Студопедия

Главная страница Случайная страница

КАТЕГОРИИ:

АвтомобилиАстрономияБиологияГеографияДом и садДругие языкиДругоеИнформатикаИсторияКультураЛитератураЛогикаМатематикаМедицинаМеталлургияМеханикаОбразованиеОхрана трудаПедагогикаПолитикаПравоПсихологияРелигияРиторикаСоциологияСпортСтроительствоТехнологияТуризмФизикаФилософияФинансыХимияЧерчениеЭкологияЭкономикаЭлектроника






Competing internationally






 

These basic principles of competitive strategy apply whether a firm is competing domestically or internationally. To understand the role of the nation in competitive advantage, however, we are particularly concerned with industries in which competition is international. We must understand how firms create competitive advantage through international strategy, and how this reinforces competitive advantages gained at home.

The pattern of international competition differs markedly from industry to industry. At one end of the spectrum, international competition takes a form that can be termed multidomestic. Competition in each nation (or small group of nations) is essentially independent. The industry is present in many nations (there is a consumer banking industry in Korea, one in Italy, and one in the United States, for example), but competition takes place on a country-by-country basis. A bank's reputation, customer base, and physical assets in one nation, for example, have little or no impact on its success in consumer banking in other nations. Some competitors may be multinational firms, but their competitive advantages are largely confined to each country in which they compete. The international industry is a collection of essentially domestic industries, hence the term multidomestic. Industries in which competition has traditionally taken this form include many types of retailing, many consumer food products, wholesaling, life insurance, consumer finance, simple metal fabrication, and caustic chemicals.

At the other end of the spectrum are global industries, in which a firm's competitive position in one nation significantly affects (and is affected by) its position in other nations. Rivals compete against each other on a truly worldwide basis, drawing on competitive advantages that grow out of their entire network of worldwide activities.18 Firms combine advantages created at their home base with others that result from a presence in many nations, such as economies of scale, the ability to serve multinational customers, and a transferable brand reputation. Global competition occurs in such industries as commercial aircraft, television sets, semiconductors, copiers, automobiles, and watches. Industries have increasingly become global in the post-World War II period.

In the extreme case of a multidomestic industry, there is no issue of national advantage or international competitiveness. Virtually every nation will have such industries. Many, if not most, of the firms that compete in

 


them will tend to be owned locally, because country-by-country competition makes it difficult for foreign firms to gain a competitive advantage. International trade in such industries will be modest or nonexistent. Foreign ownership, to the extent that it does occur, will tend to be largely passive and involve only modest control from central headquarters. Local jobs, local corporate citizenship, and the location of research will not be major issues, because the national subsidiary will control most if not all of the important activities necessary to compete. There are few debates about trade problems in industries such as retailing and metal fabrication.

Global industries, in contrast, are the battleground on which firms from different nations compete in ways that significantly affect national economic prosperity. The ability to achieve competitive advantage in global industries carries high stakes for both international trade and investment.

In global industries, firms are compelled to compete internationally in order to achieve or sustain competitive advantage in the most important industry segments. There may well be segments in such industries that are domestic because of unique national needs, in which purely domestic firms can prosper. But choosing a domestic focus in a global industry is perilous, no matter what the firm's home nation.

 


Поделиться с друзьями:

mylektsii.su - Мои Лекции - 2015-2024 год. (0.008 сек.)Все материалы представленные на сайте исключительно с целью ознакомления читателями и не преследуют коммерческих целей или нарушение авторских прав Пожаловаться на материал