Why do companies expand into foreign markets?

to gain access to new customers, achieve lower costs through economies of scale, experience and increased purchasing power, exploit its core competencies, gain access to resources and capabilities, and spread its business risk across a wider market base

What is the difference between competing internationally and competing globally?

Competing internationally is a company's strategy for competing in two or more countries simultaneously. Competing globally means that the company uses the same competitive approach in each country.

How do cross-country differences affect how organizations should compete in foreign markets?

they may have to adjust their strategy differently for each market

What is multicountry competition?

Multi-country competition refers to situations where competition in one national market is largely independent of competition in another national market—there is no "international market," just a collection of self-contained country markets

What is global competition?

Global competition exists when competitive conditions across national markets are linked strongly enough to form a true world market and when leading competitors compete head-to-head in many different countries.

Identify and describe the 6 major strategic options for entering and competing in foreign markets.

1.locate val. chain act. among ntns. dat lower costs/+ prod. differentiation. 2.efficient transfer of comp. val. competency/capability from dom. mkts to forgn mkts. 3.broaden resource strengths & coord dispersed activities in way dat dom. comp. cant

What are 3 ways that firms can gain a competitive advantage by expanding outside its domestic market?

1.locate value chain act. among ntns. that lowers costs/+ prod. differentiation. 2.efficient&effective transfer of comp. valuable competencies/capabilities from dom. mkts to foreign mkts. 3.deepen/broaden resource strengths&capabilities & coord dispersed

What are profit sanctuaries?

Profit sanctuaries are country markets that provide a company with substantial profits because of a strong or protected market positions.

What is cross-market subsidization?

supporting competitive offensives in one market with resources and profits diverted from operations in another market - can be a powerful competitive weapon.

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Strategic Mgmt 7

Question	Answer
Why do companies expand into foreign markets?	to gain access to new customers, achieve lower costs through economies of scale, experience and increased purchasing power, exploit its core competencies, gain access to resources and capabilities, and spread its business risk across a wider market base
What is the difference between competing internationally and competing globally?	Competing internationally is a company's strategy for competing in two or more countries simultaneously. Competing globally means that the company uses the same competitive approach in each country.
How do cross-country differences affect how organizations should compete in foreign markets?	they may have to adjust their strategy differently for each market
What is multicountry competition?	Multi-country competition refers to situations where competition in one national market is largely independent of competition in another national market—there is no "international market," just a collection of self-contained country markets
What is global competition?	Global competition exists when competitive conditions across national markets are linked strongly enough to form a true world market and when leading competitors compete head-to-head in many different countries.
Identify and describe the 6 major strategic options for entering and competing in foreign markets.	1.locate val. chain act. among ntns. dat lower costs/+ prod. differentiation. 2.efficient transfer of comp. val. competency/capability from dom. mkts to forgn mkts. 3.broaden resource strengths & coord dispersed activities in way dat dom. comp. cant
What are 3 ways that firms can gain a competitive advantage by expanding outside its domestic market?	1.locate value chain act. among ntns. that lowers costs/+ prod. differentiation. 2.efficient&effective transfer of comp. valuable competencies/capabilities from dom. mkts to foreign mkts. 3.deepen/broaden resource strengths&capabilities & coord dispersed
What are profit sanctuaries?	Profit sanctuaries are country markets that provide a company with substantial profits because of a strong or protected market positions.
What is cross-market subsidization?	supporting competitive offensives in one market with resources and profits diverted from operations in another market - can be a powerful competitive weapon.

Created by: bp1189

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