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Global StrategyCreating and Sustaining Advantage across Borders$
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Andrew Inkpen and Kannan Ramaswamy

Print publication date: 2005

Print ISBN-13: 9780195167207

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780195167207.001.0001

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Strategic choices in a Global Marketplace

Strategic choices in a Global Marketplace

Chapter:
(p.32) 2 Strategic choices in a Global Marketplace
Source:
Global Strategy
Author(s):

Andrew Inkpen (Contributor Webpage)

Kannan Ramaswamy (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195167207.003.0003

This chapter examines the strategic approaches that firms adopt in competing globally. Competing in global markets requires organizations to consider carefully an array of strategic options ranging from approaches that pursue localization at all costs to tight integration of markets and products across the globe. A fundamental premise is that any strategy seeking to address the global marketplace must leverage country-specific advantages. Organizations crafting global strategies must also make explicit choices about the location of value chain activities in order to leverage location-specific advantages. To examine these issues, the chapter uses the value chain concept to examine MNE strategic choices, and considers the strategies of adapting value chains on a country-by-country basis and aggregating value activities in the home country location. The chapter also examines strategic decisions spanning aspects, such as location choices; coordination mechanisms that help bridge the divide between headquarters and local subsidiaries; and the specific approach to technology and innovation.

Keywords:   organization, advantage, value chain, coordination, headquarters, innovation, country-specific advantage

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