International Strategy Readings

Toward a Theory of Stakeholder Identification
Stakeholder Attributes and Salience
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Competitive advantage occurs when a company is utilizing a value creating strategy that no competitors are simultaneously using. A sustainable advantage is the same, but a strategy which cannot be copied by any other firm. This doesn't mean it will last forever, but only that it cannot be competed away. Resources must follow VRIO
Need different strategy than one from home
Must work around institutional voids
Tend to choose countries based on bandwagon, personal feelings, anecdotal evidence, etc
Composite Indices don't tell whole story
Need to study 5 contexts: political/social, openness, product, labor, and capital markets
3 Options: adapt business models, change context, or avoid non-congruent countries
Managing Differences Explain AAA TriangeAdaptation: increase local relevance (advertising) Aggregation: economies of scale, standardize (R&D) Arbitrage: exploit differences in markets (labor) Must prioritize between, can do 2Assessing Porter's Competitive Advantage of Nations SummarizeDiscussion of Porter's Diamond (factor influences, demand, related industries, and firm strategy, structure and rivalry) Offers more detail than Hecksher-Ohlin type models and focuses on dynamism and tech Upgrading = achieving higher competitive advantage, but more complex and less precise Assumes a link between firm advantage and national prosperity and productivity Diamond provides detail, lacks predictive qualityStrategy from the Outside In SummarizeInside-out focuses on assets already in play and gaining efficiency Outside in focuses on creating value for customers, requires customer insights Market insight = durable competitive advantage 4 imperatives: be a customer value leader, innovate new value for customers, view customers as an asset, view brand as an assetExplain the Bel CaseStarted as small family operation in France Expanded abroad through acquisition Expanded product lines Fear hostile takeover via stock shares Conflicts among generations Switch from M&A to product innovation Created foothold in Vietnam GOODI Project - combat malnutritionMyth of Globalization SummarizeGlobalization implies that customers are getting more homogenous, people want low prices more than specific features, global = economies of scale --- not necessarily true Globalization only works if there's a global market, synergies from standardization, and global distribution infrastructure...therefore not suitable for all companies and productsGlobalization of Markets SummarizeMust learn to operate as if world is one market Technology has led to convergence of preferences Assume customers will buy products for high quality, low cost Hedgehog vs Fox, be a hedgehog Hoover example - Italians would like a cheaper washing machine with less modification The world is getting flatter (also fatter. Oh wait...that's just me)