1 / 26

Chapter Seven

Chapter Seven. International Strategy. Multimedia Slides by Peter J. McAliney Chenery & Company. Chapter Overview. Strategic advantages of international expansion Global and multidomestic industries Competitive pressures for international expansion

kemp
Download Presentation

Chapter Seven

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter Seven International Strategy Multimedia Slides by Peter J. McAliney Chenery & Company

  2. Chapter Overview • Strategic advantages of international expansion • Global and multidomestic industries • Competitive pressures for international expansion • Global, multidomestic, and transnationalstrategies • International market entry modes

  3. Conditions Fostering Growth in Global Markets Social Technological Political

  4. Globalization Impacts All Facets of Value Chain Manufacturing plant sites Capital Skilled personnel Competition for sourcing of raw materials Finished goods

  5. Advantages in Internationalization • Growth opportunity • Cheaper resources • Full capacity production • Pre-empt or match competitors’ similar intentions • Learning opportunity

  6. Disadvantages in Internationalization • Complex • Impact on strategic decision-making • Potential hostility by foreign countries • Market failure, political unrest, and prolonged governmental instability

  7. Globalization • Cross-border integration, resulting in inter-dependence on each other for: • Goods • Services • Factors of production

  8. Two Sides of a Spectrum Customization Massification Global Multi-Domestic

  9. Globalizing the Value Chain • Location advantage • Value-chain activities in international regions • Competitive strength • How well firm is integrated, compared to the industry

  10. A Global Industry: Footwear Source: Adapted from P. Lasserre, Global Strategic Management (New York: Palgrave Macmillan, 2003), 1.

  11. Examples of Global Industries Petroleum Footwear Autos Construction Machinery Industrial Chemicals

  12. Multidomestic Industries • Present in each nation in a distinct form • Competition occurs locally • Manufacture and market specific to region’s unique needs • Customization, not economies of scale benefits

  13. A Multidomestic Industry: Personal Care Products Source: Adapted from P. Lasserre, Global Strategic Management (New York: Palgrave Macmillan, 2003), 1.

  14. Competitive Pressures in the Internal Business Environment (I) • Pressure to integrate globally • Pressure to be responsive locally • Pressure to achieve both global integration and local responsiveness

  15. Competitive Pressures in the International Business Environment (II)

  16. Strategies to Compete in the International Business Environment • Global strategy • Multi-domestic strategy • Transnational strategy

  17. Global Strategy • Standard product for worldwide consumption • Competitive advantages • Location advantages • Coordination advantages

  18. Multidomestic Strategy • Compete according to local needs • Competitive advantage • Customized product/service

  19. Transnational Strategy • Combination type • Mixes multinational and global • Competitive advantage • Transfer information and experience

  20. Considerations for Entering New Markets • Economic • Political • Market attractiveness • Market size • Growth • Industry structure • Competition • Availability of resources • Government policies

  21. Entry Modes • Exporting • Licensing/franchising • Joint ventures/strategic alliances • Sole venture or wholly owned subsidiary

  22. Exporting

  23. Licensing/Franchising

  24. Joint Ventures/Strategic Alliances

  25. Sole Venture/Wholly Owned Subsidiary

  26. Chapter Summary • Strategic advantages of international expansion • Global and multidomestic industries • Competitive pressures for international expansion • Global, multidomestic, and transnationalstrategies • International market entry modes

More Related