discussion

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global_business_strategy_-_business_model.pptx

Global Business Strategy

Overview

Global Business Strategy as a Business Model, with choices

Questions

For your sector, what is the value proposition of IE firms?

Differentiated Offer - Value discipline – operational excellence, customer intimacy, OR product leadership

CAGE-ground of that differentiator

What is the market participation strategy of IE firms?

Target regions and customers

Channels for trade and promotion

What is the value infrastructure strategy of IE firms?

Local activities (capabilities) of the firm and its suppliers and partners

Global value chain of the firm and its suppliers and partners

What is the management/ organizational design of IE firms?

Organizational model

Mindset model

Global Business Strategy, as Business model change

Whether and how to adapt the business model, as a firm goes global?

Some elements may be adapted

Others may be aggregated

Still others may be arbitraged through trade and investments

Case study

Microsoft in China

Old mindset: Sought aggregation strategy, inducing legal actions and fall out with government & popular media

New mindset: Open windows code for add-ons, open research center, lowered prices, help China develop its software eco-system e.g. which firms to invest into; gradual legalization

Question: What elements of the value discipline will “travel”?

Case Study: Dell in Asia

Direct selling  partnerships with retail chains

Functional low cost  form – personalization and colors

Asia for low-end manufacturing  Asia for high-end product designing