Essay About Labor Market And Sales Data

Strategic Management Exam Practice
Lecture 3 (13/1)GlobalizationThe World is becoming more connected – labor market, product marketFirms compete in global marketValue-chainOutsource different parts of production (primary activities / supporting activities) to other regions – easy communication across the globee.g. Apple has a sustainable competitive advantage→ not depends solely on single product, but a chain of products and innovationGenerating strategies for Toyota:Identify the competitors of Toyota (competitive rivalry)e.g. FORD, GM, HONDA-look at sales data, multimarket contact, elasticity of sales, whether it affects each other’s or not-Based on strategic group (narrower)Going out into the world:Access to new marketAccess to new factor market e.g. labor market, capital market, market for raw materials, market for management / entrepreneurial resources*Developing international strategy is pretty much about deciding (i) where to go, (ii) how to go, (iii) how to proceedWHERE TO GODiamond model – determines where to go, location decision of companyGoal: market seeking internationalization? Resource seeking internalization?*What is the reason of going abroad?? Look for cheaper production cost?? Higher demand??Factor condition→ raw materials, production costs e.g. developing chips→ look for places with corn field (natural resources)Related and Supported Industries→ e.g. well educated / professional manpower, the software services in the Netherland is not well-developedDemand ConditionFirm Strategy, Structure and Rivalry→ how competitors lead the industry, learn from competitorsIndependent reports – determines where to goFactual data, e.g. FDI (foreign direct investment) confidence index, Global services location index, country attractiveness reportHOW TO GOWeighing alternative: International entry strategies – Exporting→ e.g. sell cheese to India, test the market’s responses, trial→ no refrigerators / electricity (external factors) in India, cheese melt-Direct-Indirect: sell products to middlemen who will sell cheese to IndiaContracts-Franchising: most applicable to fast food industry, franchiser maintains a considerable degree of control over the operations and processes used by the franchisee, franchiser helps with things like branding and marketing supporte.g. McDonalds, Subway, 7-11, Dunkin Donuts-Licensing: individual, keep the brand image consistent, licensing company may exercise control over how its intellectual property is used but does not control the business operations of the licensee