Chapter 7

Conclusion

This chapter has explained strategies related to competition in international markets. When considering competing in foreign markets, executives must consider the benefits and risks when making decisions about whether to expand overseas. Executives would also benefit from considering their current (domestic) demand conditions, factor conditions, related and supporting industries, and strategy, structure, and rivalry, all of which can affect the probability of success in foreign markets. When a firm does venture overseas, a decision must be made about whether its international strategy will be multidomestic, global, or transnational. Finally, when leading a firm to enter a new market, executives can choose to manage the operation via exporting, creating a wholly owned subsidiary, franchising, licensing, or creating a joint venture or strategic alliance.

 

Exercises

  1. Divide your class into four or eight groups, depending on the size of the class. Each group should select a different industry. Find examples of each international strategy for your industry. Discuss which strategy seems to be the most successful in your selected industry.
  2. This chapter discussed Kia and other automakers. If you were assigned to turn around a struggling automaker such as General Motors or Chrysler, what actions would you take to revive the company’s prospects within the global auto industry?

 

Attributions

Figure 7.1:
Kia Venga interior by LSDSL (http://commons.wikimedia.org/wiki/File:Kia_Venga_interior.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 7.2:
 2011 Kia Sorento LX 2 — 02-13-2010 by IFCAR (http://commons.wikimedia.org/wiki/File:2011_Kia_Sorento_LX_2_–_02-13-2010.jpg) is in the Public Domain

Figure 7.3:
Desert road camel-other by photos8.com (http://commons.wikimedia.org/wiki/File:Desert_road_camel-other.jpg) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 7.4:
2nd Putrajaya International Hot Air Balloon Fiesta 2010 by Kevin Poh (http://www.flickr.com/photos/kevinpoh/4446228896) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 7.5:
State Farm Call Center by State Farm (https://www.flickr.com/photos/statefarm/8163895040/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 7.6:
ampm by MASA (http://commons.wikimedia.org/wiki/File:Ampm.JPG) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 7.7:
Marlboroultralights by Autodesigner (http://en.wikipedia.org/wiki/File:Marlboroultralights.JPG) used under CC-0 license (http://creativecommons.org/publicdomain/zero/1.0/deed.en)

Figure 7.8:
Risk by The Fayj (http://www.flickr.com/photos/fayjo/333325967/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 7.9:
Cuba.FidelCastro.02 by Hajor (http://commons.wikimedia.org/wiki/File:Cuba.FidelCastro.02.jpg) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 7.10:
Euro Debt Crisis – Black and White – Horizontal by EuroCrisisExplained .co.uk (https://www.flickr.com/photos/eurocrisisexplained/7811187020/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 7.11:
Known shoes soles by Zalman992 (http://commons.wikimedia.org/wiki/File:Known_shoes_soles.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (first); Bikini Open 121 by Bikini Open (https://www.flickr.com/photos/bikiniopen/3381831542/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (second); A-OK by Faceofwiki (http://commons.wikimedia.org/wiki/File:A-OK.JPG) used under CC-0 license (http://creativecommons.org/publicdomain/zero/1.0/deed.en) (third); Alarm Clocks 20101107a by Batholith (http://commons.wikimedia.org/wiki/File:Alarm_Clocks_20101107a.jpg) is in the Public Domain (fourth); Chocolate-chip-cookie-crumbs-on-plate by Knoell8504 (http://commons.wikimedia.org/wiki/File:Chocolate-chip-cookie-crumbs-on-plate.png) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (fifth); Woman eating an apple (1) by Bill Branson (http://commons.wikimedia.org/wiki/File:Woman_eating_an_apple_(1).jpg) is in the Public Domain (sixth); Stare by John O’Nolan (https://www.flickr.com/photos/johnonolan/5729506059/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (seventh)

Figure 7.12:
this is what my fridge looks like right now by Jonny Hunter (https://www.flickr.com/photos/jonnyhunter/3740897011/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 7.13:
Harry Potter by Joya Wu (http://www.flickr.com/photos/airencn/2770897336/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Stroller&baby,japan by katorisi (http://commons.wikimedia.org/wiki/File:Stroller%26baby,japan.JPG) used under CC-BY license (https://creativecommons.org/licenses/by/3.0/) (second); OL-SR90-2 by Don snooker (http://commons.wikimedia.org/wiki/File:OL-SR90-2.png) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (third); Chevrolet Nova SS by Bull-Doser (http://commons.wikimedia.org/wiki/File:Chevrolet_Nova_SS.jpg) is in the Public Domain (fourth)

