or operations. Moreover, the uses of control mechanisms are important to increase the success rate. By implementing this strategy ABC Electric will be able to compete effectively with its competitors within the industry base on price thereby improving its profitability and market share. Start making welders for the auto industry should be the first strategy ABC implemented. The base of my argument lies in the advantage they would have to be the first mover with such a product. For example, if this action is successful then the company will have above-average returns until other competitors are able to respond effectively. Moreover, with ABC being the first mover they will have the opportunity to further build on customer loyalty, thereby making it difficult for responding firms to capture customers. However, potential disadvantages may result from being the first firm to initiate a competitive action. First among these are the risk taken by first mover. The risk is high because it is not easy to predict the amount of success a particular competitive action will produce prior to its initiation. Oftentimes, first mover has high development costs.ABC Electric, base on the recommendation of the strategic planning committee on entering the Western European market where there is a market growing at an average rate of 10% can solve the basic problem of reduction in market share. Although, there are three other competitors in that market ABC can form strategic alliance with the French firm Destang whereby sharing the risk and profit. ABC with its impressive record of quality to customers can bring that same philosophy to this firm as a result creating success. By exercising trustworthiness between the two firms will create a winning formula. Furthermore, by implementing this strategy ABC will be able to enter a new market without employing large amount of capital. Global Market Entry ModeIn looking at t...
