Mr Essay

3829 WordsApr 25, 200916 Pages
Competing in Foreign Markets Chapter Summary Chapter Five focuses on a company’s strategy options for expanding beyond its domestic boun¬dary and competing in the markets of either a few or a great many countries. The chapter spotlight will be on four strategic issues unique to competing internationally. It will introduce a num¬ber of core concepts including multicountry competition, global competition, profit sanctu¬aries, and cross-market subsidization. Chapter Five is structured around sections on the special features of doing business in foreign markets, the different strategies for entering and competing in foreign markets, the growing role of alliances with foreign partners, the importance of locating operations in the most advantageous countries, and the special circumstances of competing in such emerging country markets as China, India, and Brazil. Lecture Outline I. Why Companies Expand Into Foreign Markets 1. Companies opt to expand outside their domestic market for any of four major reasons: a. To gain access to new customers b. To achieve lower costs and enhance the firm’s competitiveness c. To capitalize on its core competencies d. To spread its business risk across a wider market base A. The Difference between Competing Internationally and Competing Globally 1. Typically, a company will start to compete internationally by entering just one or maybe a select few foreign markets. 2. International competitor: operates in a select few foreign countries. 3. Global competitor: markets products in 50 to 100 countries and is expanding operations into additional country markets annually. II. Cross-Country Differences In Cultural, Demographic, and Market Conditions 1. The strategies an organization uses to compete in foreign markets have to be situation driven. 2. Cultural, demographic, and market conditions vary significantly among the

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