Chap012国际商务.pptVIP

Wal-Marts Global Expansion Advantages of global expansion Location economies Cost economies from experience effects Leveraging core competencies Leveraging subsidiary skills Location economies Realized by performing a value creation activity in an optimal location anywhere around the globe. For example, Japan might excel in the production of automobiles and customer electronics; the United States in the production of computer software and financial services; Switzerland in the production of precision instruments; South Korea in the production of semiconductors; and China in the production of apparel. Location economies It can lower costs of value to enable low cost strategy and/or help in differentiation of products from competitors. In terms of figure12.1,it can lower C and/or increase V( which in general supports higher pricing ),both of which boost the profitability of the enterprise. Location economies Location economies Global web: different stages of value chain are dispersed to those locations where perceived value is maximized or costs of value creation are minimized Case study: Lenovo Lenovo purchased IBM’S PC business In 2005 Lenovo announced the completion of the United States of America IBM’s personal computer (PC) purchase of a business. The development of Lenovo is constantly along with the adjustment of industrial structure, the globalization of the world economy, through mergers and acquisitions, gradually concentrated, internationalization, and globalization. Case study: Lenovo Engineers in the United States design this product because Lenovo believes the United States is the best location in the world to do the basic design work. The case, keyboard, and hard drive are made in Thailand; the display screen and memory in South Korea; the built-in wireless card in Malaysia; and the microprocessor in the United States . Case study: Lenovo In this case, Lenovo manufactures and sources components from the optimal location giv