BUSI3020 Lecture Notes - Lecture 5: Initial Public Offering, Foreign Direct Investment, Bargaining Power
Document Summary
A firm"s overall competitive strategy in a market, either global industry or country market: identifying unexplored opportunities in international markets focus: new ventures and the international context. Tend to use hybrid structures (strategic alliances and networks) Forces that will affect success of new businesses: external and internal analyses: external analysis for new businesses. Intensity of inter-firm rivalry: fewer incumbents, more likely to collude to keep out newcomers, entry barriers: capital intensive, bargaining power of suppliers: how to reduce it, bargaining power of buyers: how to reduce it, threat of substitute products/services. Institution-based considerations: formal institutions govern new ventures. 430 times per capita gdp for entrepreneurs to get electricity; Sierra leone 441 days to obtain electricity: internal analysis for new businesses. Resource-based considerations: entrepreneurial resources must be vrio (valuable, rare, inimitable, organizationally embedded, with respect to competitors in each country market or global industry. Internationalizing new ventures: internationalizing the entrepreneurial firm. Liability of newness combined with liability of foreignness.
