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My usual first session on International Marketing
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I woke up this morning and fixed myself a cup of coffee made by a Swiss company taking milk from a Korean fridge. I watched the news briefly on a British channel on
a Japanese TV set. I shaved with an American shaving gel and splashed on an after shave made in France, distributed by an American company under the license of another Swiss company. I also shampooed my hair using a shampoo made in
Thailand. I then checked for messages on my phone (made in China for a Canadian company). Before leaving for here, I quickly paid my satellite TV
subscription (of partly Australian origin) with a credit card of a Dutch bank on an American laptop. I drove to work in a car made in Korea listening to music from a
Jamaican.
Welcome to Global Welcome to Global MarketingMarketing
Two centuries of sweeping changesTwo centuries of sweeping changes
In the 1800s , all products used were manufactured within a In the 1800s , all products used were manufactured within a few miles few miles
Great Britain actively involved in international trade in the Great Britain actively involved in international trade in the mid 19 th centurymid 19 th century
Since,WWII rapid expansion into global marketsSince,WWII rapid expansion into global markets
Why Global? Realize their commercial potentialWhy Global? Realize their commercial potential
Why Global? Survival…..Why Global? Survival…..
Global MarketingGlobal Marketing
Is it different from “regular” marketing?Is it different from “regular” marketing?
Marketing : Series of Activities leading to an exchange Marketing : Series of Activities leading to an exchange
Organization’s efforts to satisfy customer wants and needs Organization’s efforts to satisfy customer wants and needs with products and services with competitive valuewith products and services with competitive value
Marketing Mix: Marketer’s primary toolsMarketing Mix: Marketer’s primary tools
Marketing is an universal disciplineMarketing is an universal discipline
Global MarketingGlobal Marketing
Focus on Global markets and opportunitiesFocus on Global markets and opportunities
Scope of activities is differentScope of activities is different
Universal marketing guidelines should be combined with Universal marketing guidelines should be combined with specific concepts,considerations and strategies to ensure specific concepts,considerations and strategies to ensure successsuccess
Marketing…An Universal DisciplineMarketing…An Universal Discipline
Marketing: Focusing on resources and objectives of an Marketing: Focusing on resources and objectives of an organization on environemental opportunities and threatsorganization on environemental opportunities and threats
Set of concepts,tools, theories,practices and procedures, Set of concepts,tools, theories,practices and procedures, and experiencesand experiences
Teachable and Learnable body of knowledgeTeachable and Learnable body of knowledge
Marketing practice varies from country to countryMarketing practice varies from country to country
The Marketing ConceptThe Marketing Concept
Shift of focus from the product to the consumer in the 60sShift of focus from the product to the consumer in the 60s
The strategic Concept of Marketing evolved in the 1990sThe strategic Concept of Marketing evolved in the 1990s
Knowing the customer in a contextKnowing the customer in a context
From profits to stakeholders benefitsFrom profits to stakeholders benefits
From profit maximization to managing strategic From profit maximization to managing strategic relationshipsrelationships
Positioning the firm in the value chain Positioning the firm in the value chain
The Infosys Sustainability Report 2008The Infosys Sustainability Report 2008
Communication channels with key stakeholdersCommunication channels with key stakeholders
Customers: Customer Satisfaction SurveysCustomers: Customer Satisfaction Surveys Annual Customer Leadership MeetsAnnual Customer Leadership Meets Employees: Employee Satisfacion SurveysEmployees: Employee Satisfacion Surveys Inclusivity SurveyInclusivity Survey Infosys Women Inclusivity CouncilsInfosys Women Inclusivity Councils CEO-Employee ColumnCEO-Employee Column Local Communities: Site VisitsLocal Communities: Site Visits Interactions with NGOsInteractions with NGOs Investors: Annual meetsInvestors: Annual meets Suppliers: Vendor SurveysSuppliers: Vendor Surveys Government: Membership in key Government bodiesGovernment: Membership in key Government bodies Education: Global Internship Programs/FellowshipsEducation: Global Internship Programs/Fellowships
