Darko

Question 1

stages of evolution

Answer 1

1. Innovation capabilities
2. Internal maturation
   - knowledge sharing and organizational learning capabilities
   - market(ing) capabilities
   - cash-rich positions
3. Strategic partnerships with MNC
   Leads to: competitive advantage in developed country market

Question 2

Stage 1

Answer 2

• apply innovative products & services
• processes & new business models
  Home
• strict government restrictions restrict import or business models > develop own products
• gaps in infrastructure or legal systems where companies can find creative solutions
  Host
• design competence
• provide quality products

Question 3

Stage 2 knowledge

Answer 3

Home
- enterprises cannot afford research and development
> public research institute cruicial to building if technological capabilities
Bspw. Konka group with Beijing university
Host
- use exploration and exploitation approach in host country to learn and enhance knowledge
- bspw. Lenovo and ibm with learning by doing and computer chips
- knowledge integration

Question 4

Stage 2 market(ing) capabilities

Answer 4

Home
- catering to price-conscious consumers
> great value / competitive price
> modify product to meet needs of these consumers
-> bspw. Haier wi5 washing machines in China
- find new market niches to escape price wars
Host
- finding niche markets
Bspw. M&M with hobby farmers and small tractors in the US

Question 5

Stage 2 cash-rich positions

Answer 5

• government owned
• diversification
• networking
• stock exchange

Question 6

Stage 3 strategic partnerships with MNC

Answer 6

For:
- technological capabilities
- distribution capabilities

Home
- indirect learning through knowledge spillover (ibm in India)
- formal partnerships
> strategic alliances and joint ventures to gain access to advanced technologies (founders and Microsoft)
Host
- technology driven partnerships between home and host companies (ZTE with joining league of global telecoms giants in US)
- marketing and strategic partnerships between home and host companies
( ranbaxy with Eli Lilly and later on purepac regaring pharmaceutical products)