IBUS2301 - Tutorial #9 - Chapter 12 - international Business Strategy

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This tutorial covers the basics of international business strategy. We first discuss the case of Billabong's recent problems, problems shared by many of its competitors such as Quiksilver and Rip Curl. We then think of Billabong's possible options moving forward in the context of international business theories. These include 1) long-term strategic goals, 2) value creation options, 3) basic business strategy (low-cost vs differentiation, 4) the value chain, 5) entry mode strategies, and 6) the four main international strategies. Finally, we conclude with a look at how some companies localize their offerings.

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IBUS2301 - Tutorial #9 - Chapter 12 - international Business Strategy

  1. 1. IBUS2301: International Business Management Tutorial #9, May 12 and 13 Chapter 12: International Business Strategy Tutor: Preston Teeter, p.teeter@business.uq.edu.au
  2. 2. IBUS2301: Int’l Business Mgmt Outline • Billabong’s international strategy • Four basic strategies
  3. 3. IBUS2301: Int’l Business Mgmt BILLABONG’S INTERNATIONAL STRATEGY
  4. 4. IBUS2301: Int’l Business Mgmt Billabong • 80% sales international • Brand’s collections are licensed and distributed in over 100 countries, 10,000 outlets • Majority of sales through wholly-owned operations in Australia, Europe, S. Africa, Brazil, N. America, New Zealand, and Japan • Began as wholesaler, later started opening own stores
  5. 5. Source: abc.net.au
  6. 6. Source: Google Finance
  7. 7. Source: smartcompany.com.au
  8. 8. IBUS2301: Int’l Business Mgmt Billabong Billabong’s board has invited two consulting groups to analyze their situation and present their recommendations on how Billabong should move forward with their international business strategy. • 8 minutes to prepare, 2 minutes to present
  9. 9. Source: Retailbiz.com.au
  10. 10. IBUS2301: Int’l Business Mgmt FOUR BASIC STRATEGIES
  11. 11. 5/13/2014 IBUS2301: Int’l Business Mgmt Strategy 1. What is strategy? •Actions that managers take to attain the goals of the firm 2. What are the determinants of enterprise value? 3. What are the two basic strategies for creating value and attaining competitive advantage?
  12. 12. Determinants of Enterprise Value
  13. 13. Strategic Choice in the International Hotel Industry
  14. 14. The Value Chain
  15. 15. 5/13/2014 IBUS2301: Int’l Business Mgmt Global Standardization • Global low-cost strategy • Ex. industrial goods International • Minimal customization and cost reductions • Ex. Xerox in 1960s Transnational • Low-cost & customization • Ex. Caterpillar (see text) Localization (Multidomestic) • Global customization • Ex. Automobiles (historically) Four Strategies
  16. 16. Four Basic Strategies
  17. 17. 5/13/2014 IBUS2301: Int’l Business Mgmt Local Responsiveness Where do pressures for local responsiveness arise from? • Differences in… • customer tastes and preferences • infrastructure • traditional practices • distribution channels • host-government demands
  18. 18. Source:Minyanville.com
  19. 19. Source:Minyanville.com +
  20. 20. Source: hipbip.com McDonald’s France
  21. 21. What is the top-selling car in each country? Ford F-Series Morris Mini Ford Falcon Volkswagen Golf
  22. 22. Questions?

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