国际商务International Business (Charles W.L. Hill 第七版)Chap012 The Strategy of International BusinessChapter 12 The Strategy of International Business12-3Introduction vWhat actions can managers take to compete more effectively as an international business?vHow can firms increase profits through international expansion?vWhat international strategy should firms pursue?12-4Strategy And The FirmvA firms strategy refers to the actions that managers take to attain the goals of the firmvProfitability can be defined as the rate of return the firm makes on its invested capitalvProfit growth is the percentage increase in net profits over timevExpanding internationally can boost profitability and profit growth 12-5Strategy And The FirmFigure 12.1: Determinants of Enterprise Value12-6Value CreationvThe value created by a firm is measured by the difference between V (the price that the firm can charge for that product given competitive pressures) and C (the costs of producing that product)vThe higher the value customers place on a firms products, the higher the price the firm can charge for those products, and the greater the profitability of the firm12-7Value CreationFigure 12.2: Value Creation 12-8Classroom Performance SystemWhat is the rate of return the firm makes on its invested capital?a) Profit growthb) Profitabilityc) Net returnd) Value created 12-9Value CreationProfits can be increased by: vadding value to a product so that customers are willing to pay more for it a differentiation strategyvlowering costs a low cost strategyvMichael Porter argues that superior profitability goes to firms that create superior value by lowering the cost structure of the business and/or differentiating the product so that a premium price can be charged 12-10Strategic PositioningvMichael Porter argues that firms need to choose either differentiation or low cost, and then configure internal operations to support the choiceTo maximize long run return on invested capital, firms must:vpick a viable position on the efficiency frontier vconfigure internal operations to support that positionvhave the right organization structure in place to execute the strategy12-11Strategic PositioningFigure 12.3: Strategic Choice in the International Hotel Industry12-12Operations: The Firm As A Value ChainvA firms operations can be thought of a value chain composed of a series of distinct value creation activities, including production, marketing, materials management, R&D, human resources, information systems, and the firm infrastructurevValue creation activities can be categorized as primary activities (R&D, production, marketing and sales, customer service) and support activities (information systems, logistics, human resources)12-13Classroom Performance SystemWhich of the following is not an example of a primary activity? a) Logistics b) Marketing and sales c) Customer service d) Production12-14Operations: The Firm As A Value ChainFigure 12.4: The Value Chain12-15Global Expansion, Profitability, And Profit GrowthInternational firms can:vexpand the market for their domestic product offerings by selling those products in international marketsvrealize location economies by dispersing individual value creation activities to locations around the globe where they can be performed most efficiently and effectivelyvrealize greater cost economies from experience effects by serving an expanded global market from a central location, thereby reducing the costs of value creationvearn a greater return by leveraging any valuable skills developed in foreign operations and transferring them to other entities within the firms global network of operations12-16Expanding The Market: Leveraging Products And CompetenciesvFirms can increase growth by selling goods or services developed at home internationallyvThe success of firms that expand internationally depends on the goods or services they sell, and on their core competencies (skills within the firm that competitors cannot easily match or imitate)vCore competencies enable the firm to reduce the costs of value creation and/or to create perceived value in such a way that premium pricing is possible12-17Location EconomiesvWhen firms base each value creation activity at that location where economic, political, and cultural conditions, including relative factor costs, are most conducive to the performance of that activity, they realize location economies (the economies that arise from performing a value creation activity in the optimal location for that activity, wherever in the world that might be) vBy achieving location economies, firms can:vlower the costs of value creation and achieve a low cost positionvdifferentiate their product offering 12-18Location EconomiesvFirms that take advantage of location economies in different parts of the world, create a global web of value creation activitiesvUnder this strategy, different stages of the value chain are dispersed to those locations around the globe where perceived value is maximized or where the costs of value creation are minimizedA caveat: vtransportation costs, trade barriers, and political risks complicate this picture12-19Classroom Performance SystemWhat is created when different stages of a value chain are dispersed to locations where value added is maximized or where the costs of value creation are minimized? a) Experience effects b) Learning effects c) Economies of scale d) A global web12-20Experience EffectsvThe experience curve refers to the systematic reductions in production costs that have been observed to occur over the life of a productvLearning effects are cost savings that come from learning by doingvSo, when labor productivity increases, individuals learn the most efficient ways to perform particular tasks, and management learns how to manage the new operation more efficiently 12-21Experience EffectsFigure 12.5: The Experience Curve12-22Experience EffectsvEconomies of scale refer to the reductions in unit cost achieved by producing a large volume of a productSources of economies of scale include:vspreading fixed costs over