Global Strategies

1
Global Strategies

• Concepts, Models
• Discussion Questions

2
Examples

• Finland vs. U.S. (60x) China (250x)
• Cell phones
• Soft drinks
• Shampoo
• Fast food
• PCs
• Video games
• Labor costs U.S. vs. China

3
Why globalize?

• Expand global market share
• Restructure value chain on a global scale
• Ultimate goal

4
What changes do global companies have to face?

• Market size
• Complexity of foreign markets
• Buyers
• New entrants
• Rivalry

5
What are the two potentially conflicting
dimensions in global strategies?

• Global integration
• National differentiation

6
How are markets different across borders and what
are the implications?

• Pankaj Ghemawats CAGE Model
• Cultural distance
• Administrative and political distance
• Geographic distance
• Economic distance

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Three types of global strategies What are they?

• Global strategy
• Multi-domestic strategy
• Transnational strategy

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Why are there clusters of companies in certain
industries and countries?

• Porters Diamond Model of
• Competitive Advantage of Nations
• Demand Conditions
• Factor Conditions
• Related and Supporting Industries
• Strategy, Structure and Rivalry

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What are the common market entry modes?

• Exporting
• Licensing
• Strategic alliances
• Greenfield investments
• MAs

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What are the appropriate organizational
structures for global companies?

• Bartlett and Ghosals Classifications
• Decentralized federations
• Centralized hubs
• Coordinated federations

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Group discussion Answer 2 questions

• 1. What has been CEMEXs competitive advantages
  in the global cement industry? How transferable
  are these competitive advantages across borders?
• 2. What has been CEMEXs primary entry mode in
  international markets? Explain the logic behind
  the use of this entry mode.
• 3. What has been the path of CEMEXs
  international market expansion. Explain the
  logic.
• 4. What challenges and opportunities does CEMEX
  face in the global cement industry? What would
  you recommend to the company in order to survive
  and thrive in the competition with other global
  competitors? (Required)