Please enable JavaScript.

Coggle requires JavaScript to display documents.

Internationalization and the Need of Business Model Innovation - Coggle…

- - - - Original innovation is related to existing or new companies that offer product or services using a new BM. It can be motivated by the discovery of potential market opportunities and represent an effort to meet these new demands.
      - Imitation innovation is based on the development of similar successful BM.
      - Induction innovation is related to external factors that affect one or several elements of the BM, as the changes in the business value system, the changes promoted by a complex economic environment, a dynamic market demand, technology innovation, information flow, and industry evolution.
- - - - BM has three main
        components:
        
        Content
        
        Is related to how information and goods are exchanged, and to the required
        resources and capabilities to enable exchanges.
        
        Structure
        
        Is related to the network size and the ways in which parties are linked and exchanges are executed, to the order and timing of exchanges, to the market mechanism, and to the flexibility and adaptability of the transaction structure
        
        Governance
        
        is related to the locus of control of flows of information, goods, and
        finances. It also includes the nature of control mechanisms, like trust ad incentives
- - - - Is the more appropriate entry mode for companies that are internationalizing
        for the first time and seek to reduce the risks as it requires less commitment from the company
        
        Indirect Export
        
        Represents the use of intermediaries to connect the company with customers abroad.
        
        Direct Export
        
        Implies a direct contact between the company and its customer
    - - Include different forms of entry modes:
        
        Joint Venture
        
        Is a form of cooperation between independent companies, in which a joint project
        is carried out with fixed time and shared risks.
        
        Strategic Alliances
        
        Represent forms of partnership between two or more companies, with the purpose of carrying out joint projects or of cooperating in a single market
        
        Licensing
        
        Is the contractual agreement in which a company, called a licensor, provides
        a good patent, name of a company, technology or any business information to another company (licensed)