SGMA 591 Lecture Notes - Lecture 9: Joint Venture, Comparative Advantage, Product Placement
2 Feb 2017
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Document Summary
What are the benefits of internationalization: reach new markets, tax shelters, improving capabilities, learn from different cultures, economies of scale, follow your customers globally. How does international strategy differ from domestic strategy: similarities. Political = i. e. britain could leave the eu. Where to locate: porter"s diamond, three factors to consider, value chain configuration. Different modes of entry into a foreign market. How to position the product: generic business strategies. How to gain advantage through the international portfolio: scope question similar to corporate strategy (value creation, multi-domestic, global, and transnational strategies. Multi domestic = operates in multiple countries but keeps its subsidiaries relatively autonomous. Global = integrate country portfolios integrate subsidiaries and have some centralized decision making. Transnational = mix very integrated and letting subsidiaries have autonomy. When exchange rates are well-behaved, comparative advantage translates into competitive advantage. Porter"s diamond model: factors of production (factor conditions) Porter emphasizes role of highly specialized resources.
