This paper hopes to answer how increasing uncertainty is impacting International Management and how new and innovative companies like Tesla Inc conduct international expansion.
Economic activities in the 21st century, are characterized by dynamic global competition, the increasing interdependence and internationalization of economic relations and the resulting merging of world markets. With the continuous expansion of world trade and investment, with factors of production being highly mobile, and with the sources of innovation becoming increasingly global, an increasingly larger share of the global economy is reasonably accurately characterized as “open” it est as being exposed to the forces of global competition, and to the international flows of capital, technology and skilled labor.
Yet, the belief in globalization and free trade seems to be in disarray since the shocks of Brexit and Trump in 2016. In various regions of the world, a flare-up of nationalism, protectionism and trade barriers is creating a politically and economically volatile atmosphere. While 2019 and 2020 brought new obstacles - from customs tariffs to a global pandemic - this has led to a shift in framework conditions rather than an end to international competition. In addition, a lot of companies across various business sectors are entangled in extensive and expensive investment or restructuring programs brought upon by the ever-increasing pace of technological, sociological and legal developments. Still, there is uncertainty if these investments will one day pay off or turn out the be a charge in the wrong direction.
Between 1970 and 2018, FDI grew from 14.2 billion to 1.43 trillion US dollars, an increase of over 900 percent. Based on this rapid development, participation in international competition has become a matter of course - if not a necessity - for many companies, and their attention is focused on efficient conduct and value-adding administering of international activities.
This begs the question how internationally active companies with a global and decentralized value chain can fight rising uncertainty and react to constantly changing environments? How can these companies not only hold on to existing business but expand their dominance in the market against the backdrop of uncertainty? Are established strategy models such as Ghemawat's AAA model still applicable today, do they need to be revised or is there even a need for completely new approaches?
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Need for Rethinking International Strategy
- Structure, Aim and Research Method
- Conceptual Foundations of International Strategy Development
- Difficulty of Developing an International Strategy
- Emergence of basic Visions and Strategies of Internationalization
- Competition in Global Industries
- Convergence versus Divergence according to Levitt & Kotler
- Crossing Borders with the AAA-Model according to Ghemawat
- New Requirements for Strategy Concepts against the Backdrop of increasing Uncertainty
- A Shifting Playing Field: Uncertainty is challenging International Management
- Definition and Capture Options of Uncertainty
- Factors Influencing the Increase of Uncertainty in International Business
- Consequences of Increased Uncertainty for International Management
- Derivation of Requirements and Challenges for modern Strategy Concepts
- Challenges and Requirements
- Potential Approaches
- Comparative Analysis between the AAA Model and the Internationalization Process of Tesla Inc.
- Considered Aspects of Management and Business Structure
- Strategy: How to compete
- Presence: Where to Compete
- Architecture: How to Organize
- Discussion of the Analysis
- Results and Recommendations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis examines the need for rethinking international strategy in the face of rising uncertainty. It focuses on the internationalization process of Tesla Inc., utilizing the AAA model as a framework for analysis. The study aims to understand how companies can navigate global challenges, such as political volatility, economic slowdown, and technological disruption, in order to develop successful international strategies.
- The impact of increasing uncertainty on international strategy development.
- The challenges and requirements for modern strategy concepts in a volatile global environment.
- The application of the AAA model in analyzing the internationalization process of Tesla Inc.
- The identification of key factors influencing Tesla’s success in international markets.
- Recommendations for developing robust international strategies in the face of rising uncertainty.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter sets the stage for the thesis, highlighting the growing need for rethinking international strategy in the context of globalization, rising uncertainty, and the dynamic nature of business environments. It introduces Tesla Inc. as a case study and outlines the research objectives, structure, and methodology.
- Conceptual Foundations of International Strategy Development: This chapter explores the theoretical underpinnings of international strategy development, addressing the complexities of formulating and implementing effective international strategies. It delves into different visions and strategies of internationalization, including the concept of global competition, convergence versus divergence of markets, and the AAA model.
- New Requirements for Strategy Concepts against the Backdrop of increasing Uncertainty: This chapter examines the challenges posed by increasing uncertainty for international management. It analyzes the definition and measurement of uncertainty, identifies key factors contributing to this rise, and explores the consequences for international businesses. It then derives key requirements and potential approaches for developing robust strategies in the face of uncertainty.
- Comparative Analysis between the AAA Model and the Internationalization Process of Tesla Inc.: This chapter applies the AAA model to analyze Tesla’s internationalization process, focusing on the company’s strategy, presence, and organizational architecture. It assesses the effectiveness of Tesla’s approach in navigating global challenges and achieving success in international markets.
Schlüsselwörter (Keywords)
The central themes of this thesis revolve around international strategy, uncertainty, internationalization, Tesla Inc., the AAA model, global competition, technological disruption, and business model innovation. The research focuses on understanding the challenges and opportunities associated with international business in a rapidly changing global landscape, emphasizing the importance of adapting to evolving market dynamics and developing strategies that are both agile and resilient.
- Quote paper
- Moritz Henninger (Author), 2020, Rethinking International Strategy in Times of rising Uncertainty. The Internationalization of Tesla Inc., Munich, GRIN Verlag, https://www.grin.com/document/988308
