Professional Documents
Culture Documents
Business Strategy Viii Corp Level
Business Strategy Viii Corp Level
ADVANTAGE OF NATIONS
• Firm Strategy, Structure & Rivalry
• Factor Conditions
• Demand Conditions
• Role of Government
• Related & Supporting Industries
• Serendipity
• This has been called the National
Diamond
CONTEXT FOR
INTERNATIONALISATION
• Since World War II international tradehas grown
dramatically
• Technological developments have eased
transportation
• Improvement in Communications Technology
• Falling of Tariff Rates
• Globalisation of markets, trade, finance,
technology, communications & labour(Partially)
SOME EXAMPLES FROM
INDIA
• Indian IT industries got a boost from
availability of IT labour at lower costs
• They looked for foreign customers to
outsource
• Semi-conductor industries for computer
hardware
• City clusters of IT companies
• Global market led to economies of scale
TYPES OF INTERNATIONAL
STRATEGIES
• Cost Pressures impel companies to look for
economies of scale and locational advantage- a
globally standardised product being produced
in a single location with a world-wide market
• Pressures for local responsiveness- catering to
the local market with its preferences, Govt.
policies etc.,
• That seem to be against each other but the
latter provides a cushion against global fluxes
and upheavals
SOME EXAMPLES FROM
INDIA
• Indian Pharma industries benefited
from the protectionist policies
through 70s & 80s
• Upstream Supplier industries
• Large population- large market for
medicines
• Large & small companies in the
organised and unorganised sectors
FOUR TYPES OF
INTERNATIONAL STRATEGIES
• “International” Strategy- transfer products
& services, tight control, standardised
products across with little or no
differentiation
• Multidomestic Strategy- have autonomous
or semi-autonomous companies in
different countries with each having its
own supply chain within that country
FOUR TYPES OF
INTERNATIONAL STRATEGIES
• Global Strategy- emphasis on low costs,
locating its various operations in optimum
locations irrespective of political borders and
operating as if the whole world was one unit
• Transnational Strategies- a combination of low
costs and high local responsiveness- the flow
of expertise from developed countries to
developing companies both ways- global
learning
INTERNATIONAL ENTRY MODES