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Global Expansion Strategies

JUST THE SMALL PROJECT

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Kshitij Rai
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37 views10 pages

Global Expansion Strategies

JUST THE SMALL PROJECT

Uploaded by

Kshitij Rai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Global Expansion

Strategies
Global companies often use a variety of strategies to expand their reach
around the world. Some common approaches include foreign direct
investment, joint ventures, strategic alliances, acquisitions, and mergers.
Foreign Direct Investment (FDI)
FDI involves a company directly investing resources and assets in a
foreign market. This allows the company to establish a physical presence
and operations in another country, giving them more control over the
business.
Joint Venture
A joint venture is a business agreement where two or more companies,
often from different countries, pool their resources to create a new entity.
This allows them to combine expertise, technology, and market access to
achieve a common goal.
Strategic Alliance
A strategic alliance is a partnership between companies that agree to
work together towards a shared objective. This could involve technology
sharing, co-development, or joint marketing efforts. Companies often
form strategic alliances to gain a competitive edge.
Acquisition
An acquisition is when one company purchases and absorbs another
company. This allows the acquiring company to quickly expand their
market share, gain new capabilities, or eliminate a competitor.
Merger
A merger occurs when two companies combine to form a single, larger entity. This is often done to achieve economies of scale,
diversify product offerings, or gain a stronger market position.
Examples of Joint Venture
GE-Hitachi Nuclear Energy Starbucks-Tata Global Beverages Airbus-Boeing

A joint venture between General A joint venture between Starbucks A joint venture between the two
Electric and Hitachi to develop and and Tata to open Starbucks cafes in leading aircraft manufacturers to
market nuclear energy technology. India. collaborate on technology and
production.
Examples of Strategic Alliance

Microsoft-Nintendo Google-Luxottica Delta-Air France-KLM


A strategic alliance to bring A partnership to develop innovative A global airline alliance to coordinate
Microsoft's cloud gaming services to smart eyewear products. flights, share resources, and provide
Nintendo's consoles. better service to customers.
Examples of Joint FDI

1 Volkswagen-Skoda
Volkswagen's joint venture with Skoda to produce cars
in the Czech Republic.

2 McDonald's-Yum! Brands
McDonald's and Yum! Brands' joint venture to open
restaurants in China.

3 Siemens-Gamesa Renewable Energy


A joint venture between Siemens and Gamesa to create
a leading wind turbine manufacturer.
Examples of Acquisition and
Merger
Acquisition Merger

Microsoft acquired GitHub Disney merged with Fox in a


for $7.5 billion $71 billion deal

Google acquired Nest Labs T-Mobile merged with Sprint


for $3.2 billion in a $26 billion deal

Facebook acquired Instagram Fiat Chrysler merged with


for $1 billion Peugeot in a $50 billion deal

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