1. General Electric and International Involvement F GE Product Divisions: –Light bulbs –Aircraft engines –Appliances –Power-generation F GE Market Opportunity: –North America –Europe –Pacific rim / Asia –Emerging markets

2. GE’s Markets, Entry and Strategy Choices Product Lines Country-Markets InternationalStrategy 4 3 2 1 ABCD  

3. Entry Mode Decision Matrix Hi Lo HiLo Strategic Importance of Country Stand-alone Attractiveness of Country Lo Hi Resources,Control,Risk

4. Foreign Market Entry Modes F Export F Licensing F Joint Venture F WOS –Acquisition –Greenfield

5. Entry Mode Framework F Mindset F Country-market opportunity/cost analysis –Stand-alone Attractiveness –Strategic Importance F Resources-Control-Risk tradeoff

6. Mindset and International Activity F International –Overseas activities support / subordinate to domestic activities F Multinational –Flexibly adapting value-creating activities on country-by-country basis; nationally-responsive F Global –The world is the market; standardization F Transnational –“Glocalization” – Some value-creating activities standardized/globalized, others localized

7. Country-Market Analysis F Stand-alone attractiveness: –Size –Growth –Product acceptance / segmentation –Cultural similarity –Risk –Policy incentives –Other factors? ….MNC “power”?

8. Country-Market Analysis F Strategic importance : –Home market of global customer –Home market of global rivals –Significant market of global rivals –Major source of innovation –Demanding/sophisticated customers –Factor-cost advantages

9. Resources-Control-Risks F Resources –$$, time, technology, machinery, people, organizational, strategy F Control –Operational and strategic discretion over value-creating activities F Risks –Political, F/X, economic, cultural, dissemination

10. Control F Extent of involvement: F Channel control / ownership: Ship Product Marketing Distribution After-sales Support Mfg. Export Agent Import Agent Regional Whsle. Local Whsle. Retail

11. Entry Mode Decision Framework Licensing Exporting Intermediaries Direct Joint Venture Wholly-owned Subsidiary Control Resources Risk Control Resources Risk Dissem. LowLowLow HighHighHighLow High

12. Entry Mode Decision Matrix Hi Lo HiLo Strategic Importance of Country Stand-alone Attractiveness of Country Lo Hi Resources,Control,Risk