Strategic Management

With technology also more expensive than traditional technologies most software producers will be unwilling or unable to invest in either the research or the capital equipment necessary to compete in this segment. Thus this innovation might provide higher margins in a segment with few competitors. Further evidence that high quality and innovation are particularly important in stagnant industries comes from analysis of the 1,000 businesses in the PIMS [profit impact of market strategies) data base. For all these businesses, higher product quality is associated with a larger return on investment, but the relationship appears to be most significant in stagnant markets.

Global Competition

The globalization of the world economy has pushed many organizations, particularly software and mobile applications companies, to rethink how they compete in this expanded market. The increasingly interdependent financial, product, and labor markets are all advancing at a different paces towards a “globalized” system (Buckley and Ghauri 2004).

Internet increasingly promotes a global environment putting Brazilian Mobile Service in global competition. Company’s global strategy is largely driven by three structural forces: economies of scale, comparative advantage, and standardized markets (Birkinshaw et al. 1995). Therefore adopting a global strategy is crucial to create highly interdependent network. Brazilian Mobile Service global strategy is thus characterized as developing competitive advantage through operating in interdependent national markets by exploiting differences in national resource endowments, the flexibility of independent subunit networks, and economies of scale and scope, as well as learning (Malnight 1996).

Based on the strategy of thinking Global and acting Local, the Local market orientation will be underscored by increasing depth of local market knowledge will lead to higher levels of global market penetration. The company...