Reply to Global Strategy Discussion 1 Q – Please read the discussion below and p

Reply to Global Strategy Discussion 1
Q – Please read the discussion below and p

Reply to Global Strategy Discussion 1
Q – Please read the discussion below and prepare a Reply to this discussion post with comments that further and advance the discussion topic.
Please provide the references you used.
Ensure zero plagiarism.
Word limit: 250 words
Discussion
For a company to enter the international market, I believe that there are some neccessary steps to minimize their risk of expantion and increase their chances of success. It start with performing a political, economical, social, technological, environmental, and legal analysis, PESTEL for short, prior to entering the international market, the PESTEL analysis gives a broad understanding of the nature of the interned market and the forces the governs it (Menet, 2016). After the analysis, a strength, weakness, opportunities, and threats analysis, SWOT for short, is performed with regard to the scope of the company relative to the market. Afterwards, a startegy is established on how to penetrate the market and the best form of entry. Unfortunatelly, most companies do not publically provide the PESTEL and SWOT data for entering new market (Lu et al, 2013), however, this is my opinion on the best course of action before entering a new market. For the purposes of this discussion I will choose Sabic, the third largest petrochemcial company in the world with products in almost all international market.
Sabic enjoys a competetive advantage for being close to the world largest oil producer Aramco, which it gets most of its raw materials from at a cheaper than average market price. Using this to their advantage, Sabic can produce high quality petrochemcial products at a relatvely cheap price, then export them to the desired market (Tuncalp & Al-Ibrahim, 1990). In addition to their heavy investment in research and development for their products, Sabic can maintain its competetive advantage and stay a head of the curve in the international market (Alolayan & Richards, 2015). The strategy that Sabic employes for entering a new market is to undercut the competition, to penetrate the market and establish a strong supply chain once the market shows appatite for more Sabic products.
As mentioned above, Sabic employes the cheap raw materials for its petrochemcial products and their industrial knowledge to maintain its competative advantage and produce high quality products for the intended international market. Sabic also employes its political connections by building headquarters and major industrial manufacturing plants in Europe and North America to garner business and political support from the region (Alotaibi, 2015). All in all, Sabic employes a wide range of strategies and tactices to enter international markets by taking advantage of its close location next to the world largest oil producer.
References:
Menet, G. (2016). The importance of strategic management in international business: Expansion of the PESTEL method. International Business and Global Economy, 35(2), 261-270.
Lu, W., Ye, K., Flanagan, R., & Jewell, C. (2013). Developing construction professional services in the international market: SWOT analysis of China. Journal of Management in Engineering, 29(3), 302-313.
Tuncalp, S., & Al-Ibrahim, A. (1990). Saudi Arabia’s petrochemical industry: Growth and performance. J. Energy & Dev., 16, 287.
Alolayan, A. A., & Richards, D. (2015). Internationalization of Chemical MNE Corporation: A case from Saudi Arabian Corporation” SABIC”. In ICSB World Conference Proceedings (p. 1). International Council for Small Business (ICSB).
Alotaibi, H. J. (2015). An assessment of the connection of elements in a strategic plan: A case study of Sabic company. International Journal of Advanced Research in Management and Social Sciences, 4(10), 19-36.

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