Strategic competition perspective

Question 1

What do firms seek in regards to finding new countries, in the strategic perspective?

Answer 1

An alignment between the firm’s strategic objectives and opportunities they envision in foreign markets.

Question 2

What are the two strategic objectives related to internationalization?

Answer 2

Intrinsic and Extrinsic.

Question 3

What does Intrinsic Strategic Objectives involve?

Answer 3

MERS:
Market-seeking (sell more)

Efficiency-seeking (exploit lower salaries, geographic proximity to customers)

Resource-seeking (secure access to resources needed for the upstream activities)

Strategic asset-seeking (technological upgrade, know-how)

Question 4

What does Extrinsic Strategic Objectives involve?

Answer 4

Escape, low entry barriers.

Question 5

Other Strategic Objectives

Answer 5

Market-seeking

First-mover advantage

Strategic asset-seeking

Legitimacy

Question 6

What does strategic objectives override in regards to internationalization?

Answer 6

The deterring effect of psychic distance

Question 7

What are the industry-specific Global Strategy Drivers?

Answer 7

Market Factors
Cost Factors
Government Factors
Competitive Factors

Question 8

What do Market Factors involve?

Answer 8

Global customers and customer needs
Global Channels
Transferable marketing know-how

Question 9

What do Cost Factors involve?

Answer 9

Potential for economies of scale and scope
Sourcing efficiencies and favorable logistic
Differences in country costs and skills

Question 10

What do Government Factors involve?

Answer 10

Trade policies
Technical standards
Marketing regulations

Question 11

What do Competitive Factors involve?

Answer 11

Interdependence of countries

Global competitors

Question 12

Which factors influences adaptation of product attributes?

Answer 12

Physical attributes: Cost-reducing adaptations, Local standards, hygiene and safety regulations, local marketing knowledge, consumer behavior, marketing and physical environments

Service attributes: Local peculiarities in service, maintenance and distribution

Symbolic attributes: Unfavorable image of imported products, company, nationality or brand name, Inadequate meaning conveyed by color, shape etc.

Question 13

Which factors influences standardization of product attributes?

Answer 13

Physical attributes: Experience effects, economies of scale, international standards, international product use

Service attributes: Significant learning effects, “mobile” clientele

Symbolic attributes: Favorable image of imported products, company, nationality or brand, Exotic or ethnic appeal, Demands for “universals”

Question 14

Types of competitive moves

Answer 14

Pricing action
Major product action
Marketing action
Mini product action
Capacity action
Improvement in distribution and after-sales service

Question 15

Location choice is based on:

Answer 15

Their attractiveness to fulfill strategic objectives and win competition.
Starting with the largest/most important markets first.

Question 16

Timing is based on:

Answer 16

The sooner the better (to gain first-mover advantages), so internationalization can be fast.
Exits are an option.

Question 17

Entry mode choice is based on:

Answer 17

Entry mode choice is commensurate (passende) with the importance of the market for global strategy.

Question 18

What are the 3 phases of Global Strategy Development, including the pre-phase?

Answer 18

Pre-international
Phase 1: Initial Entry
Phase 2: Local Market Expansion
Phase 3: Global Rationalization

Question 19

What does phase 1, Initial International Entry, include?

Answer 19

Country choice, entry mode, and Timing and Sequencing of Entry.

Question 20

What does phase 2, Expansion in Foreign Markets, include?

Answer 20

Modification of Marketing Strategy, Development and Acquiring new brands, and Share Advertising, Promotional, and Distribution Costs.

Question 21

What does phase 3, Globalization, include?

Answer 21

Coordinate Marketing, Mix Across Countries, and Regions.
Integrate Sourcing and Production with Marketing.
Allocate Resources to Achieve Portfolio Balance and Growth.