2

3

LEGO’s strategic drift

4

5

6

Table 1.1 The traditional value chain versus the service value chainSource: based on Stabell and Fjeldstad (1998).

Entry Modes

• Least Risky– Export– License (manufacturing franchise)– Alliance (strategic alliance, joint venture)– Subsidiary – Foreign purchase

• Most Risky

9

10

Table 2.2 Triggers of export initiation

11

Figure IV.3 Analysis of a company’s standardization potentialSource: adapted from Kreutzer (1988). Reproduced with kind permission from Emerald Group Publishing Ltd; www.emeraldinsight.com.

Figure 1 The CPW joint venture

13

Figure IV.1 Environmental factors influencing the balance between standardization and adaptation

14

Figure 3.1 Internationalization of the firm: an incremental (organic) approachSource: adapted from Forsgren and Johanson (1975, p. 16 ).

Figure 4.11 Blue ocean strategy framework

Source: Tony Souter/DK Images.

Exhibit 4.3 Hotel Formule 1 – value innovation in action

Tools

• Strategic canvas

• ERRC

• Positioning Statement

• Weighted SWAT

• Perception Map

Figure 3.2 Dimensions of internationalization Source: Welch and Loustarinen (1988). Reproduced with permission from The Braybrooke Press Ltd.

Cases/Movies

• Lifestraw• Manchester United• One Cafe• Arcor• (boxes in chapters)

• Cereal• Coffee• Bajaj