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Global Strategy Implementation

In: Business and Management

Submitted By belaboy
Words 5816
Pages 24
Part Five

Chapter Eleven
The Strategy of International Business


• To identify how managers develop strategy • To examine industry structure, firm strategy, and value creation • To profile the features and functions of the value chain framework • To assess how managers configure and coordinate a value chain • To explain global integration and local responsiveness • To profile the types of strategies firms use in international business

Chapter Overview

Chapter Eleven presents tools and concepts used in analyzing and formulating international business strategy. First, the relationship between industry structure and competition in global industries is examined. Next, value chain analysis is used to identify the internal capabilities of the firm that can be leveraged to create competitive advantage. Effective international strategy depends greatly on the proper configuration and management of a company’s global value chain. The sometimes conflicting demands of global integration versus local responsiveness are examined. Finally, a typology of strategic alternatives including multidomestic, international, global, and transnational strategies is presented.


OPENING CASE: Value Creation in the Global Apparel Industry [See Fig 11.1 and Map 11.1.]

Zara, a large clothing retailer headquartered in northwest Spain, has used an innovative strategy to power its global expansion. The company has grown to more than 1,292 stores in 72 countries since its founding in 1975. Zara has made extensive use of information technology and e-business methods to implement dramatic reductions in the time it takes to design, manufacture, and distribute fashionable clothing at moderate prices. Zara has achieved extraordinary speed and...

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