Global Expansion Strategy Research Articles

Brazilian Secrets Hair Case

ABSTRACT This is a case for teaching focused on the internationalization process of Brazilian Secrets Hair (BSH), a company that has considered the world as its target market since its start, and is part of an ever-growing segment: the cosmetics industry. Upon understanding the company’s international expansion, the internationalization theories within the behavioral approach, such as the Uppsala theory, the network theory, the entrepreneurship perspective, and the effectuation logic, can be explored, answering questions related to market selection processes, entry mode choices, and global expansion strategy decisions. This case was based on primary and secondary data from a real company and was originally designed for international business classes of graduate courses.

FROM GLOBAL MINDSET TO INTERNATIONAL OPPORTUNITIES: THE INTERNATIONALIZATION OF CHINESE SMES

Following China’s “One Belt One Road” global economic expansion strategy, Chinese small and medium-sized enterprises (SMEs) along with state-owned, large corporations are increasingly seeking business opportunities internationally. Little is known about the process of small firms’ international opportunity creation and discovery in this particular context. This study examines the role of Chinese SME manager’s global mindset in driving their international opportunity identification through two key activities in their internationalization process: international knowledge based and networking activities. Data were collected from a survey of 191 small and medium-sized enterprises in China. The results of structural equation modelling show that Chinese SME managers’ global mindset has a positive effect on both international networking and knowledge acquisition activities, which in turn have positive effects on the development of international opportunities. The findings suggest that SMEs, while going through the internationalization process, rely extensively on social interaction with foreign business partners to obtain knowledge of the customers and institutions in the foreign market.

Geopolítica y cooperación espacial: China y América del Sur

Este artículo tiene como objetivo analizar la cooperación entre China y América del Sur en el campo espacial, a partir de dos preguntas: 1) ¿qué lugar ocupa la política espacial en la estrategia geopolítica de China y cómo entra la región suramericana en ella?; y 2) ¿se trata de un caso de cooperación Sur-Sur? Para responder estos interrogantes, usamos un enfoque geopolítico y tomamos en cuenta tres factores: 1) si existen condicionamientos políticos o económicos por parte de China; 2) si hay transferencia en materia de tecnología; y 3) si se produjo alguna cesión de soberanía. Como resultado, planteamos que la política espacial china es parte central de su estrategia de expansión global, pero que es selectiva en América del Sur, en tanto se focaliza en determinados países; y que, a pesar de la proclama de establecer un tipo de cooperación ‘horizontal’, el vínculo en el campo espacial es más bien asimétrico.

CHINA-INDIA’S CONFLICT OF INTEREST IN THE REGION OF SOUTH ASIA

The trends of the growing confrontation of international relations and the increasing role of Asian countries in world politics directly affect the issue of China-India interaction in the strategically important region of South Asia. It is clear that the role of the region for each of the sides has a different weight: if India considers leadership in South Asia as a key geopolitical goal, for the PRC it is only one element of the global expansion strategy. Both states are trying to consolidate their influence in the region through various kinds of collaboration and assistance, using bilateral and multilateral formats of cooperation. In particular, at the level of competition of geoeconomic initiatives, China is actively promoting the “One Belt, One Road” project, while India seeks to balance using a wider range of integration tools – SAARC, “NorthSouth”, “Spice Route” and “Look East” policy. However, the Chinese side is achieving success due to great financial opportunities and promises, the needs of the countries of the region for external impulses for economic development, the lack of determination in Indian regional politicy, and the rejection by South Asian countries the prospect of Indian domination, key reason of what is various kinds of problems in relations with official New-Delhi. This concerns primarily Pakistan, which at the same time is a key regional partner of China. Now the regional policy of India has a clear advantage over the Chinese strategy of "geopolitical ticks" only in Bhutan and tactically in the Maldives. However, Chinese influence is increasingly causing concern among the regional given the growth of financial dependence, the use of so-called “debt-trap diplomacy” and even a demonstration of strength, the most colorful evidence of what is the experience of Sri Lanka.

Heterogeneity in top management teams and outward foreign direct investment: evidence from Chinese listed companies

Drawing upon the knowledge-based view and team learning, we investigated how heterogeneity in top management teams (TMTs) in China influences global expansion strategies. Using panel data from Chinese listed firms from 2008 to 2014, we found that TMT functional background heterogeneity could positively affect firms’ commitment to outward foreign direct investment (OFDI), as the diversification of TMT members can enrich the team’s knowledge, facilitate efficient team learning, and enhance the decision-making capacity on overseas expansion. However, tenure heterogeneity may hinder knowledge acquisition and team learning among TMT members, hence undermining firms’ OFDI commitment.

