A Third Leg In The Strategy Tripod Commerce Essay

A Third Leg In The Strategy Tripod Commerce Essay In recent times strategy has become a major and significant part of international businesses (IB). A strategy is there to help the organisation to achieve its objectives and goals. There are various factors in the industry that multinationals can take to make investment decisions, nevertheless in the international business environment, it has been dominated by both industry and resource base views. A resource base view lies within the company and not on the outside, it also tells us how the company or organisation will deliver a sustainable competitive advantage and how these resources will be controlled and managed in a way that its end results can’t be copied by its competitors and would create a competitive barrier and generate a competitive advantage at a sustainable level Porter 1980).An industry base view is based on a clear understanding of the organisation’s competitive and economic structure, the challenge here is to position the company in a way that it could gain a bigger portion of the profits in the market that the company is operating in and even with new entrants coming into the market place , the organisation should turn its core competencies in an advantage. According to the journal the authors (M.W.Peng, D.Y.L. Wang and Y. Jiang) state that the view of international business strategy emerged through and institution base. They also state that this one of the legs that support and uphold the tripod strategy, and the other two part of the tripod strategy is based on a resource base view and an industry base view. In the journal the authors did a review of four distinct characteristic s or qualities of important research , these four characteristics are :(1)antidumping as entry barriers;(2)competing in and out of India;(3)growing the firm in China and the fourth being governing the corporation in emerging economies. According to the authors they state that there were questions confronting the international business raised by (Peng 2 004a), where he identified emerging nations in Asia to indicate a realistic and intermediate phase during the early and late stages of institution transitions. In the article the authors’ stats two arguments that is based on network strengths and network content. To determine strategy and performance the authors cite (Porters 1980) competitive strategy, which a frame works for industry analysis (Porters Five Force analysis). A third leg in the strategy tripod In the third leg of the strategy tripod the authors state that the industry-base view is rooted in a way the MNE’s strategy is based on certain conditions within the nature of the industry that the company has a focus on. They (authors) also state that with a resource – based view IB concentrate more internally that externally, as most of the value lies within the organisation. With both industry and resource-based views, it still brings up questions to investment locations. In the tripod strategy the autho rs cite (Scot 1995:33) where he define institutions as concrete structures , e.g. buildings and as human capital , including political and social aspects which they state , e.g.corruption,economic liberations and ethical norms , these are a few examples from the article that also affect the stability of markets that MNE’s operate in. Research by (Lawrence & Lorsch , 1969) clearly shows that the dominate part of research is a â€Å"task environment† view , where economic variables were looked at and what the market demand are and a change in technology.(Peng 2008) states that shaping strategies and performance have an impact on both formal and informal institutions.