International Business Strategy: Reflective Journal Assignment

This individual learning journal provides a comprehensive overview of international business strategy, analyzing four key theories and their practical applications. The journal begins by exploring the concept of First Mover Advantage, exemplified by Rolls-Royce's success in the aircraft engine market. It then delves into the Global Value Chain and the localization of the value chain, using Audi's strategy in China as a case study. The journal also examines how local firms in emerging economies respond to MNE actions, focusing on Panasonic's adaptation to the Chinese market. Finally, it addresses Disruptive Innovation, illustrating GE Healthcare's commitment to affordable technological solutions. Each theory is clearly explained and connected to relevant case studies, providing a well-rounded understanding of the subject matter.

Running head: INTERNATIONAL BUSINESS STRATEGY
INTERNATIONAL BUSINESS STRATEGY
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Theory 1: First Mover Advantage
First mover advantage is a product or a service by an organization that takes the
advantage of being first in the market. This is an advantage to the company as it helps the
organization to establish strong brand recognition and gain customer loyalty before the
competitors enter the market. Other advantages of first mover advantage are that the company
gets additional time to perfectionalize its products and services and set up a market price from
the new product (Markides and Sosa 2013). The company Rolls-Royce embraces globalization
which has lead to the company success and raised questions about the future of manufacturing in
Britain. Rolls Royce introduced an environment friendly engine and has helped the company to
stand out from the sluggish British manufacturing. The company today is best known for making
plan engines.
Theory 2: The Global Value chain and localization of value chain
The global value chain revolves around the concept of involving people and activities
involved in the process of production, its supply and distribution, the activities must be co-
coordinated across the geographies (De Backer and Miroudot 2014). The concept of value chain
is used to analyze the international and global trade in the value chains. It involves designing,
sourcing raw materials, marketing, distribution and supporting the final consumers (Low 2013).
In relation with Audi, when the company entered china, it faces fierce competition from its
competitors. To counter the increasing competition, Audi started to localize the whole value
chain, which became its competitive strategy. The company then retained its strategy of making

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high quality vehicles and enhanced its competitive strengths, the key to which was ‘localization
of whole value chain’.
Theory 3: How local firms in Emerging Economies respond to MNE actions
Panasonic faced encountered various issues in China, there had been slow growth rate,
and there have been protests to suspend the company’s operations in China temporarily.
However, through its constant efforts the company bridged two major strategies that is finding a
competitive advantage through its expertise in its worldwide operations, and the other strategy
was to keep its focus to meet the needs and requirements of the local people in china. The
company developed a deeper understanding of the consumer’s lifestyles in the market. This was
a never centre for the company new approach to china and initiated globalization. Panasonic
effort has tailored its offered products in the Chinese market.
Theory 4: Disruptive innovation
GE healthcare is committed to work healthier through the development of its innovative
and affordable technological solutions. The company accelerates innovation for an affordable
healthcare. The company firmly believes that better ideas, new concepts, innovations will
enhance the benefits of the healthcare ecosystem (Christensen et al. 2015). It initiated disruptive
innovations that would lower the costs, improve the quality of services provided and increase
accessibility. GE healthcare specifically designed to improve the efficiency of the clinics in the
operating room and offers high quality imaging. The company is dedicated in improving the
patient experience which is an important innovation area for the GE healthcare.

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References
Christensen, C.M., Raynor, M.E. and McDonald, R., 2015. What is disruptive
innovation. Harvard Business Review, 93(12), pp.44-53.
De Backer, K. and Miroudot, S., 2014. Mapping global value chains.
Low, P., 2013. The role of services in global value chains. Global value chains in a changing
world (Hong Kong, China, pp.61-81.
Markides, C. and Sosa, L., 2013. Pioneering and first mover advantages: the importance of
business models. Long Range Planning, 46(4-5), pp.325-334.