Global Challenges
Extra costs faced abroad (laws, culture, coordination).
What is the liability of being a foreigner?
Strategy involving scaling and replicating what you already do abroad.
What is Deployment?
The three A’s of the AAA Triangle.
What is Adaptation, Aggregation, Arbitrage?
Location Strategy framework.
What is location characteristics, government policy, firm fit, competition?
Retailer that exited Germany, Japan, Brazil, and the UK after poor adaptation.
Who is Walmart?
Paradox that makes it hard to replicate a home-market model abroad.
What is the Paradox of being consistent?
Strategy involving learning in one market and applying it globally.
What is Development?
CAGE
What is Cultural, Administrative, Geographic, Economic distance?
Four entry clocks.
What is Location, Incentives, Firm, Competitive?
Shaped Intel’s decision to expand into Vietnam.
What is Government incentives?
Investors discount global firms due to frequent underperformance.
What is global diversification discount?
Strategy that uses capabilities/market power to raise WTP or lower costs.
What is Deepening?
The “A” that is about exploiting cost differences across countries.
What is Arbitrage?
The "clock" in the wireless industry that can lead to a permanent lockout if missed.
What is the competitive clock (licenses)?
Brexit forced auto firms to rethink operations due to this factor.
What is policy and location fit changes?