OPENING CASE: The Evolving Strategy of Coca-Cola
STRATEGY AND THE FIRM
Value Creation Strategic Positioning Operations: The Firm as a Value Chain Organization: The Implementation of Strategy In Sum: Strategic Fit GLOBAL EXPANSION, PROFITABILITY, AND PROFIT GROWTH Expanding the Market: Leveraging Products and Competencies Location Economies Experience Effects Leveraging Subsidiary Skills Summary
COST PRESSURES AND PRESSURES FOR LOCAL RESPONSIVENESS
Pressures for Cost Reductions Pressures for Local Responsiveness CHOOSING A STRATEGY
Global Standardization Strategy Management Focus: Vodafone in Japan Localization Strategy Transnational Strategy International Strategy The Evolution of Strategy Management Focus: Evolution of Strategy at Procter & Gamble
The Advantages of Strategic Alliances Management Focus: Cisco and Fujitsu The Disadvantages of Strategic Alliances Making Alliances Work SUMMARY
CRITICAL THINKING AND DISCUSSION QUESTIONS
CLOSING CASE: IKEA – The Global Retailer
1. Explain the concept of strategy.
2. Understand how firms can profit by expanding globally.
3. Understand how pressures for cost reductions and pressures for local responsiveness influence strategic choice.
4. Be familiar with different strategies for competing globally and their pros and cons.
5. Explain the pros and cons of using strategic alliances to support global strategies.
This chapter focuses on the strategies that firms use to compete in foreign markets. At the outset, the chapter reviews the reasons that firms engage in international commerce, which range from earning a greater return from