Global competition suggests a drastically shortened life cycle for most products, and it no longer permits companies a polycentric, country-by-country approach to international business. If companies that have developed a new product do follow a country-by-country approach to foreign market entry over time, a globally oriented competitor will likely overcome their initial competitive advantages by blanketing the world markets with similar products in a shorter period of time.
Trend in global sourcing strategy
1.The decline of exchange rate determinism of sourcing
2.New competitive environment caused by excess worldwide capacity
3.Innovations in and restructuring of international trade infrastructure
4.Enhanced role of purchasing managers
5.Trend toward global manufacturing
p305 As mentioned in Ch1, we all have to keep in mind what Mark Twain once wrote:"If you stand still, you will get run over." In an era of global competition, companies cannot stay put or stay satisfied with their current market poistion domestically as well as internationally.
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