The New Silk Road of BLACKYAK

BLACKYAK, a native brand founded over 40 years ago, is considered to have driven the growth of Korean outdoors market, the secondlargest single-country outdoors market in the world. It has seen remarkable achievements in Korea, and is now aggressively expanding to overseas markets in an attempt to develop the BLACKYAK version of ‘Silk Road’. BLACKYAK is taking aggressive measures to establish development processes and core capabilities that meet the global standard by entering Europe, the home of the outdoors market. It is implementing collaborative strategies to promptly make up for its weak points compared to local demands, such as adopting a product development strategy of applying high functionality to BLACKYAK’s differentiated designs and recruiting local marketers. This case study will analyze the core capabilities that enabled BLACKYAK’s global expansion as well as the limitations it must overcome, and research effective global expansion strategies in-depth based on the above.

Digital Learning in the UK: Sociological Reflections on an Unequal Marketplace

Focusing on the UK context, and drawing on freely available information about online learning and the underlying commercial agreements between institutions, Massively Open Online Course (MOOC) platforms and Online Program Management (OPM) companies, this article shows how digitization and universities’ global expansion strategies are involved in forms of transnational marketization. In particular, the article shows that the online learning marketplace in the UK shows signs of segmentation, with ‘premium’ offerings in the high-to-middle tier targeting socially advantaged students-as-consumers, and a bottom region of low-ranking institutions drifting towards low-grade ‘unbundled’ provision that targets middle-to-low income groups. The article argues that the current global landscape of online education is a shifting, unequal market place, and that more research is needed on how different groups from a range of socio-economic backgrounds successfully or unsuccessfully navigate an increasingly fragmented and ‘unbundled’ educational terrain.

Game On: The Rise of the eSports Middle Kingdom

This article examines the rise of eSports in China in the context of China's promotion of digital economy and digital platforms. It argues that the rise of the eSports Middle Kingdom is an example of a collaborative effort by the money- power alliance to use the logic of digital capitalism to realize the Chinese Dream. It focuses on two of Chinese internet and e-commerce heavyweights-Alibaba and Tencent-and examines their aggregated and global expansion strategies through eSports. This is pertinent to the current discussion on Chinese digital platforms' Asia-Pacific expansion. It is also significant in that China has not only taken on South Korea as the mecca of eSports but also taken over North America and Europe as the world's largest eSports market. The article ultimately outlines how politics, capitalism, and nationalism are intertwined in investing in and staging live eSports spectacles in China.

Kolon FnC’s Global Expansion Strategy

Korean fashion firms face difficulties in sustaining their growth momentum because of market stagnation and the aggressive entry of global luxury and SPA brands. To find a breakthrough, local fashion firms are adopting diverse strategies, including direct entry, licensing, and acquisitions, to successfully tap into the global market. Kolon FnC, which is among the five affiliates of Kolon Industries, focuses its business in the production and sales of fashion goods and clothing lines. Focusing on its strength as a leading brand power in the sports and outdoor segment, Kolon FnC is making strategic moves, such as diversifying its fashion portfolio, creating new value by collaborating with artists, and enhancing its R&D capability for new garment materials, which is led by one of its sister affiliates, Kolon Fashion Material. Under the leadership of the newly appointed CEO Dong-Mun Park, Kolon FnC is aggressively seeking talented young designers in Korea to differentiate itself from its global competitors. CEO Park strongly believes that talented young Korean designers can be a viable source of competitive advantage against global competitors. Since 2010, Kolon FnC has acquired several small-sized designer shops and fashion accessory shops to diversify its fashion portfolio and to create a young and vibrant brand image. This approach marks a departure from the strategic paths of its major local competitors, as Korean fashion firms typically focus on licensing or acquiring foreign brands. This case aims to identify the practical implications of global expansion strategies by analyzing how the Korean fashion industry has evolved and how Kolon FnC and its competitors have deployed different global expansion strategies in developing their resources and/or capabilities for future growth.