Boundaryless MarketingBoundaryless Marketing
Marketing
Customer Needs and Wants R & D Engineering Mfg CV
Three Principles of Marketing Three Principles of Marketing
Customer ValueCustomer Value
Competitive or Differential AdvantageCompetitive or Differential Advantage
FocusFocus
Customer ValueCustomer Value
Value(V)= B(Benefits)/P(Price)Value(V)= B(Benefits)/P(Price)
Task is to create better customer value than competitorsTask is to create better customer value than competitors
Cos with cost advatage: Price competitive weaponCos with cost advatage: Price competitive weapon
Knowledge of Customer+ Innovation & Creativiity can lead Knowledge of Customer+ Innovation & Creativiity can lead to offerings of superior customer valueto offerings of superior customer value
SAP empowers midisized cos deliver superior CVSAP empowers midisized cos deliver superior CV
SAP Business All-in-One Solution adds new CRM SAP Business All-in-One Solution adds new CRM functionalityfunctionality
Delivers key CRM capabilties to marketing sales and Delivers key CRM capabilties to marketing sales and services with ability to analyze resultsservices with ability to analyze results
Enables companies to generate more sales leads,close Enables companies to generate more sales leads,close more deals and provide better service and supportmore deals and provide better service and support
Competitive or Differential AdvantageCompetitive or Differential Advantage
CA: Total offer that is is more attractive to customers vis-à-CA: Total offer that is is more attractive to customers vis-à-vis competitorsvis competitors
Could come from any element of the offerCould come from any element of the offer ProductProduct PricePrice PromotionPromotion DistributionDistribution
Design…a competitive advantageDesign…a competitive advantage
Unicorn Industrial Sewing Machines Company in ChinaUnicorn Industrial Sewing Machines Company in China
Makes Sewing Machines for Consumers and Industrial UsersMakes Sewing Machines for Consumers and Industrial Users
Design…..a competitive advantageDesign…..a competitive advantage
Industrial sewing machines can have over 1000 precision Industrial sewing machines can have over 1000 precision parts and assembliesparts and assemblies
Uses Autodesk Invention software to make product desgn Uses Autodesk Invention software to make product desgn more efficient and reduce design cycle time and potential more efficient and reduce design cycle time and potential errorserrors
Makes it possible even for new engineers to design in a Makes it possible even for new engineers to design in a third of the timethird of the time
FocusFocus
Required to succeed in the task of creating Customer Value Required to succeed in the task of creating Customer Value at a competitive advantageat a competitive advantage
Concentrating resources or efforts on consumer needs and Concentrating resources or efforts on consumer needs and wantswants
How to deliver a product that will meet those needs and How to deliver a product that will meet those needs and wantswants
Global Marketing: What it is and what it is not?Global Marketing: What it is and what it is not?
Markets and customers are different from country to Markets and customers are different from country to countrycountry
Marketing practices must varyMarketing practices must vary
Experiences not directly applicable from country to countryExperiences not directly applicable from country to country
Kellogg Breakfast cerealsKellogg Breakfast cereals
The Global Marketing ControversyThe Global Marketing Controversy
Prof. Theodore Levitt in HBR 1983 “Globalization of Prof. Theodore Levitt in HBR 1983 “Globalization of Markets”Markets”
““Homogenous Global Village”Homogenous Global Village”
High Quality, world productsHigh Quality, world products
Market around world using standardized advetising,pricing Market around world using standardized advetising,pricing and distributionand distribution
Major failuresMajor failures
Coca Cola….A major global Marketing SuccessCoca Cola….A major global Marketing Success
Success not based on standardization of marketing mix Success not based on standardization of marketing mix elementselements
Global LocalizationGlobal Localization
Think Global, Act LocalThink Global, Act Local
