MGC2120 Lecture Notes - Lecture 9: New Product Development, Wipro, Huawei
29 Sep 2018
School
Department
Course
Professor
Document Summary
Week 9: strategies of international business: cost pressures & pressures for local responsiveness. + to reduce cost & gain economy of scale, + pressures for cost reductions: to gain price. Firms that compete in the global marketplace typically face 2 types of competitive pressures: competitive. with local context (culture, institutional factors). These pressures place conflicting demands on the firm: + if a firm complies to the culture context, try to be very locally responsive, it"s expensive. Because it need some different model in the local market to comply with local context. produce in large volume it can"t comply with local context: cost pressures: pressures for cost reduction are greatest: The demand condition & product is very similar in the world/market firms try to get competitive advantage through price competition create pressure to reduce cost of production to the rest of the firms in the market. Some competitive firms locate their production activities in different developing/low costs countries.