Figure 7.14:
Diamond Paperweight 8-24-09 4 by Steven Depolo (https://www.flickr.com/photos/stevendepolo/3853300537/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 7.15:
Honda-Civic by Greudin (http://commons.wikimedia.org/wiki/File:Honda-Civic.jpg) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Renault Clio I Phase II Fünftürer RN by Thomas doerfer (http://commons.wikimedia.org/wiki/File:Renault_Clio_I_Phase_II_F%C3%BCnft%C3%BCrer_RN.JPG) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (second); BMW 420i GranCoupé M Sport (F36) front by Tokumeigakarinoaoshima (http://commons.wikimedia.org/wiki/File:BMW_420i_GranCoup%C3%A9_M_Sport_(F36)_front.JPG) used under CC-0 license (http://creativecommons.org/publicdomain/zero/1.0/deed.en) (third); Ferrari California1 by Kaotic.nite (http://commons.wikimedia.org/wiki/File:Ferrari_California1.jpg) used under CC-BY license (https://creativecommons.org/licenses/by/3.0/) (fourth); H1opentop by The Real Polymath (http://commons.wikimedia.org/wiki/File:H1opentop.jpg) is in the Public Domain (fifth)

Figure 7.16:
FEMA – 46187 – Japanese Delegations Visits FEMA Louisiana Recovery Office by Manny Broussard (http://commons.wikimedia.org/wiki/File:FEMA_-_46187_-_Japanese_Delegations_Visits_FEMA_Louisiana_Recovery_Office.jpg) is in the Public Domain

Figure 7.17:
Nuvola Russian flag by Min’s (http://commons.wikimedia.org/wiki/File:Nuvola_Russian_flag.svg) is in the Public Domain (first); Nuvola Indian flag by Min’s (http://commons.wikimedia.org/wiki/File:Nuvola_Indian_flag.svg) is in the Public Domain (second); Nuvola Canada flag by Min’s (http://commons.wikimedia.org/wiki/File:Nuvola_Canada_flag.svg) is in the Public Domain (third); Nuvola Danish flag by Min’s (http://commons.wikimedia.org/wiki/File:Nuvola_Danish_flag.svg) is in the Public Domain (fourth)

Figure 7.18:
Bois coupé dans le hangar by Dinkum (http://commons.wikimedia.org/wiki/File:Bois_coup%C3%A9_dans_le_hangar.JPG) used under CC-0 license (http://creativecommons.org/publicdomain/zero/1.0/deed.en)

Figure 7.19:
McCormick Tractor by Brian Forbes (http://commons.wikimedia.org/wiki/File:McCormick_Tractor.jpg) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Randall Cattle in Vermont by CTPhil (http://commons.wikimedia.org/wiki/File:Randall_Cattle_in_Vermont.jpg) is in the Public Domain (second); Wind turbine repairs by Rudolf Ammann (http://commons.wikimedia.org/wiki/File:Wnd_turbine_repairs.jpg) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (third); Oil Pump (8037088873) by Tony Higsett (http://commons.wikimedia.org/wiki/File:Oil_Pump_(8037088873).jpg) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fourth); 2Wire 2701 by True Tech Talk Time (http://commons.wikimedia.org/wiki/File:2Wire_2701.JPG) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (fifth); Blackberry 8900 ColorIsOff by LP-mn (http://commons.wikimedia.org/wiki/File:Blackberry_8900_ColorIsOff.jpg) is in the Public Domain (sixth); Koman90 uei graduation by Photography by carolyne porter (http://commons.wikimedia.org/wiki/File:Koman90_uei_graduation.JPG) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (seventh); Hotel Room (9638499309) by William Warby (http://commons.wikimedia.org/wiki/File:Hotel_Room_(9638499309).jpg) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (eighth); Hyundai car assembly line by Taneli Rajala (http://commons.wikimedia.org/wiki/File:Hyundai_car_assembly_line.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.5/deed.en) (ninth); Aeriel picture, Revelstoke Dam by Kelownian Pilot (http://commons.wikimedia.org/wiki/File:Aeriel_picture,_Revelstoke_Dam.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (tenth)

Figure 7.20:
Milan Montenapoleone 16 by Warburg (http://en.wikipedia.org/wiki/File:Milan_Montenapoleone_16.JPG) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 7.21:
Cuban Cigars by Alex Brown (https://www.flickr.com/photos/alexbrn/27976290/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Antique Persian Kerman Rug by Alen Erfanian (http://commons.wikimedia.org/wiki/File:Antique_Persian_Kerman_Rug.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/4.0/deed.en) (second); Meeresfruchte by Kirschblut (http://commons.wikimedia.org/wiki/File:Meeresfruchte.jpg) is in the Public Domain (third); Ceramic beer steins by Thomas Quine (https://www.flickr.com/photos/quinet/10097923705/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fourth); Sony-PlayStation-4-PS4-wDualShock-4 by Evan-Amos (http://commons.wikimedia.org/wiki/File:Sony-PlayStation-4-PS4-wDualShock-4.jpg) is in the Public Domain (fifth); Charlie Chapline by P.D Jankens (http://commons.wikimedia.org/wiki/File:Charlie_Chaplin.jpg) is in the Public Domain (sixth)

