Formulating Intl Strategy - chapter 6 - presentation slides

Formulating Intl Strategy - chapter 6 - presentation slides...

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Formulating International  Strategy Dr. Paul Mudde MGT466
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Focus is on reducing costs to stay competitive in your  domestic market. Manufacturing, assembly, or parts of the value chain  are sourced from low cost producers in foreign  countries. Service companies are also pursuing offshoring as a  way to control expense. International business models:  Offshoring
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A company’s core capabilities remain in its primary  home market. International strategy extends its domestic strengths  to other foreign markets. Motives focus on increasing market size, improving  ROI on existing investments, and improving  economies of scale. International business models:  Domestic-based expansion
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Combination of sourcing from advantaged locations  and sales across several foreign markets. global reach. Motives include reducing costs, leveraging scale and  existing investments, location advantages, and  learning networks. International business models:  Multinational Corporation
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Reasons for going international Offshoring Domestic-based Expansion Multinational Corporation Globalization –  competitor / customers + + ++ Trade Barriers + ++ Cost-based 
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Formulating Intl Strategy - chapter 6 - presentation slides...

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