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Rodamas Group Designing Strategies for Changing Realities in Emerging Economies Case Solution
Rodamas does not have the core competencies to be able to compete in the changing business environment in Indonesia. There are multiple strategies it can employ to stay relevant and compete in the new business environment post the Asia Financial Crisis. These include competing in the sector such as rental spaces or internationalization, or even focusing on its knowledge and leveraging its current talents. The recommendation is for Rodamas to focus on establishing itself in the consumer product distribution sector. They have the needed experience and knowledge, and they can also make use of this time to build profits and its own core competencies. Therefore, the key is for Rodamas to focus on acquiring multiple multinationals to partner with that can give it the capital it requires to invest in establishing its own unit. In addition to that, the organization can also invest time and effort into acquiring the needed skills
Following questions are answered in this case study solution
What are the core competencies of Rodamas? Are they sources of sustainable advantages?
What are the main characteristics of the business environment before and after the 2008 Asia Financial Crisis? How do such changes affect Rodamas' core competencies?
What are the different strategie alternatives for Rodamas and what are the Pro's & Con's of each?
What strategy would you recommend Rodamas to take?
What would it take to successfully implement this strategy successfully?
Case Analysis for Rodamas Group Designing Strategies for Changing Realities in Emerging Economies
1. What are the core competencies of Rodamas? Are they sources of sustainable advantages?
The core competencies of Rodamas include its network and capability in selling the international goods in the Indonesian market. It acts as an attractive partnership for global multinational companies in a wide array of industries. This enables it to be a central point for companies to connect to the Indonesian market and business environment. The organization has a multitude of experiences in different industries and with differing products as well. Rodamas has insight and knowledge about the Indonesian market that is of vital importance to any international firm looking to establish itself in the country. Furthermore, Rodamas can provide knowledge of the market, consumers, regulators, and the regulations required for any global partner. They have experience in dealing with both manufacturing and distribution as well. However, their core competencies are not sustainable for the changing environment in which they operate in. For instance, the organization does not have the technology and research and development expertise to set up and establish itself as a manufacturing unit. Furthermore, their agreements with various global partners prevent them for entering into industries they have partners in. While they do have the expertise to manufacture simple products, but Rodamas is well aware that the market for such products is saturated and thus, not very profitable. In addition to that, Rodamas has focused on becoming a lucrative option for foreign and multinationals to establish themselves in the country. However, it lacks the core competencies needed to establish itself in the market should it choose to enter. Thus, making their knowledge and networks not sustainable in the changing business environment. These are not sustainable advantages as once the companies are able to establish themselves on their own, they would no longer need Rodamas assistance. Therefore, the organization would have to work to develop newer competencies in order to stay relevant and profitable.
2. What are the main characteristics of the business environment before and after the 2008 Asia Financial Crisis? How do such changes affect Rodamas' core competencies?
The main characteristics of the business environment before the 2008 Asia Financial Crisis were that international businesses needed a local partner to navigate the locl market and regulations in the country. Moreover, the global companies looking to establish themselves were essentially required to have a partnership with a local company and contribute actively to the local economy as well. However, after the 2008 Asia Financial Crisis, a new regulation allowed foreign companies to have full ownership in their ventures in most sectors of the economy. This was to enable and promote foreign investment. This allowed foreign companies to operate without a local partner. Even though, trusted local partners was still important as international entities were unfamiliar with the infrastructure and the insights into the market that local partners could offer. However, these changes to the business environment post the Asia Financial Crisis also have implications for Rodamas. This is because Rodamas primarily established itself as an attractive local partner with insight and deep knowledge into the local market.
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