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ctors include digital munication systems and educated workforce 10 International BusinessLevel Strategy: Determinants of National Advantage ? Demand conditions: characterized by the nature and size of buyers’ needs in the home market for the industry’s goods or services – size of market segment can lead to scaleefficient facilities – efficiency can lead to domination of the industry in other countries – specialized demand may create opportunities beyond national boundaries 11 International BusinessLevel Strategy: Determinants of National Advantage ? Related and supporting industries: supporting services, facilities, suppliers and so on – support in design – support in distribution – related industries as suppliers and buyers 12 International BusinessLevel Strategy: Determinants of National Advantage ? Firm strategy, structure, and rivalry: the pattern of strategy, structure, and rivalry among firms – mon technical training – methodological product and process improvement – cooperative and petitive systems 13 International CorporateLevel Strategy Need for Local Responsiveness Need for Global Integration Low High Low High Global strategy Transnational strategy Multidomestic strategy 14 International CorporateLevel Strategy ? Type of corporate strategy selected will have an impact on the selection and implementation of the businesslevel strategies ? Some corporate strategies provide individual country units with flexibility to choose their own strategies ? Others dictate businesslevel strategies from the home office and coordinate resource sharing across units 15 Multidomestic strategy International CorporateLevel Strategy: Multidomestic Strategy ? Strategy and operating decisions are decentralized to strategic business units (SBU) in each country ? Products and services are tailored to local markets ? Business units in one country are independent of each other ? Assumes markets differ by country or regions ? Focus on petition in each market ? Prominent strategy among European firms due to broad variety of cultures and markets in Europe 16 International CorporateLevel Strategy: