Strategic Management Chapter 10

1 / 19
In Porter's Diamond of National Competitive Advantage, which 4 things lead to national competitive advantage?
Click the card to flip 👆
Terms in this set (19)
why do firms go global?resource seeking, market seeking, efficiency seeking, and asset seekingwhat are the 3 difficulties in going global?liabilities of foreignness, reputation, and intellectual propertywhat are liabilities of foreignness?the additional costs of doing business in an unfamiliar cultural and economic environment and the difficulties of coordinating across geographic distancesownership advantagesallows company to overcome liabilities of foreignness (brand name, tech, economies of scale)what is CAGE framework?cultural differences, administrative and political, geographic, and economicinternational strategyLOW cost pressure and LOW local responsiveness pressure takes products first produced for the domestic market and sells them internationally with minimal local customization ex: luxury goodsglobal standardization strategyHIGH cost pressure and LOW responsiveness pressure goal is to produce a low-cost strategy on a global scale. They achieve this through cost reductions that come with economies of scale, learning effects, and location economiesmultidomestic strategyLOW cost pressure, HIGH local responsiveness pressure focuses on increasing profitability by customizing the firm's goods or services so they match the tastes and preferences of different national markets. low cost pressuretransnational strategyHIGH cost pressure and HIGH local responsiveness pressure try to simultaneously achieve low costs and differentiation of product offerings to account for local differences achieve this strategy by centralizing certain value chain activities and de centralizing others that need to be adopted .