Analyse the global supply chain of the company Essay

Analyse the global supply chain of the company - Essay Example As per the five forces analysis, there is intense competitive rivalry present within the industry along with high bargaining power of suppliers. The core competency of the firm is its high quality product with exceptional customer service. According to game theory, the company can gain temporary advantage through focusing on unique selling proposition and staying aligned with customer demand of Lithuania. Dunning’s Eclectic paradigm is such theoretical framework that helps to define competitive advantage gained by a company. It states that monopolistic advantage supports a firm operating abroad to overcome prevalent disadvantages in foreign markets. There are two forms of advantages as per this paradigm such as location advantage and ownership advantage. Learning theories highlight psychic distance paradox as proposed by Lane and O’Grady. According to this theory, there exist some features in host country and operating country which facilitates business operations or re sults into complete failure (Ulwick, 2005). On the other hand, network theory indicates that commitment and trust are critical aspects for achieving success and growth. Learning and trust are further complimented by commitment, risk, control and uncertainty. Figure 2 clearly states that there are four kinds of strategy which can be chosen by a company in terms of business strategic implementation. As per figure two there are four strategies based on local responsiveness pressure and cost reduction pressure. They are global standardization strategy, transnational strategy, international strategy and localization strategy. In case of Starbucks the best strategy which can be incorporated is internationalization strategy. This would enable the firm to expand over larger geographical area and acquire high profit margins. International strategy is all about implementing best possible strategy to establish a strong market position in foreign country. The four possible international