Реферат: What strategy are most effective in the conditions of globalization

That integration strategy was successful, it is necessary to acquire success key drivers, such as:

- Support on strong position. To achieve success in the world market, the integrated enterprise should adjust efficient control all components of a price chain that will allow to resist to numerous competitors. To this strategy should adhere and those companies which were already fixed in the sector. Beginners seldom manage to use the given advantage, as they don't have that set компетенций, which are necessary to subordinate to itself all links of a chain. So, it is better to them to specialize on one of components of general activity and not to risk, trying to master others.

For example, Sony has stopped the choice on integration. At a growing competition capability to combine different types of activity allows this company to outstrip competitors in an adaptation question to changeable requirements of the market and to provide to the brand image of the manufacturer of high-quality electronics;

- Enterprise carrying over on the new place, allowing to get access to the most favourable resources. Even if the integrated enterprises aren't subcontractors, all of them are equally interested in receiving benefit from globalization, choosing for the factories a convenient site and by that reducing the costs for production. As an example it is possible to result the Spanish company Zara which more than half of goods produces at home, but at the same time places production and in the countries with cheap labor power (in the Eastern Europe and Asia). The Hourly pay of work of the Chinese worker averages $1, while in the USA or the Western Europe — from $15 to $30. Other example — large capital publishing houses which use the typographies located in a province. Enterprise moving on a new place allows to get also access to those компетенциям which aren't present in own market. For example, the American players of the market of credit cards successfully transfer some tasks connected with the analysis of client base to India. As a result it is possible to lower essentially costs, and also not to involve in the decision of this problem of the American specialists which consider its excessively labor-consuming.

Benefit from moving can be received, only if to improve necessary skills and to deepen the knowledge. First of all it is a question of employees who are capable to establish effective mutual relations, successfully overcoming language and cultural barriers. Besides it is necessary to allocate means for quality control of conditions of moving. And at last, to invest in struggle against numerous specific risks (tab. 1), such as: policy risks, a know-how or intellectual property leakage, risk of fast deterioration of reputation at world level in case of origin of difficulties. So, at the factory in Haiti Levi Strauss has faced a problem of non-observance of the labor law. It has catastrophically affected its reputation, and the company has incurred essential losses which have surpassed the economy received for the account of cheap labor power;

Costs necessary for decrease in risks at the international integration of business
Cost type	Example.
Administrative expenses (the control of accomplishment of works, negotiating so further)	Bear all companies bar none. On the average constitute approximately 8 % of cost of the contract
Expenses on quality control, payment of production managers and tracing of working process	Emilia Maglia (the Italian textile company) has been forced to take for work of the Italian manager that he observed of labor obtainable locally at the factories placed in Romania
Expenses on repair work and maintenance service	In case of the company of Hewlett Packard moving of system of the customer accounting to India has caused heavy expenses as it was necessary to direct the technicians for check of operation of system on places.
The expenses connected with low production of work	Company Luxoptica has established following quotations on production of one and steams of lenses: 1,2 dollars for the Chinese worker and 2,63 dollars for Italian. However low production of work of the Chinese workers, an over-expenditure of materials and other factors couldn't compensate more attractive hourly rates
The expenses connected with a local infrastructure	In India the electricity, and telecommunication not always high quality often disconnect. It assumes heavy expenses at placing in these countries of the service centers and accounting systems.
Expenses connected with local standard conditions	Labor law non-observance at factories Levi Strauss placed to Haiti, has led to catastrophic consequences for image of the company.
The expenses connected with risks of delegation of power	When Sarp has realized that thanks to subcontractors competitors use its high technologies, it has reduced quantity of the operations transferred to partners.
The expenses connected with policy risks	Political instability in some developing states won't allow to count on that degree of reliability of business which is warranted by developed countries.
The expenses connected with social risks	The decision on moving of assets British Telecom abroad has led to debate with labor unions and has caused disapproving reaction of employees that has enough cost much to the company

Adaptation of the offer of the company to specificity of the local markets. The world market only in rare instances can be perceived as uniform and homogeneous. Distinction of cultures, methods of consumption, legislative arrangements and rules forces the enterprises which want to react effectively to the demand existing in other countries, to adjust the offer for local conditions.

