課件教程教案ch08strategy in the global environment

1、Copyright 2001 Houghton Mifflin Company. All rights reserved.Chapter 8Strategy in the Global EnvironmentStrategicCharles W. L. HillManagementGareth R. JonesFifth EditionPowerPoint Presentation by Charlie CookAn Integrated ApproachCopyright 2001 Houghton Mifflin Company. All rights reserved.8-2Profit

2、ing From Global ExpansionEarning high returns from transferring distinctive competencies to foreign markets.Realizing location economiesUsing lower-cost locations reduces overall costs and fosters product differentiation for premium pricing.Moving down the experience curveLarger global markets = mor

3、e accumulated volume.Global expansion and business-level strategiesLinked by cost reductions and value creation.Copyright 2001 Houghton Mifflin Company. All rights reserved.8-3Pressures for Cost Reduction and Local ResponsivenessPressures for cost reductionsGlobal competitors seek to minimize unit c

4、osts through location economies and attain low-cost competitor status.In commodity-type product industries, intense price competition predominates strategic concerns.Pressures for local responsiveness arise from:Differences in local consumer tastes and preferences.Differences in infrastructure and t

5、raditional practices.Differences in distribution channels among countries.Host government economic and political demands.Copyright 2001 Houghton Mifflin Company. All rights reserved.8-4Pressures for Cost Reduction and Local ResponsivenessFIGURE 8.1Copyright 2001 Houghton Mifflin Company. All rights

6、reserved.8-5Strategic Choice International strategyCreate value by transferring skills and products abroad. Multidomestic strategyMaximize local responsiveness by customizing products and marketing strategy for local markets. Global strategyPursue low-cost status, offer standardized global products.

7、 Transnational strategyUse global learning to achieve low-cost status, differentiation, and local responsiveness simultaneously.Copyright 2001 Houghton Mifflin Company. All rights reserved.8-6Four Basic StrategiesFIGURE 8.2Copyright 2001 Houghton Mifflin Company. All rights reserved.8-7Cost Pressure

8、s and Pressures for Local Responsiveness Facing CaterpillarFIGURE 8.3Copyright 2001 Houghton Mifflin Company. All rights reserved.8-8The Advantages and Disadvantages of Different Strategies for Competing GloballyStrategyAdvantagesDisadvantagesInternationalTransfer of distinctive competencies to fore

9、ign marketsLack of local responsivenessInability to realize location economiesFailure to exploit experience-curve effectsMultidomesticAbility to customize product offerings and marketing in accordance with local responsivenessInability to realize location economiesFailure to exploit experience-curve

10、 effectsFailure to transfer distinctive competencies to foreign marketsGlobalAbility to exploit experience-curve effectsAbility to exploit location economiesLack of local responsivenessTransnationalAbility to exploit experience-curve effectsAbility to exploit location economiesAbility to customize p

11、roduct offerings and marketing in accordance with local responsivenessReaping benefits of global learningDifficulties in implementation because of organizational problemsTABLE 8.1Copyright 2001 Houghton Mifflin Company. All rights reserved.8-9Basic Entry DecisionsWhich foreign markets?Politically an

12、d financially stableDeveloped and developing nationsFree market systemsTiming of entryPioneering costs versus first-mover advantages.Scale of entry and strategic commitmentsScale of entry affects the nature of competition in the national market. Implications of risks and benefits must be weighed car

13、efully.Copyright 2001 Houghton Mifflin Company. All rights reserved.8-10The Choice of Entry ModeExportingLicensingFranchisingJoint VenturesWholly Owned SubsidiariesDistinctive Competencies and Entry ModePressures for Cost Reduction and Entry ModeCopyright 2001 Houghton Mifflin Company. All rights re

14、served.8-11The Advantages and Disadvantages of Different Entry ModesEntry ModeAdvantagesDisadvantagesExportingAbility to realize location and experience-curve economiesHigh transport costsTrade barriersProblems with local marketing agentsLicensingLow development costs and risksInability to realize l

15、ocation and experience-curve economiesInability to engage in global strategic coordinationLack of control over technologyFranchisingLow development costs and risksInability to engage in global strategic coordinationLack of control over qualityJoint venturesAccess to local partners knowledgeShared de

16、velopment costs and risksPolitical dependencyInability to engage in global strategic coordinationInability to realize location and experience-curve economiesLack of control over technologyWholly owned subsidiariesProtection of technologyAbility to engage in global strategic coordinationAbility to re

17、alize location and experience-curve economiesHigh costs and risksTABLE 8.2Copyright 2001 Houghton Mifflin Company. All rights reserved.8-12Global Strategic AlliancesAdvantagesFacilitate entry into foreign markets.Enable partners to share fixed costs and risks associated with new products and process

18、es.Facilitate transfer of complementary skills between companies.Help establish technological standards.DisadvantagesRisk of giving away technological know-how.Risk of opening local market access to foreign alliance partner.Risk of not getting anything in return.Copyright 2001 Houghton Mifflin Company. All rights reserved.8-13Making Strategic Alliances WorkPartner selection when done well:He