BUS 346 Lecture Notes - Lecture 2: Tacit Collusion, Walmart, Cost Leadership

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 346
• Professor: Chang H Oh

Document Summary

Objectives: national competitiveness (describe the characteristics of mnes, explain the internationalization process, explain why firms become mnes, discuss the strategic philosophy of these firms), introduce a country/firm framework for examining a firm"s competitiveness. Demand conditions size (population), growth, intensity (income) Related and supporting industries steel (automobile), universities (technology), government. Firm strategy, structure and rivalry government (rivalry), firms (strategy) Each of these determinants depend on the others. Critical factors in wal mart"s success story: good strategy and structure advanced logistics, entrepreneurial culture, supply chain relationships, price leadership. Factor & demand conditions: wealthy suburbs with inexpensive land. Land usually located on outskirts of town, so cheap land for warehouse. Labor cheap labor, low wages (middle income population) Demand favors smaller amounts of spending warehouses. Supporting industries open market system in china low cost for supplies. Not well: germany, japan, sk (service oriented; established competition from local low cost companies)