Competition and Strategic Rivalries
Multinational corporations have a workforce, presence, and operations in multiple countries. International expansion is one way corporations attempt to gain a competitive advantage over other companies in their industry. To learn more about how companies expand across borders, read this section.
Glossary
- competition
- Business actions a firm undertakes to attract customers to its products and away from competitors' products.
- competitive advantage
- When a firm successfully attracts more customers, earns more profit, or returns more value to its shareholders than rival firms do.
- cost-leadership strategy
- A generic business-level strategy in which a firm tightly controls costs throughout its value chain activities in order to offer customers low-priced goods and services at a profit.
- differentiation strategy
- A generic business-level strategy in which firms add value to their products and services in order to attract customers who are willing to pay a higher price.
- focus strategy
- A generic business-level competitive strategy that firms use in combination with either a cost-leadership or differentiation strategy in order to target a smaller demographic or geographic market with specialized products or services.
- generic business-level strategies
- Basic methods of organizing firm value chain activities to compete in a product market that can be used by any sized firm in any industry.
- strategic group
- Businesses offering similar products or services and following the same generic competitive strategy.
- strategy
- Process of planning and implementing actions that will lead to success in competition.