Besides it is necessary to conduct a clear boundary meanwhile that should be global, and that shouldn't lose local color. The main condition of success of the integrated enterprise — an embodiment in life of those processes which will allow to benefit by scale economy thanks to some standardization and personification without which not to manage at local level. So, pharmaceutical company GE has developed the Chinese version of goods. Unlike the USA, in China of 80 % ассортиментных positions GE implements at half price. Thanks to it enterprise goods so well disperses in the local market that it takes in the lead positions in the segment.

3. Virtual life of the real company

Creation of the "virtual" enterprise — other method of action in the conditions of the global market. The companies choosing this strategy, specialize on the one and only operation, and the others charge to the partners from other countries. So arrives, for example, IBM. Since 2004 it works as the integrated "virtual" enterprise which receives accessories from different suppliers (fig. 2). Ready computers are produced by the Chinese company of Lenovo, and itself IBM renders consulting services and provides technical support of decisions on the basis of these the personal computer.

Batteries. Production is entrusted to the Asian service centers under specifications IBM

The Keyboard It is produced in Thailand

Drawing 2. IBM as "virtual" production.

The success of strategy of the "virtual" enterprise is provided with following factors:

- The company superiority in a certain type of activity. "The virtual" enterprise which intends to specialize on the one and only operation, should carry out it much better other partners (tab. 2). So, the success of the company of Apple in a case with iPod is based first of all on its skill in the field of design. And the most part of other works is charged those partners which are considered competent of the областях:Toshiba delivers a hard disk, ARM — the processor, Sharp — memory, and all it the Taiwan company Inventec.Takoj collects together the approach has allowed Apple in record term (between concept development iPod and the beginning of its sales has passed only one year) to create absolutely new product, and with rather competitive price;

Table 2. Examples of specialization of the "virtual" enterprises.
Industry	A company example	Specialization
Information	Intel Microsoft Dell IBM	Creation of microprocessors. Software development. Assemblage of accessories and sale of the personal computer. Services (consultation, logistics and so on).
Shoe	Nike	Research, product development, marketing.
Textile	Benetton	Design and goods quality control.

- Creation of an essential part of cost of a product. Specialization on one type of activity is profitable only in the event that the business dealing model provides the companies strong position among other participants of process. For example, the Intel specializes on microprocessors, having released from itself from the obligations connected with other stages of creation of technics as which she considers less attractive. But the company isn't content with skill enhancement in the area. She tries to keep a strong position among designers and to cool desire of manufacturers of the personal computer to pass to cooperation with other suppliers of microprocessors;

Observance of the precautionary measures warning a leakage of a know-how. As the company should position itself as the specialist in one area, there is a necessity of close interaction with other participants of a chain so, and risk of that the know-how will be seen by potential competitors or there will be a leakage of the important information. That is why Sharp has refused the subcontractor in production of liquid crystal screens though thus it was possible to save considerable means. And for this reason Airbus in 2006 has changed the strategy: more careful analysis has allowed to specify strategically important parts of a design of the plane, which production the company has reserved, having transferred release of the others to subcontractors.

4. The contractor sounds is proud

In connection with increase in quantity of the companies specializing on one type of activity, there are the contract markets which value grows day by day. In new conditions contractors manage to protect better the incomes of pressure of clients. For example, results of one of recent researches of Reuters agency have shown that some little-known Asian contractors have appeared more profitable, than known marks on which they work. And in a case with Barbie it was unexpectedly found out that at manufacturers completing (hair, clothes and etc.) a recoupment above, than at the American distributors who are engaged in sale of dolls.

Possibility to position as contractor is a strategic choice for which it is necessary to show consideration. The chief goal — not to get to dependence on the clients in the future. Key drivers of success in case of a choice of this strategy are that:

Portfolio diversification of clients. The income of commercial structure shouldn't depend on a small amount of clients. Company-contractor Fang Brothers has well understood it. In spite of the fact that its main client — the American corporation Liz Claiborne — has offered it an exclusive privilege on servicing of the production complexes scattered worldwide, Fang Brothers invests the incomes in building of new factories to render the service also to other clients.

A variety of clients allows to reduce the risks connected with sharp changes in the market. The contractor, unconditionally, will provide to itself steady position if will work on some large companies concerning one industry, and to produce for them a wide range of products;