The Strategic Position of SEIKO——Global strategy and Innovation

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The Strategic Position of SEIKO——Global strategy and Innovation

Post  loujia on Tue Oct 11, 2011 11:04 am

What is globalization, and why is it important, even to domestic firms? In what ways is globalization perceived as a benefit and as a threat? Genarally speaking, there are three motivations for firms to exploid Global strategy. First, Offensive motive – seize market opportunities in foreign countries through trade or investment. Second, Defensive motive – to protect and hold a firm’s market power or position in the face of threats from domestic rivalry or changes in government policy. Third, strategic motives– Capitalize on distinctive resources or capabilities already developed at home.
Most early MNCs were generally evolutionary; but we see more EM MNCs, late movers, niche players, and born-global firms that are radical. OEM is one specific form of international subcontracting, in which a foreign firm supplies a local company with the technology and sophisticated components so that the latter can manufacture goods that the foreign firm will market under its own brand in international markets.

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