1. Chapter 14 (Hill) & Chapter 11 (Daniels)
Entry Strategy and Strategic Alliances

2. Different Strategies for Operating International Market
Global
View the world as a single market. Tightly controls global operation from headquarter to preserve focus on standardization
Transnational
Prefers a flexible value chain to facilitate local demand. Adopts complex coordination mechanism to facilitate global integration
Pressure for Global Integration
High
International
Uses existing core competencies to exploit opportunities in foreign markets
Multidomestic
Relies on foreign subsidiaries operating as autonomous units to customize products and processes for local market
Low
High
Low
Pressure for National Responsiveness

3. International Strategy
R&D or branding being developed centrally
Try to create value by transferring core competencies and unique product where rivals are unable to develop, match and sustain
Does not push local responsiveness
Limitation:
Central role of headquarter often hinder identifying and responding local condition
This become costly when the local company emphasize customization based on local demand

4. Multidomestic Strategy
Meet need of individual country and region basis
Respond to local culture, legal policy and economic environment
Can add value if local government give incentive for local plant
Local company can build sales force if there is unfavorable environment
Managers follow polycentric view
Limitation:
Can lead to duplication of management, design, production and marketing
Subsidiary is a virtual stand-alone operation, so headquarter must resort persuasion for any change

5. Global Strategy
Create product or service for a world market, manufacture them on a global scale in a few highly efficient plants, and market them with few focused distribution channel
Aim to become low cost player in the market
Place R&D, production and marketing in most favorable location
Firms that follow global strategy face strong pressure for cost reduction but weak pressure for local responsiveness
Large operation helps to give standard product in a low price

6. Transnational Strategy
Exploit location economies, leverage core competencies and pay attention to local responsiveness
Differentiate capability and contributions from country to country
Learn various knowledge (operation, finance, technology, creative idea), integrate and defuse them in global operation
Combine the market sensitivity of local responsiveness with the competitive efficiency of global integration
Limitation:
Difficult to build and prone to shortfall