8 Global Strategic Management RTU 2014
11/19/2014
Contemporary Issues in
Global Strategic
Management
OUTLINE
1.Strategic logic of global vision development
2.Four strategic alternatives that MNCs may adopt
3.Designing the MNC
1. What is the logic of portfolio in international strategic vision development?
1
11/19/2014
QSPM matrix. AMAZON.COM.
International strategy
Strategic Alternatives
Key Internal Factors
Strengths
Customer satisfaction
Copyright to One-click online shopping
Humanitarian efforts
Strong Research & Development
Exclusive agreements with Internet sites (Associates)
Ability to track customized interests through customized home page
Formation of strategic alliances
Agreement with AOL
Weaknesses
Accumulated deficits/Anticipates further losses
Financial position
Slowing growth, core business-U.S. Books, & Music
Video
Lawsuit with Barnes & Noble over patent to 1 click method Class action suits filed by stockholders
Does not have a mission statement
SUBTOTAL
Weight
0.10
0.08
0.03
0.09
0.01
0.02
Enter into strategic agreements w/physical retailers
AS
TAS
4
0.40
2
0.02
-
Expand European presence through strategic alliances
AS
TAS
2
0.20
4
0.04
-
0.11
0.09
4
3
0.44
0.27
2
2
0.22
0.18
0.11
0.07
0.08
1
3
2
0.11
0.21
0.16
2
2
4
0.22
0.14
0.32
0.03
-
-
-
-
0.04
0.05
1.00
4
-
0.16
1.77
3
-
0.12
1.44
QSPM matrix. AMAZON.COM.
International strategy
Key External Factors
Opportunities
Continuous increase of internet users–502.5 mill by 2003
Increasing business-to-consumer e-commerce
US Internet economy projections $1.3 trillion by 2002
European online projections 3.1 trillion by 2004
Some Brick & Mortar companies lack online technology expertise Hispanics fastest growing population
Threats
People use Amazon to find information, but don’t buy
Seasonality of internet usage & revenue generation
Economic downturn or recession imminent
Low consumer confidence levels
Competition
Security/Privacy of information concerns
Internet taxation
Market valuation concerns
SUBTOTAL
SUM TOTAL
Contemporary Issues in
Global Strategic
Management
OUTLINE
1.Strategic logic of global vision development
2.Four strategic alternatives that MNCs may adopt
3.Designing the MNC
1. What is the logic of portfolio in international strategic vision development?
1
11/19/2014
QSPM matrix. AMAZON.COM.
International strategy
Strategic Alternatives
Key Internal Factors
Strengths
Customer satisfaction
Copyright to One-click online shopping
Humanitarian efforts
Strong Research & Development
Exclusive agreements with Internet sites (Associates)
Ability to track customized interests through customized home page
Formation of strategic alliances
Agreement with AOL
Weaknesses
Accumulated deficits/Anticipates further losses
Financial position
Slowing growth, core business-U.S. Books, & Music
Video
Lawsuit with Barnes & Noble over patent to 1 click method Class action suits filed by stockholders
Does not have a mission statement
SUBTOTAL
Weight
0.10
0.08
0.03
0.09
0.01
0.02
Enter into strategic agreements w/physical retailers
AS
TAS
4
0.40
2
0.02
-
Expand European presence through strategic alliances
AS
TAS
2
0.20
4
0.04
-
0.11
0.09
4
3
0.44
0.27
2
2
0.22
0.18
0.11
0.07
0.08
1
3
2
0.11
0.21
0.16
2
2
4
0.22
0.14
0.32
0.03
-
-
-
-
0.04
0.05
1.00
4
-
0.16
1.77
3
-
0.12
1.44
QSPM matrix. AMAZON.COM.
International strategy
Key External Factors
Opportunities
Continuous increase of internet users–502.5 mill by 2003
Increasing business-to-consumer e-commerce
US Internet economy projections $1.3 trillion by 2002
European online projections 3.1 trillion by 2004
Some Brick & Mortar companies lack online technology expertise Hispanics fastest growing population
Threats
People use Amazon to find information, but don’t buy
Seasonality of internet usage & revenue generation
Economic downturn or recession imminent
Low consumer confidence levels
Competition
Security/Privacy of information concerns
Internet taxation
Market valuation concerns
SUBTOTAL
SUM TOTAL