Week 7 Flashcards
What are some international market drivers
Market demand
potential for cost advantage
government inducing and pressures
competitive moves
what are firm specific advantages?
These are the unique strategic capabilities of the firm.
what is market selection?
looking at which markets to prioritise and which to avoid. (political, social, economical factors)
Whats the difference between an international and global strategy?
International strategy - operating outside of an organisations country of origin.
Global strategy - high coordination of extensive activities dispersed geographically in many countries around the world.
what is global balcony?
where economic integration into a single homogenised and competitive world is wildly exaggerated. (Eg: Chinese markets not only vary from western ones but vary widely within china itself.
What are YIP’s drivers of internationalisation?
focus on for key areas:
- Cost drivers - (economies of scale, lower labour, favourable logistics)
- Goverment drivers -(trade policies/ technology standardisation)
- competitor drivers
- demand drivers
Forces organisation to lower costs and increase quality on a global scale.
What is Porter’s Diamond
locational advantages stem from, local factor conditions, demand conditions, firm strategy,structure and rivalry and related and supporting industries.
What is global sourcing?
Purchasing services and components from the most appropriate suppliers around the world regardless of location.
Advantages include:
- cost
- national market characteristics
- unique local capabilities
What is the Global –local dilemma
the extent to which products and services may be standardised across national boundaries or need to be adapted to meet the requirements of specific national markets.
What are some international strategies
local Intergration Vs local responsiveness
- Global strategy
- Export strategy
- Transnational strategy
- Multidomestic strategy
What is Arbitrage?
when multinationals take advantage of price differences between two or more markets by purchasing goods cheaply in one market and selling them at a higher price in another.
CAGE framework?
Emphasises the importance of :
-Culture, administrative and political distance, geographic distance, economic
What are the two international strategy phenomenon’s
Born global firms - new small firms that internationlise rapidly though early stages of thier development
emerging country multinationals -move through entry modes quickly.
The inverted U curve?
Where the cost of organisational complexity outweigh the benefits of internationalisation.
What is service sector disadvatage?
when internationalisation efforts may not lead to improved presense - due to industry being highly regulated. - also requires significant local presence.
subsidary roles in a multinational firms
Black hole - question marks - needs high investment
Implementer (generate financial contributor -cash cow)
Strategic leader
contributor
What does the innovation dilemms include?
Technology push - new knowledge created by scientisitcs and technologies that pushes the innovation process.
Market pull - pull of users in the market
lead users - pull of market experts
Frugal innovation - responding to the needs of the poor people (lack of money and enviroment)
whats the difference between product and process innvoation?
product innovation - final product being sold
Process innovation - way the product is produced and distributed.
What is open and closed innovation?
closed = traditional innovation
open = relies on import and export of knowledge - enhance innovation. relied on collaborators
- works well if innovation is continuous.
What is platform leadership
refers to how large firms consciously nurture independent companies through successive waves of innovation around their basic technology platform
Balance of open and closed innovation depend on?
- Competitive rivalry
- One-shot innovation – innovation involves a major shift in technology.
- Tight-linked innovation – technologies are complex and tightly interlinked.
Business model innovation involves innovation in:?
product - what product and how it is produced
selling - can change the way organisation generates revenue.
-innvoation can be drawn from all parts of the value chain.
what is diffusion?
The process by which innovation speads among users.
The pace is determined by supply and demand factors
Demand factors:
- Market awareness
- Network effects
- customer propensity to adopt
supply factors:
- degree of improvement (innovation benefits exceed costs)
- compatability - other products
- complexity
- experimenting (trialing product)
- relationship management (information and support)
What is the diffusion S curve?
reflects a process of initial slow adoption of innovation, followed by rapidly acceleration in diffusion, leading to a plateau representing the limit to demand.
Tipping point - demand accelerates - rapif growth
Triping point - demand collapses.
What are the 5 first mover advantages?
experience curve benefits buyer switching costs reputation scale benefits preemption of scarce resources
what is the Fast second strategy?
involves being one of the first to imitate the original innovator.
The entrepreneurial life cycle
progresses through start-up, growth, maturity and exit.
