Ghoshal

Sources of Competitive advantage on a multinational level Ghoshal's framework

• 1. Achieve efficiency
• 2. Manage Risks - Political, Resource, Macroeconomic, Competitive
• 3. Innovation - Resource-based thinking
• 4. Expolit Comparative Advantage - Country-Specific Advantage also Clustering (Pharma, Silicon Valley, F1)
• 4b Exploit EoScale, EofScope

There are trade-offs between alternative strategy choices

Multi-domestic. MNE sells across many countries but develops individual Supply Chains and takes into account local cultural conditions. Decentralozed federation that are flexible but higher costs - e.g

International transfers skills and capabilities to new markets/ Their is local discretion about what products to offer but marketing and strategy are kept central e.g. P&G

Global - profitability through standardization Coca Cola, Semi Conductors

Transnational - Exploit experienced based cost economies and transfer them within the co but also has some local responsiveness Toyota