MJF7Strategy 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 environmenttoward the next millennium

4-1: What happened in the current millennium?– Accelerated cross-border movement of capital and manufacturing activitie

s (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

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4. Global corporate environmenttoward the next millennium

4-2: What is likely to happen in the next millennium?

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