Combination of standard(actual product itself) and Combination of standard(actual product itself) and nonstandard( distribution or packaging)nonstandard( distribution or packaging)
Group Danone……A truly Global companyGroup Danone……A truly Global company
Revenues of Euro 15.22 Billion in 2008Revenues of Euro 15.22 Billion in 2008
World’s No. 1 in Fresh Dairy ProductsWorld’s No. 1 in Fresh Dairy Products World’s No. 2 in Bottled WaterWorld’s No. 2 in Bottled Water World’s No. 2 in BiscuitsWorld’s No. 2 in Biscuits
Group DanoneGroup Danone
Presence in 120 countriesPresence in 120 countries
40% Revenues from outside Europe40% Revenues from outside Europe
Key to Danone’s success: extensive knowledge of local Key to Danone’s success: extensive knowledge of local marketmarket
Focus: Innovation and local market autonomyFocus: Innovation and local market autonomy
Group’s Identity “Worldwide business with local presence”Group’s Identity “Worldwide business with local presence”
Group DanoneGroup Danone
Priority: Develop a strong brand that reflect consumer Priority: Develop a strong brand that reflect consumer needs in that market as closely as possibleneeds in that market as closely as possible
Danone: seen as French in FranceDanone: seen as French in France Spanish in SpainSpanish in Spain Mexican in MexicoMexican in Mexico Dannon in AmericaDannon in America
In Argentina, fresh dairy brand Le Serenissiree 65% market In Argentina, fresh dairy brand Le Serenissiree 65% market shareshare
Group DanoneGroup Danone
Most new product ideas come from specific needs in a Most new product ideas come from specific needs in a countrycountry
Usually tested in the countryUsually tested in the country
Drinking yoghurt Actimel first tested in BelgiumDrinking yoghurt Actimel first tested in Belgium
Juice brand Dano first tested in FranceJuice brand Dano first tested in France
If product works,local office takes and adapts itIf product works,local office takes and adapts it
Role of HQ: For each pdt, the pureness of the conceptRole of HQ: For each pdt, the pureness of the concept
Group DanoneGroup Danone
Local office: can adapt to individual markets,encouraged toLocal office: can adapt to individual markets,encouraged to
Some change advertising,some change nameSome change advertising,some change name
Some opt for sweeter tasting yoghurt,some will have Some opt for sweeter tasting yoghurt,some will have simpler packagingssimpler packagings
Global MarketingGlobal Marketing
No imposition of a standardised approachNo imposition of a standardised approach
Does not mean entering every market in the worldDoes not mean entering every market in the world
Means widening business horizons to encompass the world Means widening business horizons to encompass the world when scanning for opportunities and threatswhen scanning for opportunities and threats
Decision to enter markets will depend on several factors Decision to enter markets will depend on several factors like resources,managerial mind-set and nature of like resources,managerial mind-set and nature of opportunities and threatsopportunities and threats
Nokia-A Global marketing successNokia-A Global marketing success
World’s largest handset manufacturerWorld’s largest handset manufacturer
In 2005, Nokia was loosing market share and share price In 2005, Nokia was loosing market share and share price was dippingwas dipping
Missed the “mobile-as-fashion statement” trendMissed the “mobile-as-fashion statement” trend
Slow to take advantage of this trend in developed worldSlow to take advantage of this trend in developed world
Concentrated on building business in developing Concentrated on building business in developing world(India,China,Indonesia)world(India,China,Indonesia)
Different requirement:Basic,reliable hardwareDifferent requirement:Basic,reliable hardware
Nokia-A Global Marketing SuccessNokia-A Global Marketing Success
Global Market share jumped to 40% in 2007Global Market share jumped to 40% in 2007
China market share: 35%China market share: 35%
Trusted,but not trendy in the USATrusted,but not trendy in the USA
US Cellphone market difficult to growUS Cellphone market difficult to grow
Driven by cell-service carriers,like Verizon,AT & TDriven by cell-service carriers,like Verizon,AT & T
Phones sold at subsidized rates,works only with their Phones sold at subsidized rates,works only with their serviceservice
Nokia-A Global Marketing successNokia-A Global Marketing success
