Selective Imitation of Compatriot Firms †Free Samples to Students

Question: Discuss about the Selective Imitation of Compatriot Firms. Answer: Introduction: By focusing on the political conditions of Mexico it is analyzed that it has stability. The government of Mexico has introduced many reforms that are based on economic, educational and economic. It is analyzed that reforms help the company to enter the new market (De Villa et al., 2015). In the recent scenario, the competition level has enhanced and also it the environment has brought change and helps to enhance the economy. The reforms that are introduced by the government help to enhance the activities of the organization. The main focus of the company is to maintain proper relations with the countries like Australia (Wang et al., 2016). Stability is also analyzed in the countries like Australia, as it is one of the developed countries. The laws and policies which are imposed by the government have given impact on the retail sector and also on the overall activities of the organization (Hatch, 2018). It is evaluated that Mexico depends more on the US as it is considered as one of the biggest trading partners. The exports are done more as compared to other countries. The banking sector of this country is increasing with the rates that are given as a loan to the individuals. Also, there are agencies who give money to the companies. If the focus is given on growth rate it is analyzed that the growth rate more in 2017 is more than the growth rate in 2016. In the country, the household income of the individual is enhancing and they are spending more on expensive products and services on a routine basis. It is seen that approximately 18% of the population is below the poverty line. The customers who give more preference to the luxury products are always ready to give more or to spend more on purchasing the products or services. Also, it is analyzed that the country focuses on considering latest technologies so that changes can be made effectively. Western culture is more adopted by the cities (Van Rompay et al., 2016). To conduct the activities of the organization, one of the best sectors is telecommunication sector which is considered by the country. By focusing on internet and digital media it is seen that company is in the top 15 countries. Latest technology adopted by the organization helps to enhance the success in the market. Marketing and distribution strategy is considered by the organization so that demand for the products can be enhanced (Shao, 2016). It is seen that Mexico takes an active part in World trade affairs by taking into consideration various forums like NAFTA so that the legal process of the country can be liberalized effectively. At the time of establishing the business, the foreign organizations have many options like joined venture and purchase of shares. To give proper assistance to the company it is important to consider federal law so that labor law can be protected (Laufs and Schwens, 2014). The country is facing various challenges which are related to industrialization growth. One of the negative factors is related to pollution. To manage the issues related with the environment there are various plans which are considered by the Mexico government so that activities can be conducted in a smooth manner. To renew the energy resources the government is focusing on considering the initiatives so that companies can easily achieve success (Vogl, 2014). It is evaluated that there are many changes in the retail sector and it has simplified the process of foreign players to enter the market. Porter five force models will be taken into consideration in this part to evaluate the retail sector of Mexico. There are various competitors in the foreign countries. So, it is difficult to establish the business as more investment is required to conduct the activities of the organization. The companies who have existed in the market have captured a large market share and also it has created a hindrance for the new players to enter the market. The growth of the retail sector is very limited just because of the finance. To establish a new market is one of the costly processes but is seen that Lidl has already created a good market. The supermarket can easily attain the economies of scale as they purchase the products in large quantity (Cameron et al., 2015). The threat of substitution is high in the retail sector. It is seen that there are few market players. It is seen that there are many retail outlets who sell their products easily in a managed form. The products are displayed in a proper manner so that demand can be enhanced. There are also many new players who try to induce the customers so they create substitute product and offer to the customers at a low price. The concept of retail is changed by them only by offering products at a low price (Berardi et al., 2017). The competition is high in the retail sector of Mexico. To induce the customers the organizations, take into consideration innovative strategies like discounts and good services to the customers (Chatterjee, 2017). There are varieties of products offered to the customers on the retail outlet. The organizations that are local have the benefit to sustain in the market. To enhance the competition level in the market it is important to take into consideration the innovative strategies like aggressive advertisements and offers to promote the products (Berman, 2015). In the retail sector, the bargaining power is low as it is seen that it is not possible to differentiate between the retailers. The behavior of the customer is dynamic and they purchase different items where there can get attractive discounts. It is seen that the customers who are loyal give benefit to the suppliers. So, bargaining power is low in the retail sector. Bargaining power of Buyers It is analyzed that for every organization customers are considered as an asset. The bargaining power of the customers is strong if the comparison is made with the competitors. Consumers are ready to purchase new products so that switching cost is high and the products can be easily availed at competitive prices (Giri and Maiti, 2014). The buying decision of the customer is affected by the offers and discounts offered to the customers. So, it is essential for every company to evaluate the activities of the buyers. So, by focusing on the above evaluation, it is seen that Lidl has to face a high level of competition in the country. To minimize the barrier, it is important to take into consideration proper strategies so that competitive advantage can be achieved in an effective manner. There are many companies in Mexico who has a good image and the connection is also good for the customers (Moshiri and Santillan, 2018). It is important to consider proper marketing strategies so that business can be expanded. The company can easily earn profits in the market. There are many foreign companies who enter the market by taking into consideration joint