Strategies for competitive advantage in the global environment
. New trends of
marketing arose in the 1990s that were more competitive than ever included the Internet,
experiential, community, real-time, and application-based smart mobile media (Wilson &
Grant, 2013). The twenty-first century has been an era of increasing globalization, and
the advances in technology, transportation, and communication resulted in the spread of
business ideas, knowledge, and information (Terkan, 2014). Gummesson (2002) added
that the Internet network infrastructure allows consumers to send and receive
information. Aldhaheri, Abdulrahman, and Bach (2013) indicated the Internet has
provided a more convenient and less expensive way of the interaction of individuals with
each other including consumers and businesses. In addition, the Internet has made the
avenue of unbound communication for Internet users easily accessible for group
environments to share in conversations that document negative or positive discussion that
might affect a business sale of products or services (Aldhaheri, Abdulrahman, & Bach,
2013).
Since the introduction of globalization and the Internet, business leaders must
focus on developing strategies to positioning their brand outside the domestic market.
Amazon.com is a successful global Internet-based business that has earned over 34
billion dollars in revenue from implementing the blue ocean strategy with the idea of
selling books online (Chandrakala & Devaru, 2013). According to Chandrakala and
Devaru (2013), Apple is another successful global business that used the blue ocean
strategy. Sashi (2012) indicated that digital marketing and the advent of the Internet have
led to organizational leaders building close relationships with customers and influencing
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how many organizations market their business to a target group of customers. Marketers
can avoid boundary stretching by using new media introduced to the marketplace such as
YouTube and Facebook if the new media provides an outlet for distribution of content
that does not comply with regulatory codes (Parsons & Schumacher, 2012). Therefore,
the Internet emergence has allowed marketing to change from conventional media to
online marketing due to the characteristics of low cost, flexibility, and interactivity (Jiang
& Wei, 2012). Furthermore, information and communication technology changes the
nature of the competitive environment externally, by serving as a prerequisite for the
survival of the business (Junarsin, 2012). Anderson et al. (2013) determined the Internet
could be worse than word-of- mouth because social media allows a customer to share
negative experiences with thousands of people.
A company looking for growth opportunities can quickly gain a competitive
advantage by entering markets that have market-driven firms and self-regulation;
however, competitor oriented market-driven firms should enter markets with regulatory
protection from Government (Parsons & Schumacher, 2012). Samuelsen and Olsen
(2012) asserted managers interested in growing their organizations should include brand
extensions and not brand alliances as a marketing strategy because brand extensions
outperform brand alliances. To maintain the competitive advantage in the post-modern
arena, companies should invest heavily in co-developing a positive brand identity from
members of the online brand community (Wang, Butt, & Wei, 2011).
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