Expansion Motives: Market, efficiency or resource seeking
Peloton seeks this to increase revenue in Japan.
Market Seeking
Lush sells the same products globally with zero adaptation.
International
Peloton partners with a local firm to distribute bikes.
Joint Venture
Peloton changes instructors to match local culture.
Transnational
The feeling of cultural or language difference between countries.
Psychic Distance
A firm moves abroad specifically to find cheaper labor or raw materials.
Resource Seeking
High pressure for cost reduction and low pressure for local adaptation.
Global Strategy
Entering a market by allowing a local partner to use your brand for a fee.
Franchising / Licensing
Hoka chooses a "relationship" based on cost efficiency and standard shoes.
Global
A resource that competitors cannot easily duplicate or buy.
Inimitable
Ducati enters India to reduce high production costs found in Italy.
Efficiency Seeking
Hershey's changes its chocolate recipe for every country.
Multidomestic
Ducati sends finished motorcycles to India from Italy.
Exporting
Ducati brings the same Italian luxury bike to the world.
International
Model suggesting firms expand to "similar" countries first.
Uppsala Model
Bonus question!!!: According to VRIO, the best advantage is Sustained because it is Valuable, Rare, and
Immitable
Strategy where the firm is a "local" player in every market.
Multidomestic
Entering a new market by purchasing an existing local company.
Acquisition / Inorganic
Sephora "matches" with a country by changing its inventory to local tastes.
Multidomestic / Transnational
A "Born Global" company like Steam ignores this model.
Uppsala Model
Hoka goes to South Africa to gain access to a specialized logistics hub.
Resource Seeking
Airbus balances global scale with local government regulations.
Transnational
Steam expands globally without physical infrastructure.
Digital / Licensing
Hoka sells the exact same shoe design everywhere.
Global
Ducati in India faces high distance due to this regulatory barrier.
Import Taxes/Tariffs