Steps in Global Strategy Formulation
Any business must come up with a marketing strategy before getting into a new market. This strategy is usually a part of the strategic planning process. For international business people, making an international marketing strategy is significant to the success of the business in global markets specifically in increasing the effectiveness of launching a new product, minimizing expenses and increasing market share and product quality. Strategy formulation involving coming up with the perfect lend of ideas and the correct actions that are geared towards achieving the business objectives and organizational ambitions, thus realizing the business vision (Michael, 1980). Strategy formulation is a process involving four major steps, which must not necessarily occur chronologically. These steps can simply be executed in this order:
Assessment and Adjustment of Core Strategy.
This involves market analysis and competitive analysis. A company must know who its customers are, their tastes and preferences, their kevel of income and other factors that may affect consumers’ purchasing power. Competitive analysis is also another facto here, where the business must know its competitors and find pout the business strategies used by its competitors. The business should also perform internal analysis to ensure that they have what it takes to penetrate the global markets.
Formulation of Global Strategy
This involves coming up with a Competitive Strategy to compete with its competitors using aspects like price wars, advertising, etc. The choice of target countries and market segments will also come into play here. The business must segment the market and ensure that it supplies to the perfect market segment. For instance, a company specializing in beef can not target India. While a company selling sweaters can target an area with cold climate.
Development of Global Program.
This is formulating the path to follow in the implementation of the steps involves. It involves deciding what comes first, then followed by what?
This step involves the organizational structure and management of the company. The company must have effective leadership which will use various tactics and analyze the firms SWOTT analysis (Frank, 1999).
2) Why Abu Dhabi is proceeding with Masdar Energy City plan.
Masdar, which means the Source in Arabic, was established in 2006 as a proof of the feasibility of sustainable cities. The Company behind the Masdar project, The Abu Dhabi Energy Company, believes that this is a new path for international energy generation and use of sustainable energy sources. Masdar is made to fully operate on sustainable energy sources. Its architectural design is built to suit the objectives of the company. Sultan Al Jaber, the CEO of Masdar, claims that Masdar Energy City supplies its own energy and resources. Jaber says that the sustainable environment that once existed in the past will re-exist and create a solid city (DiPaola, 2010).
In the Abu Dhabi International Airport, new job opportunities will be created to employ at least 100,100 citizens. Initially, the City must come up with a high-tech power plant that has the capacity to supply all the energy needed for the construction of an entire city. The solid, eventual city will not have cars that will pollute the environment with harmful emissions. This model is geared towards ensuring zero environmental pollution through zero waste and zero carbon emissions. Consumption of fossil energy will be minimized by almost 80%, water supply by 300%, and waste creation by 400%. The only means of transport will be cycling and walking. Shops and shopping malls will be increased to reduce travel distances. Other cities and the airport will be connected by a light Railway Transport system. The airport will eventually be the center of the city.
The city will also implement digitally smart monitoring systems of the use of energy in the city and the carbon emissions in public areas. There will be sensors and other data mining systems that will give immediate feedback that will enhance the decision making process of service providers. Research centers and other institutions of higher learning, such as the Masdar Institute of Science and Technology, will ensure that there is a breakthrough of this science knowledge to the entire community. These institutions will focus on science expertise and international technology, which are geared towards highly developed energy and sustainability. Thus the city will solve the most difficult problems facing humanity; unsustainable energy supply, unreliable climate and poor human development (Masdar, 2012).