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Characteristics of Global Competition Competitive conditions across country markets are strongly linked together Many of same rivals compete in many of the same country markets Rivals vie for worldwide leadership A true international market A firm competitive position in one country is affected by its position in other countries A firm overall competitive advantage is based on its entire world-wide operations Types of International Strategies Licensing Exporting Multicountry strategy Global low-cost strategy Global differentiation strategy Global focus strategy Global best-cost strategy Multi-Country Strategy Strategy in each country market is matched to local market circumstances Different country strategies are called for when Buyers in one country want a product that is different from buyers in another country Host government regulations preclude uniform global approach Two drawbacks 1. Poses problems of transferring competencies across borders 2. Works against building a unified competitive advantage Global Strategy Strategy for competing is similar in all country markets Involves Coordinating strategic moves globally Selling in many, if not all, nations where significant market exists Works best when products and buyer requirements are similar from country to country Competitive Strategy Principle A global strategy works best in markets that are globally competitive or beginning to globalize! A multi-country strategy is appropriate for industries where multi-country competition dominates! Global Strategy andCompetitive Advantage Two avenues to gain competitive advantage 1. Locating activities among nations to lower costs or achieve greater product differentiation 2. Coordinating dispersed activities in ways domestic-only competitor cannot Principle of Competitive Markets With a global strategy, a firm can pursue sustainable competitive advantage by locating activities in the most advantageous countries and coo
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