Europe: Nokia leaderEurope: Nokia leader
USA leaders: Samsung, Motorola and PalmUSA leaders: Samsung, Motorola and Palm
USA: consumers driven by emerging technologyUSA: consumers driven by emerging technology
No right productsNo right products
Corrected by launch of two new products: E Series and N Corrected by launch of two new products: E Series and N SeriesSeries
E Series: corporate E-mail usersE Series: corporate E-mail users
N Series: Multimedia capabiltiesN Series: Multimedia capabilties
NokiaNokia
E 90: closer to laptopE 90: closer to laptop
Some models: Big and Untrendy in USA but seen as Some models: Big and Untrendy in USA but seen as strength in some marketsstrength in some markets
Old,Flat brick phones:Out of fashion in USA,status symbol in Old,Flat brick phones:Out of fashion in USA,status symbol in JakartaJakarta
Trend laggard,but enormous level of trust from consumers Trend laggard,but enormous level of trust from consumers in Asia and Europein Asia and Europe
Wide View of the WorldWide View of the World
LVMH Moet Hennessey Louis Vouitton-A Global LVMH Moet Hennessey Louis Vouitton-A Global Marketing SuccessMarketing Success
World’s largest luxury products manufacturerWorld’s largest luxury products manufacturer
LVMH…LVMH…
Enduring status symbol around the worldEnduring status symbol around the world
Major threats: CounterfeitingMajor threats: Counterfeiting Brand DilutionBrand Dilution
Growth Markets: China and IndiaGrowth Markets: China and India
China: set up in 92China: set up in 92
Todat,LVMH China’s leading luxury brandTodat,LVMH China’s leading luxury brand
4 stores: Nanjing,Beijing,Tiajin and Shenyang4 stores: Nanjing,Beijing,Tiajin and Shenyang
3 Stores in India: 2 in Delhi and 1 in Mumbai3 Stores in India: 2 in Delhi and 1 in Mumbai
LVMH in JapanLVMH in Japan
Japanese customer: great eye for detailJapanese customer: great eye for detail
Powerful appeal of French quality and savoir fairePowerful appeal of French quality and savoir faire
Respect tradition yet future facingRespect tradition yet future facing
54 Stores in Japan54 Stores in Japan
Store Architecture integral part of brand identityStore Architecture integral part of brand identity
Instore experience as important as the productInstore experience as important as the product
LVMH in Japan-the Omotendo Building in TokyoLVMH in Japan-the Omotendo Building in Tokyo
LVMH in Japan…the Omotendo BuildingLVMH in Japan…the Omotendo Building
The Importance of Global MarketsThe Importance of Global Markets
Largest Market in the world: USA: 25%Largest Market in the world: USA: 25%
Second largest Market: Japan: 15%Second largest Market: Japan: 15%
Largest European Market: Germany: 8%Largest European Market: Germany: 8%
Rise of the global corporationRise of the global corporation
Inefficient companies will disappearInefficient companies will disappear
The World’s largest companiesThe World’s largest companiesRankRank CompanyCompany CountryCountry Revenues($ Revenues($
mill)mill)Profit($ mill)Profit($ mill)
1.1. Royal Dutch Royal Dutch ShellShell
NetherlandsNetherlands 453,500453,500 51,34051,340
2.2. Exxon-MobilExxon-Mobil USAUSA 442,851442,851 45,22045,220
3.3. Wal-MartWal-Mart USAUSA 405,607405,607 13,40013,400
4.4. BPBP UKUK 367,053367,053 35,23535,235
5.5. ChevronChevron USAUSA 263,159263,159 23,93123,931
6.6. Total SATotal SA FranceFrance 259,171259,171 20,10220,102
7. 7. Conoco Conoco PhilipsPhilips
USAUSA 230,764230,764 -16,998-16,998
8.8. ING GroupING Group NetherlandsNetherlands
9.9. SinopecSinopec ChinaChina 205,514205,514 22,34522,345
10.10. Toyota MotorsToyota Motors JapanJapan 203,260203,260 -4,560-4,560
Management OrientationsManagement Orientations
Co’s responses depends on management’s assumption or Co’s responses depends on management’s assumption or beliefsbeliefs
EthnocentricEthnocentric
PolycentricPolycentric
Regiocentric Regiocentric
GeocentricGeocentric
Ethnocentric OrientationEthnocentric Orientation
Home country is superiorHome country is superior
Sees similarities in foreign countriesSees similarities in foreign countries
Assumption is: successful products in home countries can Assumption is: successful products in home countries can be sold anywhere without adaptationbe sold anywhere without adaptation
Foreign operations viewed as secondary or subordinateForeign operations viewed as secondary or subordinate
Assumption is HQ knowledge and capabilties applicable Assumption is HQ knowledge and capabilties applicable anywhereanywhere
