Global Strategies

Concepts, Models &

Discussion Questions
Examples
 Finland vs. U.S. (60x) & China (250x)
 Cell phones
 Soft drinks
 Shampoo
 Fast food
 PCs
 Video games
 Labor costs: U.S. vs. China
Why globalize?
 Expand global market share
 Restructure value chain on a global scale
 Ultimate goal
What changes do global
companies have to face?
 Market size
 Complexity of foreign markets
 Buyers
 New entrants
 Rivalry
What are the two potentially conflicting
dimensions in global strategies?

 Global integration
 National differentiation
How are markets different across borders
and what are the implications?

Pankaj Ghemawat’s CAGE Model:

 Cultural distance
 Administrative and political distance
 Geographic distance
 Economic distance
Three types of global
strategies: What are they?
 Global strategy
 Multi-domestic strategy
 Transnational strategy
Why are there clusters of companies
in certain industries and countries?

Porter’s Diamond Model of

Competitive Advantage of Nations
• Demand Conditions

• Factor Conditions

• Related and Supporting Industries

• Strategy, Structure and Rivalry

What are the common market
entry modes?
 Exporting
 Licensing
 Strategic alliances
 Greenfield investments
 M&As
What are the appropriate organizational
structures for global companies?

Bartlett and Ghosal’s Classifications:

 Decentralized federations
 Centralized hubs
 Coordinated federations
Group discussion:
Answer 2 questions
1. What has been CEMEX’s competitive advantages in the global
cement industry? How transferable are these competitive
advantages across borders?

2. What has been CEMEX’s primary entry mode in international

markets? Explain the logic behind the use of this entry mode.

3. What has been the path of CEMEX’s 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)