International Business and the Regions
How far has the competitiveness of two East Asian firms been based on: (1) national networks and institutions, including localised clusters; (2) regional links and networking across the East Asian region; (3) transnational links beyond the East Asian region and; (4) support from the policies of one or more East Asian governments?
Over the last several decades, globalization has been having a tremendous impact on the way many corporations are interacting with customers. Part of the reason for this, is because of advancements in technology and a liberalizing of trade barriers have caused commerce to increase. As, corporations are seeking out those areas, where they can: introduce new products or services and be able to capture as much of the local market as possible. At the same time, they are looking for regions that can help to: reduce their labor costs and import the finished products to various markets around the world. This is significant because, it is showing how a transformation has occurred with the way many businesses are interacting with consumers.
As a result, the competition in many developing markets (i.e. Asia) has become very intense. This has caused many local firms to face increased amounts of competitive pressures. Evidence of this can be seen by looking no further than observations from Chernuniliam (2008) with him writing, "There have been large numbers of takeovers of national firms by foreign-based corporations. In some of these cases, these domestic firms are driven to a situation of having to: hand over the majority or total equity (of their business) to foreign partners of joint ventures. This is because of the inability of domestic partners, to bring in additional capital or other issues. As a result, the replacement of traditional and indigenous products, by modern merchandise is leading to the ruin of conventional craft industries along with the livelihoods of the people in these sectors (for many developing countries)." (Chernuniliam 2008, pg. 90) This is important, because it is showing how competition has become so intense in local markets. That, it is leading to a consolidation of many nationally-based firms for the benefit of foreign corporations.
In the case of Asia, the region has been experiencing tremendous amounts of growth due to: the size of the various economies and the above average development many areas are experiencing. This has a caused a number of firms to begin focusing on these markets as a way to increase their overall profit margins. (Das 2005, pp. 1 -- 12) To fully understand how these changes are occurring requires comparing East Asian firms and the impact that it is having on their businesses. This will be accomplished by looking at: Acer and Hyundai. As, we will be focusing on a number of different factors to include: examining the national networks / institutions, regional links / networking, transnational links beyond East Asia and the support that both entities are receiving from various governments in the region. Together, these different elements will provide the greatest insights as to how globalization is impacting the way the two organizations are conducting business.
National Networks and Institutions
Both firms have tremendous amounts of national networks and operations throughout the region. Over the last ten years, they have been increasing their marketing efforts in a number of economies that can provide them with above average growth to include: Taiwan, China, South Korea, Singapore, Indonesia and India. This is allowing the two corporations to diversify their businesses away from the more traditional consumer markets of the past (i.e. North America and Europe).
Acer is focused on: the production and sales of various computers / electronics devices. Some of the most notable include: desktops, notebooks, tablets, LCD TVs, digital cameras, portable hand held devices and monitors. At the same time, the company is also involved in the delivery of various IT consulting services to corporate customers. Since 1985, they have been focused on developing a presence in those economies that have the potential for long-term economic growth. This led to the opening of a major operations center in Japan during that year. As time has gone by, Acer focused on rapidly expanding into other areas including: China, South Korea, India and Taiwan. The basic strategy that they are using in these localized areas is: to establish facilities that will support the demand of domestic and international customers. This accomplished by building major manufacturing and support facilities that will produce as well as provide these services cost effectively. As a result, the national...
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