2 LEGO’s strategic drift 3 4 5 6 Table 1.1 The traditional value chain versus the service value chain Source: 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 Table 2.2 Triggers of export initiation 10 Figure IV.3 Analysis of a company’s standardization potential Source: adapted from Kreutzer (1988). Reproduced with kind permission from Emerald Group Publishing Ltd; www.emeraldinsight.com. 11 Figure 1 The CPW joint venture Environmental factors influencing the balance between standardization and adaptation Figure IV.1 13 Figure 3.1 Internationalization of the firm: an incremental (organic) approach Source: adapted from Forsgren and Johanson (1975, p. 16 ). 14 Figure 4.11 Blue ocean strategy framework Exhibit 4.3 Hotel Formule 1 – value innovation in action Source: Tony Souter/DK Images. 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