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International Strategy (:red_flag: Where to compete (What market should…
International Strategy
Introduction
Global integration
全球整合
standardize products
standardize our products
centralize operations
jet engines / consumer electronics /automobiles
Local responsiveness 在地回應
adaptation at local level
Fast Food / Retail Banking / Service Industry
the potential for a firm to enter foreign
markets
foreign competitors to enter a firm’s domestic market
“Going global”
can be difficult, but rewarding
(tremendous opportunities and risks)
Patterns of internationalization
:red_flag:International Industry
Low
degree of national differentiation
Product or service are
easy
to ship around
Aerospace
Agriculture
Create economic of scale
:red_flag:Multi-Domestic Industry
High
degree of national differentiation
Product or service are
hard
to transport across border.
Package goods
Hotels
:red_flag:Shelter Industry
Be highly specialized to domestic location
Product or service are
hard
to transport across border.
Milk and dairy products
Cosmetic application
Local operator is dominant in the industry
High
degree of national differentiation
:red_flag:Global Industry
Involves international trade and some
localized operations as well
Semiconductor
Oil exploration
High degrees of
national differentiation
require higher levels of
local operations
(FDI)
:red_flag: Where to compete
What market should you enter?
Nature of the market opportunity
Firm's ability to create value
Which capabilities are most relevant, and do we have those capabilitites?
Foreign market knowledge?
Management skill particular to that location
How to compete with local and succeed?