Concepts, Models & Discussion Questions Global Strategies Concepts, Models & Discussion Questions
Examples Finland vs. U.S. (60x) & China (250x) Cell phones Soft drinks Shampoo Fast food PCs Video games Labor costs: U.S. vs. China
Why globalize? Expand global market share Restructure value chain on a global scale Ultimate goal
What changes do global companies have to face? Market size Complexity of foreign markets Buyers New entrants Rivalry
National differentiation What are the two potentially conflicting dimensions in global strategies? Global integration National differentiation
Pankaj Ghemawat’s CAGE Model: Cultural distance How are markets different across borders and what are the implications? Pankaj Ghemawat’s CAGE Model: Cultural distance Administrative and political distance Geographic distance Economic distance
Three types of global strategies: What are they? Global strategy Multi-domestic strategy Transnational strategy
Why are there clusters of companies in certain industries and countries? Porter’s Diamond Model of Competitive Advantage of Nations Demand Conditions Factor Conditions Related and Supporting Industries Strategy, Structure and Rivalry
What are the common market entry modes? Exporting Licensing Strategic alliances Greenfield investments M&As
Bartlett and Ghosal’s Classifications: Decentralized federations What are the appropriate organizational structures for global companies? Bartlett and Ghosal’s Classifications: Decentralized federations Centralized hubs Coordinated federations
Group discussion: Answer 2 questions 1. What has been CEMEX’s competitive advantages in the global cement industry? How transferable are these competitive advantages across borders? 2. What has been CEMEX’s primary entry mode in international markets? Explain the logic behind the use of this entry mode. 3. What has been the path of CEMEX’s international market expansion. Explain the logic. 4. What challenges and opportunities does CEMEX face in the global cement industry? What would you recommend to the company in order to survive and thrive in the competition with other global competitors? (Required)