Modern companies are trying to gain an advantage over their competitors. Most
of them are finding that a good way to gain such an advantage is through the
complex process of going global. By doing so, enterprises can extend their
product lines to other countries and cultures. They can also save money on
labour costs by taking advantage of the lower standard of living in some
countries. Global expansion enables a company to add value by transferring
core skills overseas, using global volume to cover product development costs,
realizing economies of scale from global volume, and configuring value-creation
functions in locations where value added is maximized. Companies pursuing
global strategies can gain cost economies by integrating manufacturing,
marketing, and competitive strategies across national boundaries, but they must
give up a certain degree of responsiveness to national conditions.
This study looks at the strategies companies adopt when they expand outside
their domestic marketplace and start to compete on a global basis.
The first chapter starts with a discussion how global expansion creates
important values for companies.
The second chapter examines different strategies which companies can pursue
in the global arena. These four different strategies are reviewed in detail - the
international strategy, the multidomestic strategy, the global strategy, and last
but not least the transnational strategy. Furthermore the pros and cons of each
of these strategies are debated. In addition the link between the
appropriateness of different strategies and the pressures of cost reductions and
local responsiveness is made.
In the next section the various basic options a company has for entering a
foreign market - exporting, licensing, strategic alliances, joint ventures,
franchising, turnkey projects, foreign direct investment, acquisitions and the
establishment of a wholly owned subsidiary as well as e-Commerce - are
reviewed in detail. Finally, the last section gives a brief summary with important
concluding remarks.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Background Information
- Globalisation
- The History of Globalization
- Indicators of Globalization
- World trade
- People movement and transport
- Increasing communication processes
- Internationalisation of culture
- Global Strategies of Internationalization
- Introduction
- Identify International Opportunities
- Types of International Strategies
- International Strategy
- Multidomestic Strategy
- Global Strategy
- Transnational Strategy
- Summary
- Entry Modes
- Management Problems & Risks
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study explores the strategies companies utilize when expanding beyond their domestic markets and entering the global competitive landscape. It examines the advantages and disadvantages of different internationalization strategies, including the international strategy, multidomestic strategy, global strategy, and transnational strategy. It also delves into various entry modes for foreign markets, such as exporting, licensing, strategic alliances, joint ventures, and foreign direct investment.
- The benefits and challenges of global expansion for companies.
- A comparison of different internationalization strategies and their respective advantages and disadvantages.
- The link between different strategies and the pressures of cost reduction and local responsiveness.
- An overview of various entry modes for foreign markets.
- The potential management problems and risks associated with internationalization.
Zusammenfassung der Kapitel (Chapter Summaries)
The introductory chapter discusses the value creation potential of global expansion for companies. It highlights how companies can gain a competitive advantage through internationalization by extending product lines, reducing labor costs, and optimizing value creation functions.
Chapter 2 provides a comprehensive overview of globalization. It examines its definition, history, and key indicators. It further explores the various aspects of globalization, such as its impact on trade, people movement, communication, and culture.
Chapter 3 delves into the different global strategies that companies can adopt. It reviews the international strategy, multidomestic strategy, global strategy, and transnational strategy, analyzing their respective advantages and disadvantages. The chapter also examines the relationship between these strategies and the pressures of cost reduction and local responsiveness.
Chapter 4 focuses on the various entry modes for foreign markets. It explores options such as exporting, licensing, strategic alliances, joint ventures, franchising, turnkey projects, foreign direct investment, acquisitions, establishing wholly owned subsidiaries, and e-commerce.
Schlüsselwörter (Keywords)
The study focuses on the strategies and challenges of internationalization. It explores key concepts such as globalization, international strategy, multidomestic strategy, global strategy, transnational strategy, entry modes, cost reduction, local responsiveness, and management problems.
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- Kathrin C. Hägele (Author), 2006, International Management, Munich, GRIN Verlag, https://www.grin.com/document/55004