a large volumevutilizing production facilities more intensivelyvincreasing bargaining power with suppliers vBy moving down the experience curve, firms reduce the cost of creating valuevTo get down the experience curve quickly, firms can use a single plant to serve global markets12-23Leveraging Subsidiary SkillsIt is important for managers to:vrecognize that valuable skills that could be applied elsewhere in the firm can arise anywhere within the firms global network (not just at the corporate center)vestablish an incentive system that encourages local employees to acquire new skillsvhave a process for identifying when valuable new skills have been created in a subsidiary 12-24SummaryvManagers need to keep in mind the complex relationship between profitability and profit growth when making strategic decisions about pricingvIn some cases, it may be worthwhile to price products low relative to their perceived value in order to gain market share 12-25Cost Pressures And Pressures For Local ResponsivenessFirms that compete in the global marketplace typically face two types of competitive pressures:vpressures for cost reductionsvpressures to be locally responsivevThese pressures place conflicting demands on the firmvPressures for cost reductions force the firm to lower unit costs, but pressure for local responsiveness require the firm to adapt its product to meet local demands in each marketa strategy that raises costs 12-26Cost Pressures And Pressures For Local ResponsivenessFigure 12.6: Pressures for Cost Reductions and Local Responsiveness12-27Pressures For Cost ReductionsPressures for cost reductions are greatest:vin industries producing commodity type products that fill universal needs (needs that exist when the tastes and preferences of consumers in different nations are similar if not identical) where price is the main competitive weaponvwhen major competitors are based in low cost locationsvwhere there is persistent excess capacityvwhere consumers are powerful and face low switching costs12-28Pressures For Local ResponsivenessPressures for local responsiveness arise from:vdifferences in consumer tastes and preferences - strong pressures for local responsiveness emerge when consumer tastes and preferences differ significantly between countriesvdifferences in traditional practices and infrastructure - pressures for local responsiveness emerge when there are differences in infrastructure and/or traditional practices between countries 12-29Pressures For Local Responsivenessvdifferences in distribution channels - a firms marketing strategies needs to be responsive to differences in distribution channels between countriesvhost government demands - economic and political demands imposed by host country governments may necessitate a degree of local responsiveness12-30Classroom Performance SystemWhich of the following is not a pressure for local responsiveness? a) Excess capacity b) Host government demands c) Differences in consumer tastes and preferences d) Differences in distribution channels12-31Choosing A StrategyThere are four basic strategies to compete in the international environment: vglobal standardizationvlocalizationvtransnationalvInternationalvThe appropriateness of each strategy depends on the pressures for cost reduction and local responsivness in the industry 12-32Choosing A StrategyFigure 12.7: Four Basic Strategies12-33Global Standardization StrategyvThe global standardization strategy focuses on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economiesvThe strategic goal is to pursue a low-cost strategy on a global scaleThe global standardization strategy makes sense when:vthere are strong pressures for cost reductionsvdemands for local responsiveness are minimal12-34Localization StrategyvThe localization strategy focuses on increasing profitability by customizing the firms goods or services so that they provide a good match to tastes and preferences in different national marketsThe localization strategy makes sense when:vthere are substantial differences across nations with regard to consumer tastes and preferencesvwhere cost pressures are not too intense12-35Transnational StrategyThe transnational strategy tries to simultaneously:vachieve low costs through location economies, economies of scale, and learning effectsvdifferentiate the product offering across geographic markets to account for local differencesvfoster a multidirectional flow of skills between different subsidiaries in the firms global network of operationsThe transnational strategy makes sense when:vcost pressures are intensevpressures for local responsiveness are intense 12-36International StrategyvThe international strategy involves taking products first produced for the domestic market and then selling them internationally with only minimal local customization The international strategy makes sense whenvthere are low cost pressuresvlow pressures for local responsiveness12-37Classroom Performance SystemWhich strategy tries to simultaneously achieve low costs through location economies, economies of scale, and learning effects, and differentiate the product offering across geographic markets to account for local differences?a) Internationalizationb) Localizationc) Global standardizationd) Transnational12-38The Evolution of StrategyvAn international strategy may not be viable in the long termvTo survive, firms may need to shift to a global standardization strategy or a transnational strategy in advance of competitorsvSimilarly, localization may give a firm a competitive edge, but if the firm is simultaneously facing aggressive competitors, the company will also have to reduce its cost structures, and the only way to do that may be to shift toward a transnational strategy12-39The Evolution of StrategyFigure 12.8: Changes in Strategy over Time 12-40Classroom Performance SystemWhich strategy makes sense when pressures are high for local responsiveness, but low for cost reductions? a) Global standardization strategy b) International strategy c) Transnational strategy d) Localization strategy