To measure internationalization

To measure internationalization:

Depth internationalization:

(Foreign production/Investments/sales/profits) / (Foreign « « »)

Breadth internationalization:

Number of foreign countries, number of foreign stores/subsidiaries

NUMBER OF STRATEGY

• To many stratégies (There is no only one strategy. All firms has their own

strategy)

PUTTING STRATEGY IN ITS PLACE

THE FIVE MAJORS ELEMENTS OF STRATEGY

• ARENAS : Where will be active ?

Which product catégories ?

Which market segments ?

Which geographic areas ?

Which core technologies ?

Which value-creation stages ?

• VEHICLES : How will we get there ?

International development ?

Joint ventures ?

Licensing / franchising ?

Acquisition ?

• DIFFERENTIATORS : How will we win ?

Image ?

Customization ?

Price ?

Styling ?

Product reliability ?

• STAGING : What will be our speed and sequence of moves ?

Speed of expansion ?

Sequence of initiatives ?

• ECONOMIC LOGIC : How will we obtain our returns ?

Lowest costs through scale advantages ?

Lowest costs through scope ans réplication advantages ?

Premium prices due to unmatchable service ?

Premium price due to proprietary product features ?

WHY SOME ENTERPRISES EXPERIENCE SUCCESS AND OTHERS FAILURE ? WHY THESE DIFFERENCES IN TERMS OF PERFORMANCE ?

• Strategy : The way firms sell products

• Size of the firm : Determined by its financial capability and resources

AN EFFECTIVE PROCES OF INTERNATIONAL STRATEGY FORMULATION

• Macro environment analysis (Suggested model : PESTEL)

• Analysis

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