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SMMCG7[CS-3] Global Strategy, G7 members - Coggle Diagram

- - - - MNEs： conduct operations in at least two countries
      - FDI： investments in productive activities abroad
- - - - OECD
      - emerging countries
    - - technology
      - logistics
      - natural resources
      - labor
    - - location-specific advantages
  - - - active coordination
      - joint activities
    - - manage jointly
      - share in profits
    - - transfer intangibles
      - monitor performance
      - find a local partner
    - - sale into foreign markets
        
        directly
        
        via an agent
  - - - legal systems
  - - - start from home markets or nearby markets
      - use lower risks of entry mode
      - keep learning
      - expand into distant countries with higher risk mode
    - - talented enterpriser
      - advantages in local resources and knowledge
      - well global communication network
      - government policy
- - - - using scale economics
        
        ex. Tesla
        
        standardizing internationally
      - operating in same resources across multiple markets
    - - low pressure for cost reduction
        
        Localization strategy
        
        Benefit
        
        maximize local responsiveness
        
        Risk
        
        high cost of implementation
        
        product differentiation
        
        customized products or services in international markets
        
        Nestlé & Philips
      - high pressure for local responsiveness
      - low pressure for local responsiveness
        
        International strategic
        
        utilize core competitiveness
        
        sell same products/services
        
        Rolex & Starbucks
        
        Benefit
        
        Economies of scale
        
        Low-cost implementation
        
        exporting or licensing
        
        for products
        
        franchising
        
        for services
        
        licensing
        
        for trademarks
        
        Risk
        
        no or limited
        
        affected by exchange rate fluctuations
        
        Global standardization strategy
        
        the ability to use standard marketing internationally
        
        Lenovo
        
        benefit
        
        the cost reduction
        
        risk
        
        no local responsiveness
      - high pressure for cost reduction
        
        Transnational strategy
        
        allow brands and companies to expand their global footprint by selling their goods and services
        
        P&G
        
        benefit
        
        economies of scale
        
        risk
        
        exchange-rate exposure
    - - offer local customer preferences & country requirements
        
        ex. McDonalds
        
        customizing to individual countries (ex. India)