The internet is a truly global phenomenon. By simply accessing the internet, an individual may tap into servers in any number of countries. In some ways, the choice to compete in international markets has become more of a necessity. Competition no longer just comes from domestic rivals but rather can arrive from anywhere on the planet. In this unit, we will learn about international strategies to maximize gain and minimize risk. We will apply the Diamond Model in a case study and use that information to choose the best way to enter an international market.
Reading Assignment
Ketchen, D & Short, J. (2012). Strategic Management: Evaluation and Execution. This book is licensed under a Creative Commons by-nc-sa 3.0 license.
- Chapters 7 and 8
Lehrich, J., Paredes, P. & Ravikumar, R. (2009). Compsis at a Crossroads. MIT Sloan School of Management. Retrieved from: https://mitsloan.mit.edu/LearningEdge/strategy/compsis/Pages/default.aspx
Henderson, R. & Reavis, C. (2009). Corning Incorporated: The Growth and Strategy Council. MIT Sloan School of Management. Retrieved from: https://mitsloan.mit.edu/LearningEdge/strategy/CorningIncorporated/Pages/default.aspx
Discussion Assignment
In this question, you will consider the main risks and rewards of international business for two firms.
- In the case of a large established domestic firm which of the potential rewards is greatest (new customers, lower costs, and diversification of markets) and which risk is greatest (political, economic, cultural)?
- In the case of a new entrepreneurial firm, which risks and rewards are greatest?
- Evaluate the reasons why the risks and rewards may (or may not) be different for the two types of firms.
