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Industry Computers industry Routine household products like fan, motor pumps, wet grinder , mixers et Industrial products like machine tools Project marketing ie large complex equipment Governmental projects / contracts

Key success factor Technology leadership and new product introduction Product performance, choice Product performance, delivery and after-sales services Technical consultant and mechanic – key influencers Decision-maker ie. the authority is concentrated with one person who may or may not understand all the nuances of technology improvements or of new designs of products

Michael Porter’s Five Forces Model Strategy Risk of entry by potential competitors

Bargaining power of suppliers

Rivalry among established firms

Bargaining power of buyers

Threat of substitute products

NATURE OF INTERNATIONAL OPERATIONS MANAGEMENT Globalisation – a wide canvas for the business organisations to paint upon Aspects to be carefully analysed before globalisation 

To face world-wide competition

Focus – ie. who is our customer? What services does he need and/or expect?

Depending upon the market segment chosen, the basis for competitive advantage for the organisation has to be chosen

Technology – Choice

Location – Where will the organisation’s presence be and in what form?

Orientation : o If it is Product orientation, few facilities can produce the entire worldwide requirement 18

unit 1  

production

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