executive summary

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Competition in Global Industries: A Conceptual Framework Executive summary First and primary, the important aspect to note and to discuss is the creation and sustainability of competitive advantage of multinational competition in the Global world and how strategies formed by each firm contributes to competitive advantage. Patterns of international competition1.Analysis in setting international strategy are the industry. Multidomestic industries are essentially independent of competition in other countries. A firm can and should manage its international activities like a portfolio. Country-centered strategy, Global industry is an industry in which a firm’s competitive position in one country is significantly affected by its position in other countries or vice versa. A firm must in some way integrate its activities on a worldwide basis to capture the linkages among countries. Causes of Globalization an industry can be defined as global if there is some competitive advantage to

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Competition in Global Industries: A Conceptual FrameworkExecutive summaryFirst and primary, the important aspect to note and to discuss is the creation and sustainability of competitive advantage of multinational competition in the Global world and how strategies formed by each firm contributes to competitive advantage.

Patterns of international competition1.Analysis in setting international strategy are the industry. Multidomestic industries are essentially independent of competition in other countries. A firm can and should manage its international activities like a portfolio. Country-centered strategy, Global industry is an industry in which a firms competitive position in one country is significantly affected by its position in other countries or vice versa. A firm must in some way integrate its activities on a worldwide basis to capture the linkages among countries.

Causes of Globalization an industry can be defined as global if there is some competitive advantage to integrating activities on a worldwide basis. A firm may possess two types of competitive advantages; low costs and differentiation. Value Chain Theory the activities performed by a firm in any industry is grouped into the nine categories and the nine group is divided by support activities and primary activities. Prime activities: involves physical creation of the product or service.

Competitive Scope breaths of activities the firm employs together in competing in an industry. There are four basic dimensions of competitive scope:a. Segment scope (ange of segments a firm serves, e.g. product varieties).b. Industry scope (range of industries the firm competes in)c. Vertical scope (activities performed versus suppliers & channels)d. Geographic scope (geographic region the firm operates in)International Configuration and Coordination of activities are the significant component of the firm. It must indicate how to spread the activities in the value chain among countries. There are two key dimensions of how a firm competes. One is configuration which is where each activity is performed, concentration (one location serving world) and dispersion (every activity in each country). Another one is coordination which is how activities are performed and options rage from none to high. In the point, market presence in many countries and some exports and import of components end products are characteristic of most global industries.

Configuration or Coordination and Competitive Advantage is the factor for concentrating an activity in one or a few locations as follow: Economies of scale in the activity A proprietary learning curve in the activity Comparative advantage in where activity is performed Coordination advantages of co-locating linked activities such as R& D and production Structural characteristics since the costs are concentrated. Local product needs differ since there are no advantages of scale or learning from onsite operation. Greater responsiveness Cheaper transport, communication and storage costs Governments (support) Minimizing exchange risk, political risk (Dispersion of risk) Coordination allows sharing of know-how among dispersed activities, reinforce a firms brand reputation with buyers through ensuring a consistent image and approach to doing business worldwide Coordination allows to serve products in a consistent way & enhance leverage with local governments Increase Transaction costs of coordination -> long distances, language problems & cultural barriers to communication Country subsidiaries often view each other more as competitors than collaborators

Configuration/Coordination and the Pattern of International Competition discuss about the competitive advantage from a global strategy differs among industry. Firm's choice of international strategy involves a search for competitive advantage from configuration/coordination throughout the value chain. The firm may standardize concentration some activities.

Global strategy and comparative advantage is traditional view of competitive advantage grows out of where a firm performs activities, and location of activities is clearly one source of potential advantage in a global firm. It not only involves production activities, but also applies to other activities in the value chain. Moreover, comparative advantage is specific to the activity and not to the location of the value chain as a whole. Hence, global firm can spread activities among locations to reflect different preferred locations for different activities.

Global Platforms is the interaction of the country which is a desirable global platform in an industry if it provides an environment yielding firms domiciles in that country an advantage in competing globally. In global competition, a country must be viewed as a platform and not as the place where all a firm's activities are performed. Comparative advantage is the platform particular activities in the industry such as skilled workers, advanced infrastructure and so on.

Strategic Implications of Globalization is global industries are overall system matters as much or more than country