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China Emerged—Rethinking Global Strategies
March 1, 2013
... China Emerged:Rethinking Global Strategies...
Objectives:
Discuss the opportunities and challenges of an emerged China, and new realities of the Post-Globalization Economy
Operating in the Post Globalization Economy
Comparing Emerged China (Post-Globalization ) to Traditional Globalization Strategies
Understanding the Magnitude and Impact of China Consumption
Articulate Operating Strategies for an Emerged China
Open Discussion
2
Economic expansion in Asia
Emerging power of the global consumer
Increasing demand for market relevant products is driving emerging market growth
China GDP / US GDP (1970 – 2010)Source: Wolfram/Alpha
New Realities: Operating in the Post-Globalization Economy
3
Classical Globalization Strategy:
Source: Low Labor & Operating
Costs
Stable Currency
Large Resource Pool
Strong Supply Chain Infrastructure
Market:Large & Growing
Consumer Base
Strong Currency
High Per Capita Income
Dynamic Retail Opportunities
Post-Globalization Realities:
Source: Increasing Labor &
Operating Costs
Large & Growing Consumer Base
Stable Currency
Resource Constraints
Domestic Supply Chain Investments
Market:Slowing or Negative
Growth
High Consumer & Sovereign Debt
Currency Weakness
Increasing Poverty
Maturing Retail Environment
Success in Global Emerging Markets will require a fundamental redefinition of “Source” and “Market”, and these must be address for each individual market opportunity.
Perspective: Ideas move instantaneously. Can the supply chain move as quickly?
4
New Realities of and Emerged China: Operating in the Post-Globalization Economy
China Emerged: Understanding the Magnitude and Impacts of China Consumption
5
6
Articulate Operating Strategies for an Emerged China
Address Critical Issues: Tackle head-on the challenges of China’s transition from “The World’s Factory” to “The World’s Largest Consumer Market Opportunity.
Competitive Advantage: Achieve through an integrated go-to-market strategy from across the entire supply chain (consumer insights to consumer feedback)
Speed & Agility: Accelerate speed-to-market with fresh, new product with significantly lower business risks.
Fight Complexity: Find opportunities to simplify and adapt business models for market and retail opportunities in China.
7
Operating Strategies
8
Operating Philosophy
Price Quality
Delivery Responsibility
BALANCE
9
Operating Strategies
Buyer / Seller
Tactical
Transactional
Temporary
Negotiated
Partnership
Strategic
Collaborative
Planned
Sustainable
RELATIONSHIPS
10
Operating Strategies
LEVERAGE
Simple – easy to use
Relies on your power
Single use environment
Erosion of foundations
Complicated – strategic use
Creates strength
Repeatable improvements
Builds reliable foundation
11
Operating Strategies
INNOVATION
Business Model
People
Tools
Culture
Process
Thank You!
Q & A
... China Emerged:Rethinking Global Strategies...