Huawei y Foxconn: casos pioneros de la nueva internacionalización y expansión regional de China en México

Objetivo: documentar el caso de dos empresas de origen chino que son líderes mundiales en sectores de tecnología digital y telecomunicaciones: Huawei y Foxconn. Ambas empresas son casos pioneros de la globalización china en México. Metodología: a través del método de estudio de caso, se busca mostrar evidencia de esta nueva fase de la internacionalización productiva china hacia México. Resultados: los principales resultados del análisis evidencian una relación económica asimétrica entre México y China. Limitaciones: si bien, el comercio entre ambos países ha tenido un importante crecimiento en los últimos años, ha estado marcado por un desequilibrio favorable para China, a pesar que no se presentan signos evidentes que muestren si las empresas chinas tendrán en México un punto focal de su internacionalización. Conclusiones: el análisis de caso de ambas empresas permite explicar su modo de expansión internacional y su presencia en México. Aunque México no fue su destino inicial, ambas firmas tienen operaciones en el país como parte de sus estrategias de expansión global marcadas desde etapas tempranas de internacionalización. En cada caso, la firma respectiva ha seguido sus patrones de globalización, esto les ha permitido consolidarse como empresas líderes en las industrias en las que se insertan.

Osklen: the aesthetics of social change

Subject area Sustainable fashion. Study level/applicability Bachelor Degree/Master Degree, Master of Business Administration (MBA), PhD. Case overview The case focuses on Osklen, one of the world’s first eco-fashion brands, founded in 1989 by Oskar Metsavaht. For the past 26 years, Osklen had become Brazil’s foremost sustainable luxury venture, and since 2012, under first minority and then majority corporate ownership, pursued an aggressive global expansion strategy. The dilemma of the case juxtaposes Osklen’s creative aesthetics, which leverage unique Brazilian beauty in nature and heritage, with the financial pressures of global expansion. The tension is exacerbated by the 2015 corruption scandal, which decelerated the Brazilian economy and reduced consumer spending on sustainable luxuries in Osklen’s home market; it also risked compromising the appeal of Brazilian brands elsewhere. The case explores the complex interconnections between local and global aspects of sustainability and brings forward the environmental, social and cultural aspects of brands and business to the foreground. The case also illustrates how economic crises impact brands from the initial creative inspiration to the prospects of global expansion. Expected learning outcomes Students will master tools for strategic analysis (VRIN framework and scenario planning) to a company evolving in an emerging economy. They will learn about the ways to consider and communicate sustainability. Students will be exposed to the importance of aesthetics and multi-sensoriality in business activities. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 11: Strategy

BUSINESS STRATEGY IN INNOVATIVE AND NON-INNOVATIVE COMPANIES OF VARIOUS SIZES

The influence of innovation upon the competitive advantage of companies seems to be an actual issue worth examining. That’s why it is interesting to investigate the various aspects of the strategies pursued by companies classified as innovative or non-innovative. The aim of the research was to check whether the differences between enterprises can be traced back to their sizes or should rather be derived from their unique characteristics. In order to test the hypotheses, the correlations (established on the basis of the Kendall's tau-b correlation coefficient) between specified research areas and the size of the company were calculated for the two groups of companies (innovative and non-innovative). The study was conducted using the PAPI technique and the 5-point Likert scale. The research sample included two groups of companies – innovative (88 companies) and non-innovative (34 enterprises). The respondents in the survey included company managing staff. Presenting the findings of the research, it can be pointed out that in a group of innovative companies no distinctness regarding the primary objectives of strategy could be demonstrated. Only the correlations between the size and risk of the business and the implementation of global expansion strategy can be considered. Companies that are not oriented to innovation, however, significantly differ only regarding to strategy formalisation, which increases with the organisation’s growth. The main research findings proved that there is a lack of noticeable differences in the strategies of innovative and non-innovative companies analysed in terms of their size. Key words: aspects of strategy, company size, innovation, competitive advantage, business strategy, small and large company.

China’s Dual Enforcement System regarding Resale Price Maintenance Agreements

RPM can be both beneficial and harmful to competition in various circumstances. RPM has been scrutinized with the subject of private litigation in the US, the EU and China regarding whether RPM is per se illegal or subject to the rule of reason. China's dual-mode regulatory scheme provokes more challenges and further complicates foreign companies' global expansion strategies. Following a review of the US and EU approaches to RPM, the article examines the landmark case of Ruibang v. J&J, which provides clarity and in-depth guidance on the unique Chinese system. It is argued that these administrative and legal uncertainties may not be addressed until a new judicial interpretation is provided by the Supreme People's Court.

