Strategic Management and Strategic Competitiveness Research Paper - 3

Strategic Management and Strategic Competitiveness - Research Paper Example This paper illustrates that globalization is the process of improving the interactivity of the social, political interdependence, cultural, financial economic and incorporation of markets that are triggered by the development of technologies in the communication and transport sector at the same time liberalizing trade. Globalization together with the unparalleled change in technology has led to a weakening of the borders from the States control. There is an increase in the volume of cigar and money at an alarming rate which kills the tobacco industry. Fake tobacco products are smuggled into the State by organized criminals. There are various networks of companies, people, and groups who evade taxes and royalties to bring in fake cigarettes which look similar to the genuine products. As a result, they trade like any other company’s products hence killing the revenue collected by the company. The products sold by these smugglers cost much lower than the genuine products. With gl obalization and technological change, the products can be designed in a way, that one cannot differentiate them genuine products. The taxes can be avoided easily with fake documentation which can pass for the real documents. Application of the industrial organization model and resource-based model by Marlboro firm to earn above average returns can be done in various ways. First, with the application of the industrial organization model, Marlboro firm can make use of alliances with other cigarettes manufactures to form an association like a cartel. Since the organized cooperate more with other close competitors in the tobacco industry, this will reduce the probability of the collaboration to lift the revenues of the firm. Moreover, the firm can also make good use of its resource-based model by differentiating their products and making it known to the customers about the genuine products and how to separate from the fake products. All it takes are the internal resources of the company to implement strategies that can easily reduce cases of smuggling. In addition, the government regulatory controls can be partnered with, by the company by having agents or inspectors who are able to draw a clear line between fake and genuine products.