For mfg cos, foreign markets means of disposal of surplusFor mfg cos, foreign markets means of disposal of surplus
Ethnocentric OrientationEthnocentric Orientation
No systematic marketing research outside home countryNo systematic marketing research outside home country
No major modification in productNo major modification in product
Differerences in consumer needs ignoredDiffererences in consumer needs ignored
Ethnocentrism big internal threatEthnocentrism big internal threat
Polycentric OrientationPolycentric Orientation
Belief that each country is uniqueBelief that each country is unique
Each subsidiary develops its unique business and marketing Each subsidiary develops its unique business and marketing strategiesstrategies
Called a Called a Multinational CompanyMultinational Company
GE in KoreaGE in Korea
GE Capital,financing armGE Capital,financing arm
Started with fully owned subsidiary in KoreaStarted with fully owned subsidiary in Korea
For six years,tried to market auto,personal loans and For six years,tried to market auto,personal loans and leasing of office equipmentsleasing of office equipments
Negligible market shareNegligible market share
Folded ops of its two subsidiaries in 2004 into two Folded ops of its two subsidiaries in 2004 into two subsidiaries of Hyundai Motors-Hyundai Capital(car subsidiaries of Hyundai Motors-Hyundai Capital(car financing arm) and Hyundai Card(credit card arm)financing arm) and Hyundai Card(credit card arm)
GE in KoreaGE in Korea
Since 2004, invested $ 3 billion in these two subsidiariesSince 2004, invested $ 3 billion in these two subsidiaries
Owns 43% of the sharesOwns 43% of the shares
GE’s biggest minority investments in the worldGE’s biggest minority investments in the world
Now, among GE’s most profitable investmentsNow, among GE’s most profitable investments
Model for GE’s marketing and branding strategies Model for GE’s marketing and branding strategies worldwideworldwide
Before Hyundai, GE strongly preferrred management Before Hyundai, GE strongly preferrred management control in JVscontrol in JVs
GE in KoreaGE in Korea
GE success in Korea led to similar decisions……25.4% of GE success in Korea led to similar decisions……25.4% of Bank of Ayudha in ThailandBank of Ayudha in Thailand
Hyundai had 75% of the Korean auto marketHyundai had 75% of the Korean auto market
Korean operations provide 5.1% of GE’s worldwide profits of Korean operations provide 5.1% of GE’s worldwide profits of the consumer fianncing businessthe consumer fianncing business
GE: moving from ethnocentricity to polycentricityGE: moving from ethnocentricity to polycentricity
Regiocentric OrientationRegiocentric Orientation
Regions as UniqueRegions as Unique
Intergrated Regional StrategyIntergrated Regional Strategy
US company focusing on the NAFTA countriesUS company focusing on the NAFTA countries
European company focusing on EU or EuropeEuropean company focusing on EU or Europe
Geocentric OrientationGeocentric Orientation
Entire world as potential marketEntire world as potential market
Integrated world marketing strategyIntegrated world marketing strategy
““Worldview”: similarities and differences in markets and Worldview”: similarities and differences in markets and countriescountries
Global strategy fully responsive to local needs and wantsGlobal strategy fully responsive to local needs and wants
Ford and the World carFord and the World car
Modelled after the BMW world car the 3 Series Sports Modelled after the BMW world car the 3 Series Sports SedanSedan
Ford and the World CarFord and the World Car
Ford planning the “world car”Ford planning the “world car”
Simple premise “ Building one product for multiple Simple premise “ Building one product for multiple markets”markets”
Basic belief: To make money on smalll cars, development Basic belief: To make money on smalll cars, development and other costs to be spread over one huge global marketand other costs to be spread over one huge global market
First test: the subcompact FiestaFirst test: the subcompact Fiesta
Fiesta selling well in Europe and Asia, to debut in the USA Fiesta selling well in Europe and Asia, to debut in the USA early 2010early 2010
Ford and the World CarFord and the World Car
Risky strategy, failures earlierRisky strategy, failures earlier
Potential for huge profitsPotential for huge profits
Regional divisions disagreementRegional divisions disagreement
CEO has organized the company around the world carCEO has organized the company around the world car
