Skip to content

International strategy

1. Our environment are changing

1.1 Our world are changing!

Links:

Resume first video: This video is forwarding us in 2050, and the narrator is showing us what changes impact the delivery business (social, technology, environment, etc.) in multiple scenarios.

The first scenario appears to be stress full, a lot of technical terms are used to scare and show the gravity of the situation. They talk about massive consumption, climate change, natural resources shorten.

The second scenario pushes us in a greener future. Indeed, the nature looks to be in the center of our cities, on the roof of the skyscrapers. This system allows us a maximum of communication and co-operation. On the other hand this point of view showed us the abandonment of the rural areas. In the same way as the previous scenario the technologies allow us to optimize and accelerate the transport of people and goods.

Then, in the third scenario, the world look to me more responsible, the creator, maker and consumer are the same person. It produces less waste of matter and energy. The growth of recycling intention preserve the planet for exploitation. In this scenario, a contrary, of the first and the second one the transport look less important, the goods are self-made for a large pot and did not far away with recycled material for the other part.

In this one the world is darker, countries look hostile. The goods are constantly blocked at the border. The reduction of natural resources pushes us to war and violence. The transport is blocked and the situation looks frozen.

Last but not least, nature and weather conditions force us to rethink our process. We had to adapt our supply chain and reactivity to ensure productivity.

As a conclusion, this video shows us many possibilities for the future and pushes us to think which one is most likely to happen with the best benefits for us and for the nature. As we have seen all these scenarios are showing us how the delivery business can adapt.

Resume second video:

The start of this video is assuming the world population at 8 Billion in 2025; and linking different changes with some positive and negative aspects.

Indeed scarcity of petrol, water and rare metals pushes us to develop new energy sources as geothermal, solar or wind-driven. Moreover, green living and recycling are important to maintain the world as we know it.

During this short movie we are perpetually put a face to known or future problem and asked to find a real applicable solution.

A lot of topics are brought to the table and it shows us that we don't have all the solutions.

The last sentence of this video is "The world is changing so are we", it's a powerful statement to say "Hey, the world is not waiting for you, if you want to take part you have to get involved!"


1.2 Sustainable development

Link : L'histoire des choses (VOSTFR)

Please explain the mains points about linear or circular system?

This video is mainly opposing two consumption systems: "the linear system" and "the circular system".

In the books we can find this definition for **the linear system: ** Things move to the extraction, to production, to distribution, to consumption, to disposal; but it appears that some pieces are missing.

The main problem is the resources shorten, and overflow of trash, but is there other issues.

One of them appears to be the people, for the commonest and easiest reason, the MONEY !!.

Running out of natural resources is a real thing, and developed country count more on the natural exploitation than on recycling and responsible actions.

The storyteller is making a trial of capitalism as we know it, the leaders and decision-makers aren't taking care of the planet or the people. The only want production, resources and among all money.

Then for production purpose, we're mixing taxis with our natural resources to make goods, food and other gadgets. And we all these toxins are not eliminated, they are surrounding us, everywhere. Of course without knowing any consequences on our health or environment.

It's not only resources we are wasting but also human lives. Hundreds and Hundreds of people are forced by poverty to work and live in the hostile and toxic environment. And all thesis production leads us to pollution.

Then we face the next step of the linear system, the distribution. Selling disposable things and nutrient-poor food at low costs makes a lot of profit for the companies. Theses costs are made by underpay workers, use low-cost and bad raw materials, and especially the pollution and destruction the linear system is making.

All this system can stand because of consumers, the system encourages people to buy things they don't need and they will probably never use, it pushes populations to eat fat burgers made out of reconstituted-meat and drink litters and litters of soda filled with sugar.

To accurate the consumption two points are really important.

First the Planned obsolescence, products of all types are designed to be useless or obsolete rapidly.

And then the Perceived obsolescence, lead us to throw our brand new product that it still works. This method is mainly based on the way we look at products. Their design pushes us to think that is useless.

And finally, the cornerstone of this system is obviously advertising. It makes us think that buying will make us happier. Advertising makes it possible to maintain this system of consumption.

And what happens to all theses things we are throwing at the trash? It's burned and buried, contaminant water, air and the ground.

So, what about recycling?

Recycling is the first step to "the circular system". It reduces extraction of natural resources and reduce the garbage. Not only the consumer has to recycle, but all the factories too ! But recycling is not enough. Indeed a lot of product and material are not recyclable because of their design or their toxicity.

But as we can see, a solution is found, cleaning and protecting the forests, encourage clean production, fair trade, responsible consumption, etc.

