SGMT 3000 Lecture Notes - Lecture 8: European Cooperation In Science And Technology, Intangible Property, North American Free Trade Agreement
13 Dec 2017
School
Department
Course
Professor
Document Summary
Companies will succeed in industries where the four attributes are favourable, effect of one attribute is dependant on the others. Framework helps managers id where competitors would reside. Cost pressures and pressures for local responsiveness (1) pressure for cost reduction. Minimize unit costs but having production at lower cost location and possibly offer standardized product for economies of scale. Certain functions such as tech-support may be moved to another country for lower costs. Important in commodity markets (2) pressure to be locally responsive. Differentiate the product based on the nation it is being sold in to accommodate diverse demand, government policies, competitive conditions, etc: differences in consumer taste and preferences. Modern communication and transport technology has led to a convergence of consumer tastes. 62: differences in infrastructure and traditional practices. Different electrical voltage compatibility in europe and north america: difference in distribution channel. Different method of obtaining the same products: host government demands.
