Four Strategies Of International Operation

The world is getting smaller and smaller, and the market is getting bigger and bigger. The process of world economic integration is accelerating. The global economic factors such as trade, finance, investment and so on are becoming more and more integrated. After China's resumption of the customs, facing the new competitive conditions, Chinese enterprises must reposition, analyze the opportunities and threats of the external environment, and combine the strengths and weaknesses of the enterprises to choose a more potential market for their own development. With the acceleration of economic globalization, pnational operation has become an inevitable choice for more and more enterprises. What are the successful modes of pnational operation?

In fact, over the years, many multinational companies with different industries and characteristics have accumulated a lot of practical experience in international business strategy, which can basically be attributed to the four major international business strategies or models.

These strategies rarely appear in a single form. Enterprises may adopt more than one strategy at the same time. Each strategy has its own "InternalSuccessRequirements ISR". Therefore, the application of different strategies is largely influenced by the industry priorities of the enterprises.

Fayerweather and Kapoor, internationally renowned multinational business strategy experts, have been tracking many multinational companies for many years. We find that most multinational companies take the following one or more international business strategies in full consideration of external environment, competition factors and their own resources.

I. orientation of high technology

In some industries, enterprises can create unique competitive advantages through technological innovation and become market leaders.

Due to the introduction of international high technology, most governments welcome and support such enterprises to invest locally, or even offer preferential treatment.

Microsoft, IBM, SIEMENS and so on are typical examples of global high-tech enterprises.

Two, low end or stable.

This type of strategy is dominated by Panasonic, Electrolux, Caterpillar and many other global businesses, and most of them are durable goods.

Enterprises adopting such strategies must have these advantages, such as good reputation and well-known brand, proprietary production technology, larger scale of operation, and the ability of global production.

Due to different industries and barriers to entry, Panasonic and MITSUBISHI air conditioners are competitors all over the world, but there are different competitive brands in different regional markets, such as Haier and Kelon in China.

Three, advanced management technology strategy (AdvancedManagementSkillStrategy).

Many regional and global enterprises will adopt this strategy.

Typically, there are global consumer goods companies such as P & G and Unilever.

In general, the advantages of human management technology in strategic planning, marketing, financial management, human resources and other aspects, plus their ability to export these managerial advantages to other countries through management system and human resources, form the unique competitive advantage of such enterprises in the global scope.

Four.

Enterprises that apply the global production strategy must meet the following four key factors:

(1) the value / weight (volume) ratio of the product is relatively high, so it can offset the increased pportation cost from the origin to the consumption area.

(2) part of the production process of products should be labor-intensive and can be arranged in countries with low labor costs.

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