ANSWER 1. In retail sector , in india there is flipkart which actively competes with amazon therefore factors favourabe to flipkart as domestic firm and risk involved to them are as follows -

Advantage: Simpler Market Analysis

Understanding each target market's preferences poses a challenge when operating in international markets. Firms may need to invest substantial resources in analyzing what customers from other countries are most likely to purchase, and how to market to them. This may require a significant investment of time in each country, whereas in the domestic environment, a firm can often predict customer preferences more easily. It likely is more familiar with competitors' offerings and can more easily understand its own market niche.

Disadvantage: Greater Impact From Cyclical Changes

Predicting cyclical changes usually tends to be easier in the domestic business environment. This allows a firm to prepare appropriately to take advantage of economic upturns and stay afloat during downturns. However, cyclical changes tend to affect a domestic firm more intensely than an international firm, making it more vulnerable to the ups and downs of the domestic market. A firm that does business in different countries has other ways of generating profit when domestic market conditions are poor, although it may have difficulty accurately predicting the cyclical changes in each country.

Advantage: Communication is a Breeze

In the domestic business environment, communication is typically easier than in international environments. Employees in the domestic environment are typically from the same culture and speak the same language fluently, although exceptions do of course exist. Close communication must be maintained between operations in different nations, which requires significant time and effort.

Disadvantage: Limited Market Size

The size of the target market in a domestic environment can present a disadvantage, as the size may be limited. Nestlé branched out from Switzerland into other countries in part because of the extremely limited size of its target market in its home country. Businesses eager to expand may find themselves confronted with the challenge of branching out beyond their domestic borders. Extending into a larger environment can present far greater opportunities for generating a profit, particularly if a firm is willing to diversify its offerings.

Advantage: Streamlined Reporting

A business typically has one set of requirements to follow regarding accountability in the domestic environment. Different sets of regulations may apply when a firm operates in international environments. The firm must then follow local environmental and labor regulations, the laws of its home country pertaining to international business, and any global regulations that apply. It must follow the relevant tax laws for each place of business. Overseeing the firm's international operations requires time and effort. Thus, a domestic firm may have the advantage of spending relatively little on oversight in comparison to an international firm.

Disadvantage: Access to Materials and Labor

In a domestic environment, access to materials and labor may be limited. A firm with international operations might more easily and cheaply procure the raw materials or component parts of its products. Likewise, it might produce products more cost-effectively by creating them where labor is cheaper. A domestic firm might need to follow stricter regulations regarding employee wages. However, providing domestic jobs can lead to greater public goodwill for the company in its domestic environment.

2.

strategies used by domestic companies is necessary to comete with global firm -

Aligning Assets with Industry Characteristics

When India opened its automotive sector in the mid-1980s, the country’s largest maker of motor scooters, Bajaj Auto, confronted a predicament similar to what many “emerging-market” companies face. Honda, which sold its scooters, motorcycles, and cars worldwide on the strength of its superior technology, quality, and brand appeal, was planning to enter the Indian market. Its remarkable success selling motorcycles in Western markets and in such nearby countries as Thailand and Malaysia was well known.

STRATEGIES USED ARE-

1.Despite the heated rhetoric surrounding globalization, industries actually vary a great deal in the pressures they put on companies to sell internationally.

2.Two parameters—the strength of globalization pressures in an industry and the company’s transferable assets—can guide that company’s strategic thinking.

3.Far from weighing down operations with low-margin sales, the company’s distribution network was the key to defending its home turf.

4.Where globalization pressures are strong, managers can’t just build on their company’s local assets; they will have to rethink their business models.

5.For would-be contenders that lack access to key resources, finding a distinct and defensible market niche is vital.