GEO 334 Lecture Notes - Lecture 6: Market Power, Strategic Management, Nearshoring
5 Dec 2018
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Document Summary
The process by which a firm"s managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called strategic planning. The basic means by which the company competes its choice of business or businesses in which to operate and the ways in which it differentiates itself from its competitors is its strategy. Companies of all sizes go international for different reasons some reactive (or defensive), and some proactive (or aggressive). The threat of their own decreased competitiveness is the overriding reason many large companies adopt an aggressive global strategy. One of the most common reactive reasons that prompts a company to go overseas is global competition. In addition, the lower costs and market power available to these competitors operating globally may also give them an advantage domestically. Competitors who have already went overseas can become so successful that its hard for new companies to enter.
