Industry structure:
involves relationships among
Suppliers/Buyers/Substitute products/Potential new entrants/Rivalry among competing firms
•These forces shape industry attractiveness and have
•the Biggest impact on MNE’s strategic options
Value Chain
the set of linked activities
Design-operations-logistigs-marketing-service
•review each set of activities
•determine where we can add the most value relative to industry competition
Key issues in Value Chain development:
Business Environment-
Innovation-
Economies of Scale-Cosst-
Logistics-
Digitization Digitalisierung
Configuration,
distributing value chain activities around the world
Concentrated 1 loc – Dispersed >1 loc
Coordination
linking the value chain activities so that operations flow smoothly
global integration
Globalized Markets: converging consumer preferences
Efficiency through standardization, economies of scale
local responsiveness
Consumer preferences do still differ in each market
Government policies differ by market