8. International Strategy Flashcards
International Strat key
Transfer/Replicate Firms advantages in other markets
Develop New capabilities/exploit overseas location-specific advantages
Why Internationalise?
Natural resources
Strategic resource
Market - Moree profitable
Efficiency
3 Entry modes
Home-Based
Collaborative
Wholly owned
Home-based
Exporting
Franchising
Licensing
Collaborative
Strategic Alliances
Equity JV
Wholly owned
M&A’s
Greenfield Investment
Home-Based - Key Factors - Why Export?
Increase sales
Diversify customers
Sensitive to tarifs
Home-Based - Licensing
Owner of intellectual properaly grants another firm the right to use it
Home-Based - Franchising
Firm allows another the right to use an entire business system - creating new competitors is a risk
What is an EJV?
Seperate firm created throught the investment of assets
Failure when Incompatability, opportunism, culture clash
Strategic Alliances
Collaboration organised and governed by contract
Sharing costs and risks
Joint exploration, R&D, production marketing supply
C’s of Strategic Alliance
Complementarity
Congruency
Compatability
Change
Greenfield Investments
Presence abroad from scratch
time and a lot of resources
Standardization
Sell standardized products
Maximise efficiency of value chain EoS
Adaptation
Forego EoS - adapt to local customer needs and comp env.
