international strategy
where the firm sells its goods or services outside its domestic market.
generate AA returns on investments
iPrimary reason for investing in international markets
international business-level strategy
home country of operation is often the most important source of competitive advantage.
factors of production
Inputs necessary to compete in any country (labor, land, natural resources, infrastructure)
basic factors
natural and labor resources
advanced factors
digital communication systems, educated workforce
generalized factors
highway systems, capital
specialized factors
skilled personnel in specific industry
demand conditions
Nature and size of buyers' needs in the home market for the industry's goods
related and supporting industries
Italy and shoe industry: leather-processing to make shoes, and buyers that travel to Italy help distribute
michael porter's diamond
emphasizes environmental/structural attributes of national economies that contribute to national advantage.
international corporate-level strategy
focuses on the scope of a firm's operations through both product and geographic diversification. Required when firm operates in multiple industries and multiple countries or regions.
multidomestic strategy
strategic and operating decision are decentralized to the strategic business unit in each country to allow tailored products to local market.
global strategy
Offers standardized products across country markets, with competitive strategy dictated by home office
transnational strategy
Firm seeks to achieve both global efficiency and local responsiveness
flexible coordination
building a shared vision and individual commitment through integrated network
liability of foreigness
Global strategies not as popular as once were, still difficult to implement, even internet strategies.
regionalization
Company must decide to compete in all or many global markets, or to focus on a region
licensing
allows a foreign company to purchase the right to manufacture & sell the firm's products within a host country or set of countries.
strategic alliances
Recent popular means of global expansion, Allows firms to share risks & resources to enter international markets and develop new core competencies
new wholly owned subsidiary/greenfield
Maximum control to the firm and most potential for AA returns
acquisitions
more likely for human capital intensive