International competition is an option for every company but presents specific c

Question

International competition is an option for every company but presents specific challenges. From a macro-view, Global Connectedness and global markets are changing rapidly. From a micro-view, company-specific characteristics may make it more or less competitive outside its own domestic boundaries. Many questions must be raised before deciding to compete across borders.

Does Tractor Supply Company compete internationally? Address these questions, briefly and succinctly:

Why does it, or should it compete internationally? What does it / would it gain? (if you determine it should not compete internationally, why not?)

Why does it or should it succeed? Use the Porter's Diamond Model to state your reasons. (If it does not compete internationally, explain reasons it would not succeed.)

Explanation / Answer

No the company should not consider to compete internationally as the company is still on the path of greatest revenue and growth period, expanding its business internationally would fetch away this revenue and sales because there is very stiff competition internationally and the company has a seasonal business which may have a material impact on its operational results in the peak selling periods. Volatility in raw material prices remains major threats to the company.

The company should consider expanding domestically as it remains well positioned for growth due to smooth progress on its strategic plans, which include store expansion and technological advancements. Further, the company's sustained focus on expanding its core business in key markets, along with efficient inventory management, remain significant growth drivers. While if the company considers going global it would face various challenges. Even if potential benefits do exist for your company, you may not be in a position to realize them. The theoretical advantages of globalizing , economies of scale, for example are devilishly difficult to achieve in practice. It will drives away customers or distracts national management teams from the needs of their markets.

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