Global version of other models plannedGlobal version of other models planned
Ford and the World CarFord and the World Car
Potential savings: upto $ 700 million per modelPotential savings: upto $ 700 million per model
Plus factor: European and US tastes seem to be convergingPlus factor: European and US tastes seem to be converging
Midsize sedans earlier much smaller in EU than USA,now Midsize sedans earlier much smaller in EU than USA,now almost comparablealmost comparable
Tastes to a degree is globalizingTastes to a degree is globalizing
The Inspiration…the BMW 3 Series Sports SedanThe Inspiration…the BMW 3 Series Sports Sedan
Virtually the same in every marketVirtually the same in every market
Secret of success” Show consumers what the next big thing Secret of success” Show consumers what the next big thing is,not relect what they know now”is,not relect what they know now”
Ubiquity engenders trust while design creates inspirationUbiquity engenders trust while design creates inspiration
The ResearchThe Research
Ford researched small car buyers…owners of VW in Ford researched small car buyers…owners of VW in EU,Honda in USA and Toyota in ChinaEU,Honda in USA and Toyota in China
Consumer: Aged 20-30Consumer: Aged 20-30 Limited fundsLimited funds Big apetite for fashion and designBig apetite for fashion and design
Imaginary Global archetype customer: IsabellaImaginary Global archetype customer: Isabella
Recent college graduate living near MilanRecent college graduate living near Milan
Creative,thinking about pursuing journalismCreative,thinking about pursuing journalism
Isabella…..Isabella…..
Modest earner,likes city livingModest earner,likes city living
Fashionable,very much in social mediaFashionable,very much in social media
Customer Clinics conducted all around the worldCustomer Clinics conducted all around the world
Isabell’s personality traits,aspirations and sensibilties and Isabell’s personality traits,aspirations and sensibilties and what she wants resonated around the worldwhat she wants resonated around the world
What worked for BMW, will it work for Ford???????What worked for BMW, will it work for Ford???????
Factors driving Global Integration and MarketingFactors driving Global Integration and Marketing
TechnologyTechnology
Truly statelessTruly stateless
No cultural boundariesNo cultural boundaries
Soon available everywhere in the worldSoon available everywhere in the world
Regional Economic AgreementsRegional Economic Agreements
NAFTA(North Atlantic Free Trade NAFTA(North Atlantic Free Trade Agreement)Agreement)
WTO (World Trade Organization)WTO (World Trade Organization)
EU (European Union)EU (European Union)
Market Needs and WantsMarket Needs and Wants
Cultural universals and differencesCultural universals and differences
Common elements in human nature: Basis for Common elements in human nature: Basis for creating global marketscreating global markets
Converging consumer needs and wantsConverging consumer needs and wants
Top global brands built on fulfilling universal Top global brands built on fulfilling universal needs…..basic appeal are globalneeds…..basic appeal are global
The Top Global BrandsThe Top Global Brands
Transportation and Communication ImprovementsTransportation and Communication Improvements
Time and cost barriers with distance has fallen dramaticallyTime and cost barriers with distance has fallen dramatically
Physical distribution costs and time has reducedPhysical distribution costs and time has reduced
Product Development CostsProduct Development Costs
New products: Major investments and long periods of New products: Major investments and long periods of development timedevelopment time
Pfizer R&D Budget: $ 7 Billion AnnuallyPfizer R&D Budget: $ 7 Billion Annually
Product Development costsProduct Development costs
High Product Development costs must be High Product Development costs must be recovered in global marketplacerecovered in global marketplace
No single national market likely to be large No single national market likely to be large enoughenough
QualityQuality
Global Marketing Strategies generates greater Global Marketing Strategies generates greater revenue,greater margins and larger investments revenue,greater margins and larger investments in product design and qualityin product design and quality
Global companies “raise the bar”Global companies “raise the bar”
Uniformity drives down research,engg,design and Uniformity drives down research,engg,design and production costproduction cost
