DUMPS
BASE
EXAM DUMPS
CIPS
L6M2
28% OFF Automatically For You
Global Commercial Strategy
, 1.SIMULATION
Describe 5 strategic decisions a company can make and how these decisions could
impact upon competitive advantage.
Answer:
Five Strategic Decisions a Company Can Make and Their Impact on Competitive
Advantage Strategic decisions shape a company's direction and influence its long-
term success.
Below are five key strategic decisions and their impact on competitive advantage:
2. Market Entry Strategy
Decision: A company decides how to enter new markets (e.g., direct investment, joint
ventures, exporting, franchising).
Impact on Competitive Advantage:
ly
? Global Reach: Expanding into new markets increases revenue streams and reduces
ck
dependency on a single market.
ui
Q
? Risk Mitigation: Entering via joint ventures or alliances can reduce risks related to
m
market unfamiliarity.
xa
? Brand Positioning: Choosing premium vs. cost-leadership entry strategies can
E
r
establish market dominance. ou
? Potential Risk: Poor market research can lead to financial loss and reputational
Y
s
damage. Example: Tesla entering China through direct investment in Gigafactories to
as
strengthen its supply chain and reduce production costs.
P
to
)
3. Supply Chain Strategy
02
8.
Decision: Whether to adopt a globalized, localized, or hybrid supply chain model.
(V
Impact on Competitive Advantage:
ps
? Cost Reduction: Strategic sourcing from low-cost countries lowers production
um
expenses.
D
? Resilience: A diverse supplier base reduces risks of disruptions (e.g., geopolitical
2
M
risks, pandemics).
L6
? Speed to Market: Nearshoring strategies improve lead times and response to
S
demand fluctuations.
IP
C
? Potential Risk: Over-reliance on global suppliers can lead to disruptions (e.g.,
semiconductor shortages).
Example: Apple’s dual sourcing strategy for chip manufacturing (Taiwan’s TSMC +
US-based suppliers) improves resilience.
4. Innovation and R&D Investment
Decision: How much to invest in research and development (R&D) to drive product
innovation.
Impact on Competitive Advantage:
? Differentiation: Unique and high-quality products create strong brand loyalty (e.g.,
iPhones, Tesla).
BASE
EXAM DUMPS
CIPS
L6M2
28% OFF Automatically For You
Global Commercial Strategy
, 1.SIMULATION
Describe 5 strategic decisions a company can make and how these decisions could
impact upon competitive advantage.
Answer:
Five Strategic Decisions a Company Can Make and Their Impact on Competitive
Advantage Strategic decisions shape a company's direction and influence its long-
term success.
Below are five key strategic decisions and their impact on competitive advantage:
2. Market Entry Strategy
Decision: A company decides how to enter new markets (e.g., direct investment, joint
ventures, exporting, franchising).
Impact on Competitive Advantage:
ly
? Global Reach: Expanding into new markets increases revenue streams and reduces
ck
dependency on a single market.
ui
Q
? Risk Mitigation: Entering via joint ventures or alliances can reduce risks related to
m
market unfamiliarity.
xa
? Brand Positioning: Choosing premium vs. cost-leadership entry strategies can
E
r
establish market dominance. ou
? Potential Risk: Poor market research can lead to financial loss and reputational
Y
s
damage. Example: Tesla entering China through direct investment in Gigafactories to
as
strengthen its supply chain and reduce production costs.
P
to
)
3. Supply Chain Strategy
02
8.
Decision: Whether to adopt a globalized, localized, or hybrid supply chain model.
(V
Impact on Competitive Advantage:
ps
? Cost Reduction: Strategic sourcing from low-cost countries lowers production
um
expenses.
D
? Resilience: A diverse supplier base reduces risks of disruptions (e.g., geopolitical
2
M
risks, pandemics).
L6
? Speed to Market: Nearshoring strategies improve lead times and response to
S
demand fluctuations.
IP
C
? Potential Risk: Over-reliance on global suppliers can lead to disruptions (e.g.,
semiconductor shortages).
Example: Apple’s dual sourcing strategy for chip manufacturing (Taiwan’s TSMC +
US-based suppliers) improves resilience.
4. Innovation and R&D Investment
Decision: How much to invest in research and development (R&D) to drive product
innovation.
Impact on Competitive Advantage:
? Differentiation: Unique and high-quality products create strong brand loyalty (e.g.,
iPhones, Tesla).
