4 WBMH Framework for Global Strategy Analysis

4 WBMH Framework for Global Strategy Analysis - WBMH...

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Unformatted text preview: WBMH Framework 1 Click to edit Master subtitle style MOR 492 Global Strategy WBMH An Overview Framework for Global Strategy Analysis WBMH Framework 2 MOR 492 Global Strategy The “Radio” Model Framework W Why go global? What is the motivation, goals, intended end outcomes? B What does the firm bring (and what will “travel”) to the global market opportunity? And what can you BUILD H How should the firm enter the global market? How should it organize itself? M What will/should/can the firm expect to meet when it goes global? Source: WBMH is built on idea from Porter WBMH Framework 3 MOR 492 Global Strategy Motivations/Imperative 1. Growth Imperative: pursuing new sources of volume by finding “Q” in new global markets ◆ “Replication” of existing business model in new location 2. Efficiency Imperative: ◆ pursuing low cost raw materials, labor, etc. u “Arbitrage” is using involved in some way ◆ economies of scale and scope u Minimum efficient scale may be bigger than any single market ◆ reducing distribution costs, inventory costs, etc Why? WBMH Framework 4 MOR 492 Global Strategy Motivations/Imperative 3. Knowledge Imperative: continuous learning u markets change, u consumer’s tastes and needs change, u competitors innovate and adapt, u technology “jumps” 4. Globalization of Customers: when customers start to go global, firms must keep pace with them or lose overseas and domestic business to new rivals 5. Globalization of Competitors: u Rivals may capture global first mover advantages u Rival may be able to use multi-market presence to cross-subsidize an attack on a firm’s home market Why? WBMH Framework 5 MOR 492 Global Strategy Transferring Competitive Advantages, Core Competencies and Capabilities u What “travels” from a firm’s strategy (business model) to the new global market?...
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This note was uploaded on 02/25/2009 for the course MOR 492 taught by Professor Voigt during the Spring '07 term at USC.

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4 WBMH Framework for Global Strategy Analysis - WBMH...

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