Global Expansion Strategy of Chinese Herbal Tea Beverage

In order to provide insights into the potential future of Chinese herbal tea beverage industry, we analyze serious challenge on how the herbal tea beverage will develop global expansion strategy in china, as well as a series of recommendations as to how the sector might collaborate and respond. This study discusses the key challenges and opportunities factors that Chinese traditional tea industry face, from across the global value chain, representing both producer and consumer countries and including topics ranging fr om climate change to finance and markets. For these ever-growing problems, factors as diverse as the use of precision farming, biodiversity, production instability and consumer demand for personalization of products were identi fied. To support the development of Chinese traditional tea industry, increase investment, vigorously promote to transfer Chinese traditional tea into fast, convenient, standardized and normalized tea beverage products for global expansion strategy of Chinese herbal tea beverage, so as to promote the development of Chinese traditional tea industry and make the regional contribution to the realization of Chinese dream.

Cultural distance and entry modes: implications for global expansion strategy

Purpose– The purpose of this paper is to take a strategic perspective on how MNEs in the retail sector decide to enter a new market. Drawing on transaction cost theory, the contingency approach and resource-based theory, the implications of the interplay between global strategy, cultural distance and entry mode strategies are examined by means of an analysis of Carrefour’s global expansion.Design/methodology/approach– To account for the shortcomings of prior research, a hypothesis in the relationship between entry modes and cultural distance is tested empirically using a sample of 44 foreign market entries by Carrefour over the 40 last years. The paper uses a quantitative approach, i.e., logistic regressions. To measure cultural distance, the authors rely on the GLOBE dimensions and the Kogut-Singh Index.Findings– The findings suggest a positive relationship between a resource commitment, entry mode strategy and cultural distance for Carrefour. However, these findings are contrary to the mainstream argument that high cultural distance is related to entry strategies based on relatively low resource commitment. The authors explain these findings by integrating a cultural distance perspective with Carrefour’s overall global expansion strategy.Research limitations/implications– Because of the chosen research approach, the research results may lack generalizability.Practical implications– The paper provides insights into why prior research on cultural distance and entry modes has yielded mixed results. From a strategic viewpoint, the paper stresses the particularities of the retail sector and how retailers try to account for cultural distance in their entry mode decisions.Originality/value– By focussing on a single company instead of a meta-analysis, the analysis demonstrates how the search for strategic consistency and the particularities of the retail sector reverse a well-investigated theoretical assumption. The main originality of the paper is that it shows the implications of the interplay between cultural distance and entry mode as being part of the retail firm’s overall global expansion strategy.

Global Market Evaluation: A Longitudinal Efficiency Assessment Approach

Both experienced and novice international business practitioners may need to examine many country ranking reports on a frequent basis. Most of these reports focus on certain socio-economic variables and compute country rankings with a weighted average method, which does not distinguish between likely causes (i.e. inputs) and consequences (i.e. outputs). Through data envelopment window analysis (DEWA), the publicly accessible globalEDGE™ data were employed to compute the relative efficiency index for 22 countries from 2002 to 2009. Subsequently, the trend (averages) and the consistency (correlations) of relative country efficiency along the passage of years were examined to segment those countries into three groups: the “consistent performers,” the “sliding performers,” and the “improving performers” groups. This segmentation scheme may facilitate business practitioners when they develop their global expansion strategy. This paper introduces a complementary yet different longitudinal efficiency which could help multinational corporations’ top management teams and government decision makers evaluate the continuous performance of output/input efficiency.

A Study on the Retailer`s Global Expansion Strategy and Supply Chain Management : Focus on the Metro Group

A Study on the Retailer`s Global Expansion Strategy and Supply Chain Management : Focus on the Metro Group

A Study on the Retailer`s Global Expansion Strategy and Supply Chain Management : Focus on the Metro Group

A Study on the Retailer`s Global Expansion Strategy and Supply Chain Management : Focus on the Metro Group

A Study on the Retailer`s Global Expansion Strategy and Supply Chain Management : Focus on the Metro Group

A Study on the Retailer`s Global Expansion Strategy and Supply Chain Management : Focus on the Metro Group

Joint Global Expansion Strategies between Supply Chain Participants and Logistics Service Providers

This paper analyzes the structural problems of the collaboration in joint global market expansion through literature review and questionnaire analysis on the common practices of joint efforts between the manufacturing and retailing corporations and 3PLs. And it studies problems and successes in collaboration between and among such supply chain participants through interviews and case studies. Based on such analyses, the collaboration model and finally practical guidelines for joint global operations are developed.