n Define the International Strategies n Distinguish the

大綱 n Define the International Strategies n Distinguish the Possible Motivations for FDI and MNC n Describe the Diamond Model n International Corporate level Strategy n Discussions

Definition of International Strategy n. A strategy through which the firm sells its goods or services outside its domestic market – 如何執行活動？是否涉及生產行為？ • 找國外代理商、授權製造、特許加盟、設分公司（ 獨資或是合資） – International markets yield potential new opportunities – A possible way for extending a product’s life cycle – A opportunity for developing the globally branded product

International Opportunities(1) n Increased Market Size – Extending the Product life cycle – Access the large potential market – Lower the risk for R&D investment – Lower the risk for Marketing investment – Similar demand derived from industrialization – 規模愈大，除了可降低成本的意涵外，還代 表可執行差異化的能耐與資源 • Whirlpool in India • The Importance of China Market • Example of Coca-Cola and Pepsi

International Opportunities (2) n Return on Investment – Large market is crucial for earning a return on investment ( R&D intensive industries or Marketing intensive industries) – Increasing the development pace for new technology (Auto industry) – Recoup the new-product development cost by internationalization (Computer Hardware) – Generate the above-average returns on investment (Mc. Donald, KFC)

International Opportunities (3) n Economies of Scale and Learning – Technology Driving forces for lower cost – Product standardization & Similar product facilities – Large size is positively related with slack resource – Exploit the core competencies through resource and knowledge sharing – Pursuit synergy – Provide new learning opportunity

International Opportunities (4) n Advantage in Location – Lower the basic costs of the goods or service they provide – Access to lower-cost labor, energy or other natural resources – Access to critical suppliers and customers – 地點優勢不只是來自於具有低成本的勞 或 生產，還可能因為靠近市場、具有整合資源 效益、具有附加價值… • Example of Hong Kong, Hungary, New York… • 台灣電子廠商的海外佈局 • 在台外商

進入模式的選擇（Entry Mode） n 出口（Exporting） – 化妝品 n 授權（Licensing） – 軟性飲料製造業、日用品業 n 特許權（Franchising） – Mc. Donald、KFC（混合直接投資） n 合資（Joint Venture） – 新光三越、SOGO、星巴客 n 直接投資（Wholly Owned Subsidiary） – 自己設立，或是購併 – Honda in Taiwan, British American Tobacco in Korea, Channel, LV…等精品

International Business Level Strategy: Diamond Model n Factor of Production – Necessary inputs to compete in any industry n Demand Conditions – Nature and size of a market segment in the home market n Related and Supporting Industries – Contributors to the success of an industry n Firm Strategy, Structure, and Rivalry

Determinants of National Advantage Factors of Production Firm Strategy, Structure, and Rivalry Demand Conditions Related and Supporting Industries

Implications for Diamond Model n Importance for Home Country Market – The home country of operation is often the most important source of competitive advantage n Forming a Competitive Population n Government Role – Challengers, Catalyst

International Corporate Level Strategy High Need For Global Integration Global Strategy Transnational Strategy Multi-domestic Strategy Need for Local Responsiveness High

International Corporate Level Strategy (1) n Multi-domestic strategy（多地區策略） – Higher degree of local responsiveness and Lower degree of global integration – Strategic and operating decisions are decentralized to the business unit in each country – Pursuit Customization in each country – Increasing the potential local market share – Increasing the operating uncertainty – 顧問業、MTV台、速食連鎖業

International Corporate Level Strategy (2) n Global Strategy（全球策略） – Lower degree of local responsiveness and Higher degree of global integration – Offer standardized products across countries – Emphasize economies of scale – Offer greater opportunities to utilize innovations – Forgo growth opportunities in local – 電腦硬體業、化妝品業、精品業、高價手錶

International Corporate Level Strategy (3) n Transnational Strategy（跨國策略） – Higher degree of local responsiveness and Higher degree of global integration – Achieve both global efficiency and local responsiveness – Flexible coordination – Possible conflicting goals in each country • 日用品（P＆G、Unilever（由多地區策略轉為跨國 策略）） • 汽車業（GM, Chrysler, Toyota…） • 電信業、航空業、低價手錶

Discussions n 如何由價值鏈活動， 思考全球佈局 – 配置性、協調性 n 世界經濟板塊的區分 n Liability of Foreignness – Focus less on truly global markets, and more on regional adaptation – Importance of local adaptation n Regionalization – Location choice for implementing – Choose similar location or not

Discussions: Semi-Globalization（ 準全球化） n The regional economic integration is a trend n The MNC’s global expansion varies according to its distance framework – Cultural distance – Administrative distance – Geographic distance – Economic distance – Distance does matter, and it is possible the explanation for regional economic integration