1. You are required to recommend and discuss FIVE policies to protect and support the local companies in your country.
2. You are required to suggest and critically discuss FOUR strategies that can enhance the capacity of firms in your country to succeed in global markets.
Introduction
The report throws a light on analysing the different kinds of determinants of the national competitive advantage. The different kinds of prospects for the local companies in the emerging markets which is wished by them to survive against the entry of the global giants. The country that is taken in this regard is Kuwait country in which proper and accurate five policies to support and protect local companies in the Kuwait country has to be analysed and identified. Lastly, the critically discuss the strategies has to be analysed which helps in enhancing the capacity of the firms in the Kuwait country which will help them in succeeding in global market.
1.Recommend Five Policies to Protect and Support Local Companies in Kuwait
In order to support the local companies in Kuwait, this is essential in nature to understand the different moves which are being made by the competitors in the respective country.It has been seen that the multinational companies find different opportunities for their growth and this creates boon for the customers in the market. However, for the local companies, the influx is the death sentence as these companies are not being able to compete with the global giants and this affects the entire productivity of the organization as well(Salavou 2015).
Furthermore, this has been seen that the big global giants are accustomed with the dominant position in the market such as providing superior products along with technological advancements as well. These kinds of skills of foreign markets makes the survival of the different local companies at stake(Leonidou et al. 2015).
In order to improve the position of the local companies against the global giants, this is necessary to introduce different policies which are essential in making them more competitive than the global giants. It has been seen that local companies in Kuwait has suffered a lot due to the global giants who are playing an essential role in grabbing the entire market and the market share to gain the profitable market share of the company positively without much complexities.
The five policies which can be adopted to support the local companies in Kuwait country are as follows:
Firstly, lowering the tariff barriers is one policy that can be adopted as to support the local companies in Kuwait as this will lead to trade creation. This has been seen that by reducing the trade barriers, the consumption switches from the high cost producers to the low-cost producers and this will benefit them in becoming more competitive in nature as well. Furthermore, in reducing the tariff barriers, the local companies can expand their business to other companies and this will improve their position in the market(Rothaermel 2015).
Secondly, the competition policy is the other policy which can be adopted to support the local companies in order to promote the competition among the different localised markets as this will enable in developing competitive environment(Kumarand Pansari 2016).
There are two parts of the competition law in which this has been seen that this will restrict anti-competitive market conduct which helps the local companies in providing the authority to the local companies to become more competitive in nature.
With the help of the competition policy, the local markets will be gaining huge profitability as this will be helpful for them to sell the same kinds of products like the global giants at a lower price and this assists them in becoming more popular in the entire market.
Thirdly, the government regulations of Kuwait will be helpful for providing support to the local companies in Kuwait. It has been seen that the local companies are not in a position to be more competitive in nature than the global giants and this is affecting the profits and sales of the company in a negative manner as well(Daniel 2015).
With the implementation of government policies, local companies will be able to sell the different products in the local market at a cheap rate in comparison to the other global giants in the market.The government policies will be helpful in imposing the tariff taxes on the foreign goods and services and this will be beneficial for local markets or companies in Kuwait(Hubbard,Riceand Galvin 2014).
The government regulations help in reducing the different taxes which can be beneficial for the local companies as this will become more competitive in nature against the other competitors in the market (McGraw-Hill Education.Hollenbeck, Noeand Gerhart 2018).
Fourthly, the anti-dumping law and policy can be adopted by the local companies to perform better than the other competitors in the market. It has been seen that the global giants gain the competitive advantage while entering into the domestic market and sell the goods and services in competitive pricing to the customers (Hill 2017). Due to this, the anti-dumping duty is the tariff domestic government imposes on foreign that makes the price fixed and this will help the local markets to be more competitive advantage (Olson et al. 2018).
Lastly, the local production policy in which this has been seen that when the foreign companies market and sell their products in the local markets of Kuwait, this has been made mandatory in nature to provide a percentage of the goods which are sold by the company to the local markets in order to gain more competitive advantage in the market (Mankasingh and Ramsoomair 2017).
With the help of the local production policy, this has been seen that while the foreign markets enter the local market in any country, then a part of the portion is required to be adopted by the localized country which will help them in managing the differences in an effective manner (Belton 2017). The local production policy in Kuwait will act as an advantage as this will be helpful in attracting the entire market effectively without much difficulties.
These are the different five policies which are required to be adopted by the local markets in managing the different kinds of competition which has been generated form the other global giants in the entire market. With these policies, the local markets will be receiving huge support for them as to compete with the other competitors in the market and this will be beneficial for the local companies to analyse their weaknesses and solve them accordingly as well (Hill, Jones and Schilling 2015).
2.Recommendation of Strategies to Enhance Capacity of Firms in Kuwait to Succeed in Global Markets
Therefore, this can be recommended that there are different strategies which can be adopted by the local markets as to succeed in the entire global market. Proper recommendations are essential in nature for local market as to understand their position and gain some knowledge from the global giants to become as successful as them. The different strategies that can be recommended for the growth and enhancement of the firms in the global markets are as follows:
Firstly, market participation is the essential strategy which is required to be adopted by the local company which will be beneficial for them to gain a significant share in the global major market. As per, Hill, Jones and Schilling (2015), the market participation helps the local companies in understanding the selling behavior of the global sellers and this has helped the local companies to gain the competitive advantage. It has been seen that when the local companies will be increasing their presence in the entire international or foreign market, this will provide them with various opportunities to sell their products to their customers and this will provide them with different alternatives to grow steadily without much complexities.
Secondly, the product offerings have to be increased by the local markets is the second strategy in which this was seen the products sold by them are fully standardised in nature in the entire worldwide. Olson et al. (2018) has tried to hypothesis that the local companies needs to offer the various products at a lower price which will help them in attracting more customers without much difficulty. With increase in the product offerings for the individuals in the competitive market, this has been seen that the local markets will be gaining more sales and profitability in the economy. The offerings of the products which will be done by local markets has to be cost effective as this will attract more customers in the market.
Thirdly, new product innovation and development is the third strategy which is required to be adopted by local market which will improve the overall productivity of the organizations effectively. Belton (2017) has commented that new product innovation is essential as this will help in developing the products by the local companies in comparison to the global brands and this will assist them in gaining more advantage. With proper and accurate innovative strategies, the local companies in Kuwait can gain competitive advantage and this will help them in overcoming competition in the market as well. Furthermore, there are different competitive moves which can be adopted by the local companies as to increase the customer relationship management effectively.
Lastly, providing value added activities is required to be adopted by local markets in Kuwait as to be more competitive than the global companies or giants. The valued added services can help the local markets to ascertain needs of the individuals and try to provide the customers with such valued added services and products in the entire market in an efficient manner. Hill (2017) has opined that the value added services attract more customers and this will benefit the local markets of Kuwait as they will be delivering value added services at a lower rate along with high and premium quality as well.
These are the different recommendations and strategies which can be adopted by the different local companies in Kuwait as this will assist them in becoming more competitive in nature and improve their position in the market as well. With the help and implementation of the respective strategies, this will be beneficial for the local market in Kuwait to understand the tastes and preferences of the customers and provide the similar kinds of foreign goods and services to them at a lower price than the global giants. Finally, these recommendations can be adopted by them to be successful in this venture along with implementation of the respective policies as well
References
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