discussion
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