MGCR 382 Lecture Notes - Lecture 3: Core Competency, Minicomputer, Emerging Markets

• School: McGill University
• Department: Management Core
• Course: MGCR 382
• Professor: David Schumacher

Document Summary

Natural resources & talent, varies from country to country. Transportation costs, varies even within a country. Costs, the further you are from another country, costs increases. 40% of mini-computer chips, disrupted global supply chain. Effects on ppp, market size, wage levels, labor cost. The greater marked the differences, the greater the distance between countries. The firm may seek to leverage core competencies that the firm has developed in its home market. Core competency: distinctive strength/advantage that is central to a firm"s operations. By utilizing its core competency in new markets the firm is able to increase its revenues & profits. I. e. this occurred with blackberry (started in canada) Foreign markets provide returns superior to those in domestic markets. Emerging markets - high growth with less intense competition (so firms gain higher profit margins) Want to be closer to supply sources. Gain access to low cost and/or high quality factors of production.