World Economic TrendsWorld Economic Trends
Economic Growth resulted in market Economic Growth resulted in market opportunitiesopportunities
India: Fertile Ground for long-term sustainable growthIndia: Fertile Ground for long-term sustainable growth
India: A “guaranteed- to-happen” success story: Between India: A “guaranteed- to-happen” success story: Between ’92-93 to 2005-2006, average growth rate: 6.2%’92-93 to 2005-2006, average growth rate: 6.2%
India : Young People,virgin market: 400 Million people India : Young People,virgin market: 400 Million people below 21 and 20 Million new babies every yearbelow 21 and 20 Million new babies every year
World Economic TrendsWorld Economic Trends
Reduced resistance to entry of foreign Reduced resistance to entry of foreign firmsfirms
Worldwide movement towards Worldwide movement towards deregulation and privatizationderegulation and privatization
Leverages....Experience transferLeverages....Experience transfer
Can leverage its experienceCan leverage its experience in any market in the world:in any market in the world:
Management PracticesManagement Practices
StrategiesStrategies
ProductsProducts
Advertising AppealsAdvertising Appeals
Sales IdeasSales Ideas
Promotional IdeasPromotional Ideas
Leverages…..Scale EconomiesLeverages…..Scale Economies
Advantage of greater manufacturing Advantage of greater manufacturing volumes to obtain economies of scalevolumes to obtain economies of scale
Finished products can be produced by Finished products can be produced by combining components manufactured by combining components manufactured by scale-sufficient plants in different countriesscale-sufficient plants in different countries
Scale EconomiesScale Economies
Buying….Levers “Global procurement Officer”Buying….Levers “Global procurement Officer”
ManufacturingManufacturing
MarketingMarketing
Research & DevelopmentResearch & Development
LogisticsLogistics
Resource UtilizationResource Utilization
Ability to scan the world to identify people.money and raw Ability to scan the world to identify people.money and raw materials that will enable it to compete efficiently in world materials that will enable it to compete efficiently in world marketsmarkets
Indiabulls real Estate raised $ 533 million from Indiabulls real Estate raised $ 533 million from FIIs(Fidelity,HSBC,TPG and Moor Capital) in May 2009FIIs(Fidelity,HSBC,TPG and Moor Capital) in May 2009
Global StrategyGlobal Strategy
Greatest single advantageGreatest single advantage
Based on info system that scans the whole world Based on info system that scans the whole world to identify opportunities,trends,threats and to identify opportunities,trends,threats and resourcesresources
Once opportunities are identified,leverages its Once opportunities are identified,leverages its skills and focuses its resources to create superior skills and focuses its resources to create superior customer value and achieve competitive customer value and achieve competitive advantageadvantage
Design to create winning effort on a global scaleDesign to create winning effort on a global scale
The Global/Transnational CorporationThe Global/Transnational Corporation
Any Business Enterprise that pursues global business Any Business Enterprise that pursues global business objectives by linking objectives by linking world resourcesworld resources to to world market world market opportunitiesopportunities
Within the Within the international financial frameworkinternational financial framework
Under the umbrella of Under the umbrella of global peaceglobal peace
Advantage of expanding Advantage of expanding communication technologiescommunication technologies
Serve needs and wants on global scaleServe needs and wants on global scale
Restraining ForcesRestraining Forces
Management MyopiaManagement Myopia and and Organizational CultureOrganizational Culture
Essential to combine global vision and Essential to combine global vision and perspective with local market initiative perspective with local market initiative and inputand input
National Controls and BarriersNational Controls and Barriers
Protectionist forcesProtectionist forces
Control over Control over market acessmarket acess and and entryentry
Control over advertisingControl over advertising
Nontariff BarriersNontariff Barriers
Only solution: Become Only solution: Become “insiders” “insiders” in every countryin every country
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