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1. INTERNATIONAL
STRATEGY

2. Internatiomal Strategy main
objectives
• Explain incentives
• Identify three basic
benefits
• Explore
thedeterminants of
national advantage
• Describe the three
international
corporate-level
strategies

3. Internatiomal Strategy main
objectives
• Discuss environmental
trends
• Identify and explain five
modes firms
• Discuss the two major
risks

4. IDENTIFYING
INTERNATIONAL
OPPORTUNITIES

5. is a strategy through which the firm sells
it's goods or services outside it's domestic
market.
International Strategy

6. expressed the classic
rationale for international
strategy.
Raymond Vernon

7. INCENTIVES OF INTERNATIONAL
STRATEGY
• Extend a product's life
cycle
• Gain easier access to
raw materials
• Opportunities to better
use rapidly developing
technologies
• Opportunities to
integrate operations
on a global scale
• Gain access to
consumers in
emerging markets

8. BASIC BENEFITS
Increased mareket size
• Economies of scale and
learning
• Location advantages

9. firms can expand the size of their potential
market - sometimes dramatically - by using an
international strategy to establish stronger
position in market outside their domesticmarket.
Three Basic Benefits of International Strategy
1.Increased Market Size

10. By expanding the number of markets in which
they compare, firms may be able to enjoy
economies of scale, particularly in manufacturing
operations.
Three Basic Benefits of International Strategy
2. Increased Economies Scale and Learning

11. location facilities outside their domestic market
can sometimes help firms reduce costs. This
benefits can provide easier access to lower cost
labor, energy, and other natural resources.
Three Basic Benefits of International Strategy
3. Development of a competitive advantage
through location

12. firms choose to use one or both basic types
international strategy:
• BUSINESS-LEVEL INTERNATIONAL
STRATEGY
• CORPORATE-LEVEL INTERNATIONAL
STRATEGY
International Strategies

13. Firms considering the use of any
international strategy first develop
domestic-market strategies - at the
business level and the corporate level if the
firm has diversified at the product level.
INTERNATIONAL BUSINESS-LEVEL
STRATEGY

14. focuses on the scope of a firm’s operations
through geographic diversification;
required when the firms operates in
multiple industries that are located in
multiple countries or region.
INTERNATIONAL CORPORATE-LEVEL
STRATEGY

15. is an international strategy in which
strategic and operating decisions are
decentralized to the strategic business
units in individual countries or regions for
allowing each unit the opportunity to tailor
products to the local market.
MULTIDOMESTIC STRATEGY

17. is an international strategy in which a
firm’s home office determines the
strategies that business units are to use in
each country or region.
GLOBAL STRATEGY

18. is an international strategy through which
the firms seeks to achieve both global
efficiency and local responsiveness.
TRANSNATIONAL STRATEGY

19. This strategy integrates global
coordination (to capitalize on economies of
scale, standardization, and cost efficiency)
with the ability to adapt products or
services to meet the unique needs of
individual markets.
TRANSNATIONAL STRATEGY

20. although the transnational
is difficult to implement, an
emphasis on global
effiiceincy is increasing as
more industries, and the
companies competing
within them, encounter
intensified global
ENVIRONMENTAL
TRENDS

21. LIABILITY OF
FOREIGNESS
refers to the disadvantages that
companies face when they
operate in a foreign market
compared to local firms. These
disadvantages stem from the
additional costs, risks, and
challenges associated with
entering and competing in

22. Is a second global environmental trend
influencing a firm’s choice and use of
international strategies.
REGIONALIZATION

23. MODES OF ENTRY AND
THEIR
CHARACTERISCTICS

24. is an entry mode through which the firm
sends productss it produces in its domestic
market to international markets.
EXPORTING

25. is an entry mode in which an agreement is
formed that allows a foreigner company to
purchase the right to manufacture and sell
a firm’s products within a host country’s
market.
LICENSING

26. invloves a firm collaborating with another
company in a different setting in order one
or more international market.
STRATEGIC ALLIANCE

27. is an entry mode through which a firm
from one country acquires a stake in or
purchase all of a firm located in another
country.
ACQUISITION

28. is an entry mode through which a firm
invests directly in another country or
market by establishing a new wholly owned
subsidiary.
NEW WHOLLY OWNED SUBSIDIARY

29. refers to the flexible and evolving approach
that companies use when choosing how to
enter and operate in foreign markets.
Instead of sticking to a single entry
strategy, companies may change or adapt
their entry mode over time based on
factors like market conditions, competitive
environment, or strategic objectives.
DYNAMICS OF ENTRY MODE

30. international strategies are risky,
particular those that would cause a firm to
become substantially more diversified in
terms of geographic market served.
RISKS in an INTERNATIONAL
ENVIRONMENT

31. denote the probability of disruption of the
operations of multinational enterprises by
political forces or events whether they
occur in host countries, home country or
result from changes in the international
environment.
POLITICAL RISK

32. include fundamental weakness in a eco
country or region’s economy with the
potential to cause adverse effects on firms’
efforts to succesfully implement their
international strategies.
ECONOMIC RISKS

33. the degree to which firms achieve strategic
competetiveness through international
strategies is expanded or increased when
they successfully implement an
international diversification strategy.
STRATEGIC COMPETITIVENESS
OUTCOMES

34. is a strategy through which a firm expands
the sales of its goods or services across
borders of global regions and countries into
a potentially large number of geographic
locations or markets.
INTERNATIONAL DIVERSIFICATION
STRATEGY

35. international diversification should be
related positively to a firm’s performance
as measured by the returns in earns on its
investments.
INTERNATIONAL DIVERSIFICATION AND
RETURNS

36. we dedicated that developing new
technology is at the heart of strategic
competitiveness. As noted in our discussion
of the determinants of national advantage
competitiveness depends, in part, on the
capacity of its industries to innovate.
ENHANCED INNOVATION

37. effectively using internationl strategies
creates basic benefits and contribute to the
firm’s strategic competitivenes. However,
for several reasons, attaining these positive
outcomes is difficult.
THE CHALLENGE OF INTERNATIONAL
STRATEGIES

38. Managing international strategies can be
highly complex due to the diverse and
interconnected nature of global markets.
Companies face various challenges that
require balancing multiple factors such as
cultural differences, legal environments,
global competition, and operational
efficiencies.
COMPLEXITY OF MANAGING
INTERNATIONAL STRATEGIES

39. learning how to effectively manage an
international strategy improves the
likelihood of achieving positive outcomes
such as enhaced performance.
LIMITS TO INTERNATIONAL EXPANSION