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11Alexandr11 [23.1K]
3 years ago
6

XYZ Company wants to be prepared for the ASEAN free trade area. The company plans to develop its own production and marketing fa

cilities in one or more ASEAN countries. The best choice for XYZ Company is
a joint venture.
b. a licensing agreement.
c. totally owned facilities.
d. exporting.e. sales offices
Business
1 answer:
ruslelena [56]3 years ago
4 0

Answer:

The correct answer is C

Explanation:

Totally owned facilities are those facilities which has its own production as well as the marketing facilities in one or more than one foreign nations. It is an example of the direct investment.

So, the XYZ company need to prepare for the ASEAN free trade area and plans for developing own facilities of marketing as well as production in one or more than one countries of ASEAN.

Therefore, the XYZ company is the company which is totally owned facilities.

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Answer:

Yes they are sustainable

Explanation:

The strategies mentioned in the question were laid out my Michael Porter and therefore, we can look analyse his model to understand whether these strategies are sustainable or not.

Porter has categorized strategies into 3 broad categories: Cost Leadership, Differentiation, and Focus strategies (all three are known as "Generic Strategies). Focus strategy is branched out into two sub-segments known as Cost Focus and Differentiation Focus.

Now, the question has already clarified that the strategies in question are both focus strategies. So lets understand what each entails.

Differentiation Focus: A strategy in which the company aims to gain market leadership in a focused market (a specific market) through strategic differentiaion. This strategic differentiaion involves offering a specialized service or a unique product in a niche market. Cost focus strategy is similar in the sense is that that the aim is to offer highly low cost products/services to a niche market. Because of the focus on these niche markets, company's develop a strong understansing of the consumer thereby developing strong brand loyalty with that particular customer base. The key ingredient, again, is that the competitive advantage is being harnessed by focusing just on a particular niche market. Another key component is that the companies using this strategy rely on the consumers in the target market having different needs, tastes, and requirements than consumers in other segments in the industry.

Now, these strategies by desig were put forth my Porter has being sustainable. Hence the term "generic strategies" in that they can be broadly used to create and sustain performance. The focus strategies as defined above are sustainable since they harness the power of having priority knowledge of their target market to provide appropriate services and products. The high brand loyalty and knowledge of consumers give them an edge over competitors (competitive rivalry). Supplier power depends on the nature of products being offered therefore it cant be taken into consideration. Buyer power can be managed since you are prodiving unique service offerings to unique customers. Threat of substitution depends on the product and service offering. Threat of new entry by larger player exists, but due to the focus that the company had in the target market, barriers to entry (long strong brand loyalty) can be developed.

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