Global Strategy

In this session, we will discuss key concepts from the assigned reading, “Competing Globally,” to understand how firms can create and capture value in the international marketplace. This content page provides a structured overview of the core ideas we will explore.

Core Concepts from “Competing Globally”

We will follow a linear sequence of higher-level ideas from the reading to build a comprehensive understanding of global strategy:

  1. Global Value Creation: Understanding how to widen the wedge between customer willingness-to-pay and supplier opportunity cost by making strategic location choices for various activities in the value chain.
  2. Scope Decisions: Identifying opportunities for global value creation within a firm’s existing value chain. This involves a thorough evaluation of different sourcing strategies, including:
    • Outsourcing
    • Offshoring
    • Offshore Outsourcing
    • Reshoring
  3. Location Choice: Determining the most suitable geographic locations for organizational activities. This decision-making process will consider several critical factors:
    • Location Characteristics
    • Government Policies
    • Firm Fit
    • Competitive Effect
  4. Mode of Entry: Once a target location is identified, deciding on the most effective way to enter that market. We will explore various entry modes:
    • Exporting
    • Franchising
    • Alliances
    • Joint Ventures
    • Acquisitions
    • Greenfield Investments
  5. Time of Entry: After deciding on the location and mode of entry, the next crucial question is the timing of market entry. Several considerations drive this decision:
    • Location Clock (market readiness and evolution)
    • Incentives Clock (availability of government or other incentives)
    • Firm Clock (organizational capabilities and strategic priorities)
    • Competitive Clock (actions and reactions of competitors)

Recall Activity: Global Strategy

This activity is designed to help you refresh your memory and solidify your understanding of the key strategic management concepts introduced in the reading “Competing Globally”.

Visit the activity page and complete the activity with your group.

Simple Application Activity: Chinese EV maker Approach to Global Strategy

In this activity, you will apply the concepts we discuss to a real-world business scenario. We will analyze video-based content that describes how Chinese electric vehicle (EV) manufacturers are formulating their global strategy and approaching entry into the US market. This will provide a practical context for understanding the challenges and opportunities of competing globally.

Visit the activity page and complete the activity with your group.