Figure 7.22:
Leicester Square Burger King by Chrisloader (http://en.wikipedia.org/wiki/File:Leicester_Square_Burger_King.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 7.23:
Tabasco by kenny_lex (http://www.flickr.com/photos/kenny_lex/3059058350/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Green Tea Kit-Kat (from Japan) by Andrew Maiman (http://www.flickr.com/photos/amaiman/5550834826/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (second); Butterfinger by Bodo (http://www.flickr.com/photos/64448029@N05/5901416357/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (third); Kit-Kat new by Ged Carroll (http://www.flickr.com/photos/renaissancechambara/4241378353/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fourth); Project 365 #138: 180509 Oooooh, cheeky! By Pete (http://www.flickr.com/photos/comedynose/3542592243/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fifth); CreativeTools.se – PackshotCreator – Heinz Chili Sauce by Creative Tools (http://www.flickr.com/photos/creative_tools/4293407348/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (sixth); HP Sauce – 2 by Windell Oskay (http://www.flickr.com/photos/oskay/4578993380/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (seventh)

Figure 7.24:
Curry Beanz by Gordon Joly (http://commons.wikimedia.org/wiki/File:Curry_Beanz.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 7.25:
WestJet Boeing 737-8CT | C-GWSZ / 812 | “Walt Disney Livery” | Flight WS2660 from YYZ to MBJ by Lord of the Wings© (https://www.flickr.com/photos/aseemsjohri/14513060711/) used under CC-BY-SA license (https://creativecommons.org/licenses/by-sa/2.0/) (first); Intel 486 DX by yellowcloud (https://www.flickr.com/photos/yellowcloud/4525292434/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (second); US Navy 050507-N-3289C-028 Gunners Mate 2nd Class Matthew Maple, from Pittsburgh, Pa., takes time out to stay physically fit by training on a stationary bike aboard the costal patrol ship USS Sirocco (PC 6) by Paul Cage (http://commons.wikimedia.org/wiki/File:US_Navy_050507-N-3289C-028_Gunners_Mate_2nd_Class_Matthew_Maple,_from_Pittsburgh,_Pa.,_takes_time_out_to_stay_physically_fit_by_training_on_a_stationary_bike_aboard_the_costal_patrol_ship_USS_Sirocco_(PC_6).jpg) is in the Public Domain (third); Miriam Ocariz – BOTELLA 200ML COCA-COLA LIGHT by The Brandery (http://www.flickr.com/photos/thebrandery/5375176557/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fourth); Devota&Lomba BOTELLA 200ML COCA-COLA LIGHT by The Brandery (http://www.flickr.com/photos/thebrandery/5375776224/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fifth); RDI – CBC – Radio-Canada by Jeangagnon (http://commons.wikimedia.org/wiki/File:RDI_-_CBC_-_Radio-Canada.JPG) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (sixth)

Figure 7.26:
Container ship CSCL Venus of the China Shipping Line outgoing Hamburg in April 2014 by Buonasera (http://commons.wikimedia.org/wiki/File:Container_ship_CSCL_Venus_of_the_China_Shipping_Line_outgoing_Hamburg_in_April_2014.png) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 7.27:
McDonald’s Rice by Abdul Rahman (http://www.flickr.com/photos/yunir/5287015064/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Tim Hortons –b by Saeed Jahed (http://commons.wikimedia.org/wiki/File:Tim_Hortons_-b.jpg) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (second); The KFC Colonel! by Lonnie (http://www.flickr.com/photos/hanataro/689530713/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (third); Subway-Restaurant in Passau by High Contrast (http://commons.wikimedia.org/wiki/File:Subway-Restaurant_in_Passau.jpg) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fourth); 7 eleven Bergen Nygardsgaten by Enrique Cornejo (http://en.wikipedia.org/wiki/File:7_eleven_Bergen_Nygardsgaten.JPG) used under CC-BY license (http://creativecommons.org/licenses/by/3.0/deed.en) (fifth)

Figure 7.28:
1965 Ford Mustang Assembly Line in Dearborn, Michigan by Alden Jewell (https://www.flickr.com/photos/autohistorian/6937147154/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 7.29:
Kfc of china by 陳炬燵 (http://commons.wikimedia.org/wiki/File:Kfc_of_china.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

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