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STRATEGIES por Mind Map: STRATEGIES

1. Increasing profitability and profit growth through global expansion

1.1. Expanding the market

1.1.1. multinational companies

1.2. Realizing cost economies from global volume

1.2.1. economies of scale

1.2.2. Utilize its production facilities more intense

1.2.3. Increase the size of the enterprise

1.3. Realizing location economies

1.3.1. Performing value creation activities in the best place

1.4. Leveraging the skills of global subsidiaries

2. National Competitive Advantage (Porter)

2.1. Factor Endowments (raw materials, labor, capital)

2.2. Local Demand Conditions (upgrading competitive advantage)

2.3. Competitiveness of related and supporting industries (internationally competitive suppliers or related industries)

2.4. Intensity of rivalry ( different nations are characterized by different management ideologies and strong association between domestic rivalry and competitive advantage)

2.5. Using the framework (help decide where to locate certain activities)

3. The Globalization of Products and Markets

3.1. Industry Borders do not stop at national borders

3.2. Going from national to global has intensified rivalry in many industries

3.3. Creation of enormous opportunities

4. Global Environment

4.1. Cost Pressures and local responsiveness

4.1.1. Cost reductions: more intense in commodities

4.1.2. Local Responsiveness: differences in customer tastes and preferences

4.1.2.1. Differences in customer tastes

4.1.2.2. Differences in infrastructure

4.1.2.3. Differences in distribution

4.1.2.4. Host government demands

4.2. Choosing a global strategy

4.2.1. Global standardization

4.2.2. Localization strategy

4.2.3. Transnational strategy

4.2.4. International strategy

4.2.5. Changes in strategy over time

4.3. Choice of entry mode

4.3.1. Exporting

4.3.1.1. location economies

4.3.2. Licensing

4.3.2.1. low development costs and risks

4.3.3. Franchising

4.3.3.1. low development costs and risks

4.3.3.2. How Franchising Works: An illustrated guide

4.3.4. Joint Ventures

4.3.4.1. Political dependency

4.3.5. Wholly Owned

4.3.5.1. Protection of technology

4.4. Global Strategic Alliances

4.4.1. Advantages: facilitate entry in foreign markets, share fixed costs, complimentary skills

4.4.2. Disadvantages: don't five away more than you receive

4.4.3. Making strategic alliances work

4.4.3.1. Partner selection

4.4.3.2. Alliance structure

4.4.3.3. Managing the alliance

5. Corporate-Level

5.1. Horizontal Integration

5.1.1. Benefits: lower cost structure, increased product differentiation, leveraging a competitive advantage more broadly, reduced industry rivalry, increased bargaining power.

5.1.2. Problems: different company cultures, high management turnover, hostility

5.2. Vertical Integration

5.2.1. forward

5.2.2. backward

5.2.3. Increasing profitability

5.2.3.1. Facilitating investments in specialized assets

5.2.3.2. Holdup

5.2.3.3. Tapered integration

5.2.3.4. Enhacina product quality

5.2.3.5. Improved scheduling

5.2.4. Probems

5.2.4.1. Increasing cost structure

5.2.4.2. Technological change

5.2.4.3. Demand unpredictability

5.2.5. Alternatives to vertical integration

5.2.5.1. Short-term contracts

5.2.5.2. Strategic alliances and long-term contracting

5.2.5.3. Building long-term cooperative relationships

5.2.5.3.1. hostage taking

5.2.5.3.2. Credible commitments

5.2.5.3.3. Maintaining market discipline

5.3. Strategic Outsourcing

5.3.1. Benefits

5.3.1.1. Lower cost structure

5.3.1.2. Enhanced differentiation

5.3.1.3. Focus on the core business

5.3.1.4. Ventajas del Outsourcing

5.3.2. Risks

5.3.2.1. Holdup

5.3.2.2. Increased competition

5.3.2.3. loss of information