designing a global strategy
TRANSCRIPT
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Designing a Global strategyDesigning a Global strategy
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OutlineOutline
1. Framework of Global Strategy
2. Benefits of Positioning as Standardized
Global Niche Differentiator
3. Competitive Advantages Required to be
Standardized Global Niche Differentiator
4. Examples
5. Bibliography
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1.Framework of Global strategy1.Framework of Global strategy
GlobalStrategic
Ambition
GlobalStrategic
Positioning
Global
BusinessSystem
GlobalOrganization
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Global Strategic AmbitionGlobal Strategic Ambition
y Relates to the role the company want to play inthe world market place
y Five types of Roles:
1. Global Player: establish a sustainable competitiveposition in the key regions of the world
2. Regional Player: competitive advantage in one of the regions
3. Regional Dominant Player: capture competitive
advantage in one region4. Global Exporter: sells across the key markets
5. Global operator: operates in various regions butcaters to its domestic market
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GlobalGlobal Strategic PositioningStrategic Positioning
y Two Specific choices:
1. Choice of Countries: Where the company
wants to compete and what role does this
play in global country portfolio2. Value Propositions: Relates to the product
and service of the company and the type of
segment it wants to cater to
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GlobalGlobal Business SystemBusiness System
y The value chain of the company is spread
and integrated across the world
y The three core areas of value chain
include
1. Innovative activities: R&D/Knowledge
2. Productive activities: procurement
/manufacturing3. Customer Relationship activities:
marketing/sales
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GlobalGlobal OrganizationOrganization
y Organization choice is dependent on the
nature of the competitive context
y Phases of Global development include:
1. Early Export
2. Early Multinational subsidiaries
3. Full multinational
4. Global
5. Global Multi business
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Global OrganizationGlobal Organization
y Organization dimension cover
Structure
System
Culture
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2.Standardized Global Niche2.Standardized Global Niche
DifferentiatorDifferentiator
DifferentiatedProduct/Service
Cater to aNiche segment
Standardized
Product/service
Standardized
Global Niche
differentiator
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Benefits of Standardized GlobalBenefits of Standardized Global
Niche DifferentiatorNiche DifferentiatorA) Competitive advantage across the Globe
B) Production standardization
C) Marketing/Advertising has global
standardization
D) Distributor/Supplier relationship
E) Customer Relationship Management
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A)CompetitiveA)Competitive advantage across theadvantage across the
GlobeGlobey Differentiated product to a particular
segment almost nullifies the competition
y Develops better ability to keep a watch
on new entrants or existing competitors
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Competition analysis throughCompetition analysis through
Porter`s Five Forces ModelPorter`s Five Forces Model
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Competition analysis throughCompetition analysis through
Porter`s Five Forces ModelPorter`s Five Forces Modely Potential Threats It is minimized due to nature of product and
market
y Suppliers Long term relationship leads to greater level of
integrated work
a few substitutes available to supplies
our product is most effective or unique
y Buyers Buyers are not price sensitive
y Substitutes Very few substitutes available
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B)Production standardizationB)Production standardization
y Products are standardized thereforeproduction can be standardized
y Production value chain can be connected
across the globe for cost benefitsy Production can occur at regional centers and
sales can be done in all countries within theregion because of niche segmentation
y Standardization means technologicaladvantages can be shared in productionprocess across the globe
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C)C) Marketing/Advertising has globalMarketing/Advertising has global
standardizationstandardizationy Marketing/advertising can have a global
outlook
y Global outlook leads to same or similar
information across the globe which
results in more effectiveness
y One Brand Ambassador/Image means
recurring impact on customers
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D)D) Distributor/Supplier relationshipDistributor/Supplier relationship
y Products can have stable
distributor/supplier chain
y Long term relationships can be
established for better sales efforts
y Supplier loyalty can be achieved in the
long run
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E)E) