Deciding to internationalize Flashcards
What is the Nine strategic model?
Uses industry globalism and firms preparedness as criteria for deciding if the firm should go abroad or stay home
What is needed for a company to see if they should go global or not?
- Benchmarking (competence profile): the customer-perspective value of different competitors
- Value Chain analysis = inputs on determining where the firm has got its core competences and where future capabilities should develop. ( could a function be carried out where there is higher competence (and the greatest cost-effectiveness)
What doest the company valuechain consist of?
R&D, Production, marketing, sales och service
What are the motives for going global?
Proactive vs reactive_
Proavtice: Profti and growth goals maagertial urge Gorgein market opur Economics of scale
REacive:
comp pressaure domestic market is small and saturated
Estend sales of seasolnal products
What is needed to look at when deciding which market to enter?
Global marketing reserash
Analyzing the political, economical and socio-culture forces
Market segmentation (BCG Metrix)
What is needed when looking at the political and economic environment?
Trade barriers
Political risk anlysis
How is the economic intregration in the regional markets? (free tradezon, custom union, common market, EU?)
What is needed when looking at the socio cultural environment?
Look at hofstedes culture dimention:
Individualism vs Collectivism Power Distance Index (high vs low) Masculinity vs Femininity Uncertainty Avoidance Index (high versus low). Long-term orientation Indulgence vs restraint
what is culture?
Ideals, values, and assumptions about life that are widely shared among people and that guide specific behaviors
Whar is the differnt entry modes and what do they inclute in terms of control, risk and fleixibility?
Export (agent distrubutrer) = low control, low risk, high flec
Intermediate mode (joint ventrue, stretegic alliance) ?shared control and risk, split ovnership
Herirarchical (own subsiduray) = high hontrol, high risk, low flex
What do you need to look at then deciding the marketing programme?
- Adapt or standardixe the product (in wish degree?)
Look at the 4ps - Product? (PLC and IPLC, straait extention? product adapt?
Price:
- Pricing strategy mix (economu, premium, penetration or skimming?
- payments (trust or not?)
Place? Market coverage (intesive, selective, exlusie?)
Promo:
- Sales objectives? KPIs? goals and budet? (tänk volvo)
What do you need to look at when coordinate the marketing programme?
Traslate the strategy into:
- asseble of the 4ps
- org effort
- Who is resoinsivle for the impetemntation?
- when is it gonna take place?
Cross boarder negotiation (the gap lies in the cultural distance, behavoriie, concest of times and normes)
What is included in the Porters diamond model?
- Factor conditions (basic or advanced?)
- Home market demand (more demapnd =pressure. Early home market saturation encurage people to invoate and keep selling)
- related and suported industries (cost-effectivness, rapid information sharing)
- firms strategy,structure and rivalry (in terms of rivarly, think BMW)
What is included in porters five forces?
Potential entrants (threat of new ones)
Bargaining power of buyters
Bargening power of suppliers
subistutures (thret of it in the indstry
i mitten: Industry competitvors
This method is used to analyse businesses competitvness
What is the three branding options?
Private branding
Co-branding
Manufacture branding
What are factors that influence to standardixe or adapt?
Costumers orantations: Pruchasing power Preferences and habbits Socio-cultural factors Education level