And with all these changes we can figure out what is the circulatory system. This system is identical to the precedent except for that decision-makers are the people. The garbages are reduced and the productions are clean. In this system, all the products out of live can be reused, recycle or cleanly destroyed.

This system is not this hypothetical, involved people can make things change.


1.3 Blue ocean strategy

Link : Make the competition irrelevant: BLUE OCEAN STRATEGY

Beating the competition is not the only or best way to success.

Today market strategy is based on Red Ocean Strategy, basically if you want to succeed in a market, you have to saturate this market with low-cost and non-green product.

Instead, if you bet on an unexploited market, you will surely increase your chances for success.

According the researches of W. Chan Kim and Renee Mauborgne, blue ocean businesses are more likely to produce benefits and last longer.

In the example of "Casella Wines" use of blue ocean, we observe that as a wine new brand they didn't focus the wine market but adjacent market. They proceed to first ask non wine drinker some questions and studied what came out of this poll. With these output they have created a wine without all the inconvenient mentioned by the non-wine-drinker. All this while continuing the production of a high quality classic wine. This wine leads them to create their own market.

As we can see they managed to act on 4 points:

  • Elimination of useless costs,
  • Reducing the production to 2 wines (one white, one red)
  • Raising of the taste,
  • Create a new market with adjacent market consumers,

Both of the first point lead them to reduce final prices and increase appeal to non-wine-drinkers.

By creating their own market, they avoid competitor to steal their market.

To put it in a nutshell, to create your own blue ocean market, you have to focus on consumer frustration and answer those 4 points: Eliminate, Reduce, Raise, Create; to attract new customers.



2. Why International strategy?Ways to expand your business?

2.1 3 Questions in a international context

Link : The Strategy of International Business


2.2 Ansoff Matrix ( Development)

Link : The Ansoff Matrix

The Ansoff matrix allows you to classify growth strategies. We mainly have 4 strategies based on actual and new products and markets:

  • Product development (actual market, new product)
  • Diversification (new market, new product)
  • Market Penetration (actual market, actual product)
  • Market Development (new market, actual product)


2.3 International strategy organization

Link : International Strategy

To face with social and cultural differences companies has be adapted their product to their customers. To adapt it production they can count on three main international strategies.

The first one is the "Multi-domestic" strategy. This company customizes production, services and operations to fit the customers and worker in each target country. Indeed, this world wide company appears to the people to a country-sized company. The same product can be sold in different countries by adapting it to the local culture an social standards. For example Danone became a world leader by adapting the product to the target market, dependently on the country you buy a Danone it would not have the same taste, texture or components.

The second one is known as "Mega-national", it is based on economies of scale and massive sales. These kings of company see the world as a big country, they produce only one product but at low cost. This low cost is getting by strategically choosing the best place for a part of the production. A part of the product is built in the most efficient place, for example, they can choose USA for low costs of energy, Indonesia for labor costs and India for services and support. But of course, this strategy is not completely inconsistent with the first one. Indeed, those companies as to adapt their products to norms and laws.

And last strategy is to be a "transnational" company. At some point it looks similar to the president's strategy. First, they borrow the global product to the Mega-nationalist system, indeed they develop a product for all the target countries independently from the culture. But those companies allow the local subsidiary to adapt presentation, advertisement and name to improve the appeal to local people. Here is the likeness with "Multi-domestic".


2.4 PESTEL Analysis before international expansion

Link : PESTLE analysis

The PESTEL scheme aim is to list different impact of for an industry or a product.

PESTEL stand for:

  • Political impact on business
  • Economic impact as profitability
  • Social as trends
  • Technological as logistics
  • Environmental as ecological impacts
  • Legal as county laws


2.5 4P’s Marketing

Link : The 4 Ps of The Marketing Mix Simplified

Product: quality, packaging, design, brand Price: retail price, discount, payment plans, credit terms Promotion: advertising, personal selling, public relations, emails Place: retail location, delivery, downloads, distribution

One you have chosen your product, you need to know your target market. Based on your target market, you now have to adapt the 4P's to fit the market.


2.6 7P’s Marketing

Link : What is Marketing Mix, 7P's of marketing


2.7 SWOT analysis

Link : Business strategy - SWOT analysis

The world SWOT stand for:

  • Strengths (Forces)
  • Weaknesses (Faiblesses)
  • Opportunities (Opportunités)
  • Threats (Menaces)

With the SWOT framework you can easily analyze products, industries or people.

By listing the strengths and opportunities you can develop a new product ton conquer a market.
Weaknesses are things that need improvement, once the weakness listed you have to get involved in finding a solution to beat them.
Then threats are external environment element. If you identify threats it's getting easier to fight them.