MJF7 Strategy concepts overview (3): Competitive and collaborative strategies

1-1. Competitive strategies Business level Cost leadership Differentiation Focused cost leadership Focused differentiation Integrated cost/differentiation

1-2. Competitive strategies Corporate level Diversification strategy –Product diversification »Degree of diversification »Level of relatedness –Geographical diversification »Global strategy Vertical integration strategy –Internal growth or M&A

2. Collaborative strategies Strategic alliances Non-equity alliance (contract base) Equity alliance Joint venture Franchising, management contract, licensing, etc.

3. Organizational arrangement in global strategy Cultural difference –Individualism, power distance, masculinity, and uncertain avoidance Headquarters-subsidiaries relationship –Discussion: What is the best way to organize multinational corporations?

3. Organizational arrangement in global strategy Headquarters-subsidiaries relationship (continued) –International –Multinational (= multidomestic) –Global –Transnational

4. Global corporate environment toward the next millennium 4-1: What happened in the current millennium? –Accelerated cross-border movement of capital and manufacturing activities (the pivotal roles of global financial capital markets and MNCs) – Severe competition between trade regions (blocs) and between countries – The transformation of industry from Fordism to Post-Fordism – Liberalization, diversification and decentralization of economic activities in both developed and developing countries – Rapid advancement of communication technologies –

4. Global corporate environment toward the next millennium 4-2: What is likely to happen in the next millennium? –