Archivio tag per: international strategy

Are you exploiting your Multinationality Advantage?

Reading time: 5 minutes

29 Giu
29/06/2016
Foto del profilo di Markus Venzin

by Markus Venzin

SDA Professor of Strategic and Entrepreneurial Management

Many Italian firms have increased their international presence substantially in the past two decades. The challenge these firms face now is to take advantage of their international footprint without suffering from what McKinsey has labelled “the Globalization Penalty”.

They try to generate multinationality advantage by creating larger, more specialized production hubs that serve several countries, by reducing fixed costs through the creation of regional headquarters, by leveraging on knowledge generated in different geographies, or by exploiting a firm’s specific resources such as talents, brand equity, technologies, and patents across multiple markets to increase revenues, reduce costs or manage risks.

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International arbitrage: the role of digital networks

31 Mag
31/05/2016
Foto del profilo di Olga Annushkina

by Olga Annushkina

SDA Professor of Strategic and Entrepreneurial Management

We do arbitrage all the time. Our daily routines consisting of private and work-related decisions are all about measuring and comparing the differences. An online purchase of a car insurance via a quote calculator: price arbitrage. Choosing a certain restaurant with a dinner with friends: benefits arbitrage. Using public transport vs. car: time arbitrage. Delocalization of an assembly line to an emerging market: labour cost arbitrage. Delocalization of an R&D centre close to a university hub: knowledge arbitrage.

To large extent, globalisation processes are all about arbitrage too – resources, products and services are shifted among countries in attempt to capture the opportunities arising from the differences among markets.
Digital networks, reducing barriers to international markets and connecting companies at the global level, have become a major catalyst of cross-border arbitrages.

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The Notebook that conquered the World. An interview with Arrigo Berni*

Reading Time: 8 minutes

19 Gen
19/01/2016
Foto del profilo di Olga Annushkina

by Olga Annushkina

SDA Professor of Strategic and Entrepreneurial Management

BerniMoleskine notebooks, today famous all over the world, were born for the second time in Milan, Italy in 1997. In the first 9 months of 2015 Moleskine Srl revenues exceeded 86 mln Euro (annual revenues in 2014 were 98 mln Euro). With Mr.Arrigo Berni, CEO of the company, we discuss how Moleskine brand is dealing with opportunities and challenges of adaptation to local cultural settings around the globe.

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VIDEO: Rebuilding clients. How to redefine your Strategy

09 Dic
09/12/2015
Foto del profilo di Antonello Garzoni

by Antonello Garzoni

SDA Professor of Strategic and Entrepreneurial Management

In 2010, Pilosio, an Italian SME specialized in the production of formwork and scaffolds, had to cope with a major crisis in the local construction market.

The company redefined its Strategy by moving to more attractive international markets and transforming the business model from a product-oriented dealer company to a total solution-oriented engineering company. Since 2011 the company has grown at a 30% CAGR and has now become a global company, with over 90% of its turnover generated abroad.

In this interview, Dario Roustayan, CEO of Pilosio, and Antonello Garzoni, SDA Professor of Strategic and Entrepreneurial Management, address the most important decisions made in order to obtain these results, focusing on how to build a customer-centric organization and on how to re-position a company at a global level.

Beyond the handshake: pitfalls of international Joint Ventures

Reading time: 7 minutes

15 Lug
15/07/2015
Foto del profilo di Olga Annushkina

by Olga Annushkina

SDA Professor of Strategic and Entrepreneurial Management

The need to rapidly grow on new markets is leading many firms to search for local partners and to form cross-border equity joint ventures. Among other entry modes to the foreign markets based on an equity investment, the joint ventures, at the first sight, possess many advantages: possibility to share risk and investment with the foreign partner, access to the local knowledge, distribution, partners and authorities via foreign partners' networks. In some countries forming a joint venture is requested by the local legislation and represents the only way for a company to enter the market. For example, 6,5 mln out of 22,2 millions of passenger cars sold in 2013 in China were produced by the international joint ventures formed before 2005 between Chinese automotive producers and main global brands.

The apparent ease of forming a joint ventures is leading many managers and entrepreneurs to undervalue the significance of the preparation phase to the joint venture formation. The sources of tensions and conflicts for the joint venture partners can be really many. In fact, the joint ventures are considered to be one of the most unstable entry modes to the foreign markets, and the uncertainty about the joint venture’s competitive performance seems to be just one of the many factors potentially hindering its success.

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