venture. This will help the local players to capture large market share (Smith and Thanassoulis, 2015). The value chain of the company assists to conduct the activities of the organization and also it helps to enhance the image of the company. It focuses on the operations concerned with manufacturing and procuring so that delivery of the products can easily be done. The figure states the value chain process of Lidl. The process of inbound logistics of the company is complex and the products of the company are supplied all over the world. The organization is focusing on enhancing the overall scope of the activities. The organization is making the investment so that the activities related to logistics can be enhanced effectively. It also takes into consideration the initiative's to simplify the supply chain management (Schoenherr et al., 2015). In the distribution system of the company, the products are sent so that packaging can be done properly. Good relation also helps to enhance the value of the company. Through the distribution centers, the customers purchase the products easily. Online sales also enhanced the demand and helped the company to distribute its products. Retailers and wholesalers of Lidl help to add value to the logistic system. The free delivery option is also given to the customers (Surdu et al., 2018). Lidl invests more on the strategies concerned with marketing so that activities can be conducted smoothly. The campaign of products is done so that products can be introduced in the market. The statement of the company is to give surprise to the customers. The products of the company are also promoted through Facebook, , and YouTube. Strong distribution channel of the company is created just because of the various strategies related to digital. There is more marketing strategy that will help to connect the brand with a variety of the products. Lidl is considering both online and offline channel so that sales can be enhanced by the products. The employees of the company offer superior customer service and also has taken into consideration cost leadership strategy so that goals and objectives can be accomplished effectively. The primary activity will help to enhance the value of the overall image of the company. The human resource department of the company emphasizes on the people who are conducting the activities of the organization. The company focuses on the people who are talented and can manage the activities in a smooth manner (Marchington et al., 2016). Training is offered to the employees so that they can manage the activities and can conduct the activities according to the expectation level of the customers. Lidl emphasizes on giving rewards to the employees by analyzing their performance (Bratton and Gold, 2017). Flat hierarchy is considered by the organization and it helps to conduct the activities of the company in a proper manner. It helps the company to operate the activities smoothly. By focusing on latest technology, the company offers attractive services to the customers like pick and packaging services that help to enhance the overall satisfaction level. Through online services also the customer can purchase the product by sitting anywhere. The information is searched with the help of Google analyst that help to increase the demand for the products. Taste and preference of the customer can easily analyze by proper considering the strategy. It will help to enhance the goodwill in the market and also enhances the overall satisfaction level of the customers. The organization emphasizes on enhancing the sales and it is evaluated that most of the suppliers are from British. This states that the suppliers have a good connection or belong from the UK and the products are also taken from other countries and as well from the UK. It is important for the organization to evaluate the market entry at the time of planning to enhance the activities of the business in the international market. There are many methods by which the organization can easily enter the market (Kraus et al., 2015). The organization can take into consideration various methods to enter the market. It is important to choose one of the best methods so that the company can easily enter the market (Fong et al., 2014). To enter into Mexico, it is seen that company should focus on the modes of entry so that business can be established in a proper manner. There are some entry modes that are elaborated below: There are many advantages of a joint venture in Mexico that can be implemented on Lidl. It is seen that organization does not require stressing about the lack of knowledge of local market (Xie and Li, 2017). The organization can consider the local market so that image can be enhanced in Mexico. By focusing on joint venture it is seen that delivery of services can be handled easily (Hernndez and Nieto, 2015). It is important that the people involved in the business should take care of after sale services. It is important that company should provide proper training to the employees so that the activities can be conducted managed form. The joint venture is considered as a cost-effective method as it emphasizes on enhancing the overall quality standards. Lidl can easily offer the products to the customers in Mexico. The major factor is related to service delivery. The products can be given to the customers by focusing on online and offline mode. After sale service can also be a major issue so it is important to take corrective steps in a proper manner so that activities can be conducted smoothly. This is one of the methods of enhancing the business on the international platform. This method can be taken into consideration by the company to enter the market. In this method, the organization has to make a proper agreement with the large companies and the products can be sold by considering the trademark. It will assist the company to evaluate the new consumers and market in an effective manner (Hussain et al., 2018). In this method, the organization can face problems just because of the lack of knowledge about the legal procedures. Also, it is seen that company should conduct the activities according to set policies and rules that can be considered in the innovative process. So, by the above information, it is analyzed that joint venture can be one of the best options that should be taken into consideration by the company to enter the market. If company take into consideration the method of joint venture then it can be easy to achieve the overall benefits and opportunities prevailing in the retail sector. Conclusion It is analyzed that every organization should evaluate the market so that expansion can be made on the international level. Mexico is one of the best countries for the organization to expand its business. Also, it is evaluated that joint venture will be the best option to enhance the overall activities of the organization. References Berardi, N., Sevestre, P. and Thbault, J., 2017. 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