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〔ASM〕G4-ABS-International Strategy (Team Members (Sharon, Willy, Debby,…
〔ASM〕G4-ABS-International Strategy
Entering Foreign Markets
Exporting
Advantages
Build the scale economy
Enter the international markets rapidly
Utilize of excess domestic capacity
Establish distribution channels
No need to operation in other country
Disadvantages
Import tariffs
Can't take advantage of better cost or capability
Transportation cost
Less control over marketing or distribution
Product customization harder
Definition
Manufacturing the products in home country
Shipping to the host country
Licensing and Alliances
Definition
Authorizing foreign firms make or sell products
Advantages
Production advantages
Local Partner
Political influence
Preference of local taste
Local cost
Low transit cost and tariffs
Disadvantages
Firm-specific assets may hard to transfer
Lose control product quality
Divergent goals between partners
Partners may acquire capabilities and compete
Profit gets lower
Foreign Direct Investment
Exporting
Licensing
strategic alliances
What is FDI?
Advantage
Cost effective
Transportation cost
Tariffs
Establish operations
Disvantage
Hard to control
Establish relationship with suppliers and things
How org choose to enter new foreign market?
Introduction
Business Strategy
organizations conduct their business across borders.
manufacturing operations
Rise Of Internasional
exp: IKEA
Swedish company
furniture manufacturers and retailers.
huge multinational company
profit 3.5 billion Euros
300 stores in 26 countries
Internasional Strategy
foreign competitor
particular firm's
domestic market
potential for a firm
foreign market.
Global become difficult
tremendous opportunities
tremendous risks involved
organizational strategy
Rise Of Globalization
World become flat
rise in global competition
intercon activity
technology
EASY
firms of all sizes in all industries
global scale
Difficult
sort of the localized nature
particular foreign market
global integration
opportunity for the standardization
production of goods
provision of services
Local Responsiveness
extent to which products
extent to services
extend to business
Patterns of Internationalization
A firm enter a foreign market and compete there./Foreign competitors enter our market and compete with us.
Way
International trade
Ex:exporting
Foreign direct investment
Different type
International industries
Easy to ship all around the world
Not high degree of national differentiation
Ex:aerospace
Multi-domestic industries
High degree of national differentiation
Ex:packaged goods/hotels
Sheltered industries
Generally local operators
Ex:hairdressing/milk
Global industries
High degree of foreign direct investment
Ex:automoble
High degree of international trade
The relation of competeing
Ex:iRobot
Entery mode
Greenfield development
advantages
Greatest control of technology, marketing ,distribution
operations can be expanded increase as the firm learns
appropriation of value by others least likely
acquisition
what is it?
why the company use the acquistion?
Where to compete
The new market
Firm's ability
The approach to management
Valuable competitive position
Opportunity
Value
Capability
Understanding the structure of foreign industry
Between with domestic market
Similarity
Difference
Bargaining power
Buyers
Suppliers
Dynamics
Substitute
Foreign market knowledge
Effectively compete with others
How to compete with the local competitors
Team Members
Sharon
Willy
Debby
Vendy
Iris
Flora