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Internationalisation - Coggle Diagram
Internationalisation
Entry mode
Join Venture
Aquisition
Franchising
Greenfield
Licensing
Exporting
Approaches to competing
internationally
Global Strategy
Think Global - Act Global
Standardisation /
economy of scale
Traditional Strategy
Think Global - Act Local
Standardised product with
local modification
Multidomestic Strategy
Think local - act local
Custom offering
for each country
Jargon
Domestic Firm
Operates only in home country
International Firm
Trades with other country but no investment in them
Multinational firm
Investments in more countries
Factors
Environmental
Bandwagon Effect
Companies will follow one in internationalisation
Attractiveness of Host Countries
Unsolicited
Proposals
From foreign companies
Organisational
Decision-maker
Characteristics
Travel experience
foreign language
Risk aversion
Firm-specific
Factors
Firm Size: Big org more prone
International Appeal
Location choice
Advantage offered
by country
Labour cost
Favourable law
Large consumer's market
Transferable competitive
advantage?
"distance" amongst
countries
cultural
Administrative/political
Geographic
Economic
Benefit / Challenges
Benefit
Increased Market Size
Economies of scale and scope
Arbitrage
Access to new resources and capabilities
Risk Reduction
Challenges
Liability of foreignness
Speed of expansion
Uppsala Model
process of incremental int.
Commitment
Born globals or international new ventures
Distance
neighbour countries first
Born Again globals
Latecomer multinationals from emerging markets
Global Value chain