Venture or Strategic Alliance.

The International market is quite challenging and demands for any firm operating in the market to be quite strategic in the approaches they choose. A firm has to consider different factors before settling for any of strategy.

I. Direct Exporting

Direct Exporting involves shipping directly to international clients without involving any intermediaries. For a firm to choose this strategy as an approach to compete in the international market successfully, the following factors have to be considered;

Adequate capital. Direct Exporting is quite a capital intensive venture hence a firm need to be prepared well when undertaking such a strategy. According to Buckley & Casson (2010), it is a strategy that demands for more energy, time and other resources to be carried out.

Market size. Before settling on direct export as a strategy to compete in the international market, a firm has to have conducted a market research to ensure that the market is able to sustain such a venture.

II. Creating a wholly owned International Subsidiary

When creating a wholly owned subsidiary in the international market, a firm needs to consider the following factors;

The Economic situation of the new market. A whole owned subsidiary of the firm needs to understand the economic characteristics of the country or region in which the new operations are based. Different countries have different economic growth characteristics, and if a firm is to succeed through a whole owned subsidiary, it has to understand the economic situation well.

Legal factors. A firm need to understand the laws and regulations guiding the incorporation of business entities so as to operate legally.

III. International franchising

Economic stability and cultural factors are critical when pursuing international franchising as a strategy for competing in international business. Economic stability will result in the success of the franchise hence a firm competing favorably and the vice versa. On the other hand, cultural consideration has to be given priority as a firm’s product or way of reaching the customers might be culturally inappropriate or unacceptable (Dev, Erramilli & Agarwal, 2002).

IV. Creating an International Joint Venture or Strategic Alliance

When creating international joint venture as a tool to compete in international market, firms need to consider the following factors;

The motive behind entering the joint venture. A firm’s motive needs to align with their partner for an international joint venture to be a success (Buckley & Casson, 2010).

Joint venture life cycle. The joint venture needs to have a timeframe and defined goals to be achieved for it to be a success (Buckley & Casson, 2010).





















References

Dev, C. S., Erramilli, M. K., & Agarwal, S. (2002). Brands across borders: determining factors in choosing franchising or management contracts for entering international markets. The Cornell Hotel and Restaurant Administration Quarterly, 43(6), 91-104.

Trott, P. (2008). Innovation management and new product development. Pearson education.

Buckley, P. J., & Casson, M. (2010). An economic model of international joint venture strategy. In The Multinational Enterprise Revisited (pp. 118-146). Palgrave Macmillan UK.