International Development Plan for Estia Health in China Assessment Answer
INTERNATIONAL BUSINESS STRATEGY
Overview of the significance of resource-based, industry-based and institution-based views of strategy
Before developing the business to new international markets, the company needs a proper analysis of all the aspects that will serve to establish a successful business strategy. It will help the company to achieve a good position in the new market and will help to maintain a stable and systematic business operation in the future. In the following, the significance of the three viewpoints of analyzing the business competence in order to develop successful business strategies for entering the new business market is discussed.
Before starting the business in the new markets of China, the company needs to do the resource-based analysis that will help the company to develop its business strategy that will be suitable for the new business market. The resources based analysis will help Estia Health to properly understand the resources they will need to do successful business development in China and how to strategically utilize those resources to gain competitive advantages in the respective market of the country for stable and successful business operation (Hong, Wang & Kafouros, 2015). VRIO analysis in the resourced based view strategy will help to understand the capabilities of the firm in the market, which is essential for systematic development. Through the resource-based business analysis, the company will be able to know how they can effectively utilize their existing resources and acquire the resources necessary as well that are essential for operating the business in the new business markets of china.
In order to successfully develop the business strategies, Estia Health needs to do an industry-based analysis of their business, which will help them to identify the industrial requirements of the company in the new market of China. Five forces model analysis is very much significant in understanding the industry competitiveness, and Estia Health will get further information regarding the industry situation by following the industry-based view strategy. It will help the company to understand the conditions of the industry and evaluate the firm’s efficiency to meet those conditions (Knight & Liesch, 2016). Thus doing the industry based analysis will help Estia Health to develop proper business strategies that will be able to fulfill all the industrial conditions for the successful future operation of the company in the new country market.
The institution-based analysis of the company provides a proper understanding and evaluation of various factors that are related to the institution that influences the business operation. An appropriate assessment of the institutional business environment and its practices is very important for developing proper business strategies before entering a new business market in a new country (Sadeghi et al., 2019). It will help Estia Health to properly evaluate the institutional business strategies that are essential for doing successful business in a new market. In order to achieve success in the new business market, the company needs to develop and modify their institutional business strategies according to the new market situations.