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Overview of Competitive and Collaborative Strategies in Global Business

This overview discusses both competitive and collaborative strategies essential for contemporary businesses. Competitive strategies address business-level approaches such as cost leadership, differentiation, and focused strategies. At the corporate level, diversification strategies—including product and geographical diversification—are examined. Additionally, collaborative strategies like strategic alliances, joint ventures, and franchising are explored. The document also highlights organizational arrangements in global strategy, considering cultural differences and the dynamics between headquarters and subsidiaries, essential for effective multinational management.

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Overview of Competitive and Collaborative Strategies in Global Business

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  1. MJF7Strategy concepts overview (3):Competitive and collaborative strategies

  2. 1-1. Competitive strategies • Business level • Cost leadership • Differentiation • Focused cost leadership • Focused differentiation • Integrated cost/differentiation

  3. 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

  4. 2. Collaborative strategies • Strategic alliances • Non-equity alliance (contract base) • Equity alliance • Joint venture • Franchising, management contract, licensing, etc.

  5. 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?

  6. 3. Organizational arrangement in global strategy • Headquarters-subsidiaries relationship (continued) • International • Multinational (= multidomestic) • Global • Transnational

  7. 4. Global corporate environmenttoward the next millennium 4-1: What happened in the current millennium? • Accelerated cross-border movement of capital and manufacturing activities (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

  8. 4. Global corporate environmenttoward the next millennium 4-2: What is likely to happen in the next millennium?

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