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European Integration Slide For Exam

When moving to a foreign market customers do not know you and you don't know the customers. Balance between responding to the wishes of the customers and realising some local economies of scales and integrating some roles.

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Robert-Cristian Tudor
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18 views1 page

European Integration Slide For Exam

When moving to a foreign market customers do not know you and you don't know the customers. Balance between responding to the wishes of the customers and realising some local economies of scales and integrating some roles.

Uploaded by

Robert-Cristian Tudor
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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When moving to a foreign market customers do not know you and you dont know the customers

Challenge: Balance between responding to the wishes of the customers and realising some local economies of scales and integrating some roles

Liability of being foreign


Develop competitive advantage

Integration versus responsiveness


Redefine the firms competitive advantage

Identification of firm specific competitive advantage

(OLI)
Comparison of locational advantages

Choice of market entry strategy

Adjust to and learn from local conditions

Choose optimal corporate organisation

O
Ownership Advantages

L
Location Advantages

I
Internalisation
HQ Managed or Local Managed

Marks & Spencer failed to do this and as a result had no differential to offer in the EU market. As a result they pulled out of their international expansion and are only now investigating a return into foreign markets.

Why is this framework useful: Eclectic and extended synthesis of many different insights, not predictive, useful for check-list approach and framework is regularly extended. Perspective of an internationally operating company Focus on three questions why go abroad? Ownership advantages where? Location advantages how? Internalization advantages/strategy of competitors

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