Global Strategy

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From the Editor: Innovation and China

In today’s global economy, there aren’t many large companies that can afford to ignore China in their plans for growth. The Summer 2014 issue of MIT Sloan Management Review features a special report on China, with insights about how to learn from China, what the future may hold for the Chinese economy — and how to do business in China despite the challenges of protecting intellectual property there.

Image courtesy of Flickr user Ming Xia.

Protecting Intellectual Property in China

“By operating in China, overseas businesses expose their intellectual property to risk,” write Andreas Schotter (Ivey Business School at Western University) and Mary Teagarden (Thunderbird School of Global Management). “But deciding to stay away entails the even greater risk of missing opportunities to acquire knowledge that is critical for competitiveness across a wide range of global markets.” To protect their IP, companies need to control and manage their IP vulnerabilities proactively.

Image courtesy of Flickr user Electrolux Design Lab.

Should You Have a Global Strategy?

Senior executives weighing strategies appropriate for today’s global economy will hear contradictory advice. Some say you need to move quickly, before competitors, to establish a worldwide presence; others cite data showing that this approach is often less profitable. The reality is that neither approach is appropriate for every circumstance. Therefore, executives need to understand when to pursue one route and when to pursue the other.

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How to Win in Emerging Markets

Though competitive barriers in Asia, Latin America and Eastern Europe are many, a look at the companies that are thriving there reveals some secrets that make success more likely.

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Strategies for Competing in a Changed China

A decade ago, multinational companies seemed poised to dominate in China. Today that picture has changed. Whereas IBM, HP and Compaq had quickly won more than 50% of the personal computer market, for example, Chinese company Legend Group Ltd. is now the number one supplier. Research in 10 industries over the last 10 years reveals a pitched battle of competencies between multinational and local players and points to five strategies that can help multinationals regain the edge.

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New Strategies in Emerging Markets

Emerging markets (EMs) constitute the major growth opportunity in the evolving world economic order. Their potential has already effected a shift in multinational corporations (MNCs), which now customarily highlight EM investments when communicating with shareholders.

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How to Address the Gray Market Threat Using Price Coordination

Gray market goods — brand name products sold through unauthorized channels — are an increasing threat to multinational companies. The authors present a framework to help select the right approach to coordinating price-setting decisions on the basis of a subsidiary’s local resources and the complexity of a product’s market. Examples of price coordination methods are provided.

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