1. © Professor Daniel F. Spulber Analytical Frameworks

2. 2 First key framework The global competitive strategy “Star Analysis” The “Star Analysis” provides a way to organize our thoughts and knowledge about geography and international business The “Star Analysis” provides information for the international business manager to develop a competitive strategy

3. 3 Global Competitive Strategy The international business firm’s competitive advantage depends on five major drivers: Home country Supplier countries Customer countries Partner countries Competitor countries

4. 4 Supplier countries Customer countries Competitor countries Partner countries International business Home country The global competitive strategy star

5. 5 The international business “Star Analysis” Gather country data from global mosaic Information needed to design competitive strategy Star Analysis

6. 6 Home country features – headquarters Company globalization – Launching pad Company history and culture Managers’ background Brand nationality Corporate governance Home market Political, legal, regulatory climate Global Competitive Strategy

7. 7 Supplier country features – production and procurement Worker wages and productivity Technology Finance capital Factor supplies Supplier firms Political, legal, regulatory climate Operating costs/risks Global Competitive Strategy

8. 8 Customer country features – distribution and sales Customer preferences Elasticity of demand Income per capita and income distribution Customer knowledge Distribution infrastructure Society and culture Political, legal and regulatory climate Global Competitive Strategy

9. 9 Partner countries – Demand-side and supply-side complements Complementary products Complementary technology Complementary capabilities Market knowledge Political, legal, regulatory climate Global Competitive Strategy

10. 10 Competitor countries Home, supplier, customer, and partner countries of competitors Global and local competitors Customer and supplier bypass competition Political, legal and regulatory climate – trade agreements, home-country policies Global Competitive Strategy

11. 11 Location, location, location – key role of geography Where to produce and find suppliers? Where to target customer markets? Where to find best partners Where are competitors coming from, serving and seeking suppliers Global competitive strategy – integrate economic and geographic forces for competitive advantage Global Competitive Strategy