M110+11+Session+8+-+post+class

M110+11+Session+8+-+post+class - Lecture Outline Global...

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Lecture Outline lobal Strategies: Pros & Cons Global Strategies: Pros & Cons ome Origin vs CAGE distance Home Origin vs. CAGE distance ntry Mode & Configuration • Entry Mode & Configuration
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Dell goes to China If we’ve not in what Strategic decisions S hina Dell became China’s largest computer system rovider in just will soon be the second-biggest PC market in the world, en how can Dell Vehicles U.S. Assemble and distribute itself China Partner provider in just 5 years then how can Dell possibly be a global player? Staging Consumers first, then corporations Corporations first
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Key factors – global economies of cale scale ey factors Global expansion may be attractive if it Key factors Global economies of scale harmaceutical firms such as Pfizer can allows you to leverage fixed assets over new markets Pharmaceutical firms such as Pfizer can leverage large R&D budgets CitiGroup, McDonald’s, and Coca-Cola an leverage brands can leverage brands MITY can leverage its excess capacity to produce chairs and thereby reduce verage costs average costs
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Key factors – location ey factors Choosing the right location can Key factors Global economies of scale Location Input costs Competitors provide advantages in terms of Demand conditions Regulatory environment Presence of complements A five-forces analysis can help reveal e attracti eness of a location the attractiveness of a location
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Key factors – multipoint competition ey factors Expanding into a new market may Key factors Global economies of scale Location provide an opportunity for a “stronghold assault” For example, French tire-maker Michelin Multipoint competition had negligible presence in the U.S. in the 1970s. It learned of Goodyear’s plans to expand into Europe, so it launched a ounter attack. It started selling tires in counter attack. It started selling tires in the U.S. at or below cost, and thereby forced Goodyear to drop prices and cut profits in its core market
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Key factors – learning and nowledge sharing knowledge sharing ey factors Expanding into a new market can create Key factors opportunities to innovate, improve existing products in existing markets, or develop ideas for new markets Global economies of
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This note was uploaded on 08/16/2011 for the course MGMT 110 taught by Professor Zhang during the Spring '11 term at UC Irvine.

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M110+11+Session+8+-+post+class - Lecture Outline Global...

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