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Global Strategy, G3 (109212059 IBS (3) 楊愛嘉, 111212503 IBS (M2) 林文文,…

- - - - Automobiles
        
        Japan, Germany
      - Consumer electronics
        
        Japan and South Korea
      - Movies
        
        the USA and India
  - - - factor conditions
      - Related and
        Supporting Industries or Complementors
      - Competitive Intensity
        in the Focal Industry
  - - - McDonalds
        
        India
    - - Tesla
        
        Giga factories
- - - - reduced transportation costs
        
        In 1940, reduce the cost of sea freight fallen by 80% and air transport
        
        reduced the cost of conducting business globally today
      - growth of MNEs and FDI
        
        Multinational enterprises
        
        companies that operate in two or more countries
        
        including procurement of raw materials
        sales and distribution of their products and services.
        
        Foreign Direct Investment
        
        investment in actual productive assets
        
        they build a production plant in a foreign country or spend money on an R&D center
      - falling trade and investment barriers
        
        negotiations
        
        EU, NAFTA
        
        remove barriers to trade, reduce the average cost, and gain a competitive advantage on this basis
      - advanced telecommunications
        
        have a video call anywhere in the world for free
        
        important for the travel of all kinds of professionals and business people
- - - - US Clothing Company
        
        Nike
        
        50% from international markets
        
        Globalized in sales
      - Low cost manufacturing
        
        Country target
        
        OECD Countries
        
        economically developed market
        
        Australia, Canada, Germany, etc.
        
        China and India
        
        better access and have lower cost factors in production abroad
        
        India
        
        developed new capabilities
        
        learning from foreign countries' operations
      - How :question:
        
        Exports
        
        Sales into foreign markets (directly/indirectly)
        
        Which one :question:
        
        Franchising
        
        contract with a local partner to transfer intangibles (e.g. KFC)
        
        Strategic alliances
        
        more active coordination with partners but no new legal entity :red_cross:
        
        Joint venture
        
        both companies contribute resources to create an
        independent company. New legal entity crate :check:
        
        Licensing
        
        Use contract to sell trade mark (e.g.- Disney)
        
        Wholly-owned subsidiary
        
        parent company owns 100% subsidiary (Greenfield, Brownfield, Acquisition)
  - - - Regulations
        
        the legal system
      - Trade and investment barries
      - Different institutions
      - Different culture, language
        
        Netflix in Canada
        
        liability of foreignness
        
        ability to cope with the liability
      - Currency
      - Animosity, politics, anti-foreign bias
      - To overome
        
        Global Comunication network
        
        Local advantages in resources and knowledge
        
        Government policies to overcome barriers
        
        Global flows of talent and entrepreneurs
- - - - Highest-possible local responsiveness
        
        Reduces change rates exposures
        
        Duplication of key businesses across different countries
        
        High cost implementation
        
        High risk for intellectual property expropriation
- - - - Economies benefits
        
        No local responsiveness
        
        Little or no product differentiation
        
        Echange rate exposure
        
        Risk of IP expropriation
- - - - Used by MNEs with large domestic markets
        
        High-end products or luxury goods (Rolex)
        
        Strong brands
        
        Economy of scales
        
        Low-cost implementation through exporting or licensing (products), franchising (services), licensing (trademarks)
        
        No or limited local responsiveness
        
        Highly affected by exchange rate fluctuation
- - - - Haier
        
        Backward: Components are standardized -> economies of scale and low cost.
        
        Forward: Different preferences in different countries -> need for product differentiation
        
        Economies of scale
        
        Local responsiveness
        
        The global matrix structure can be very costly and difficult to implement
        
        Exchange rate exposure
        
        Higher risk of intellectual property expropriation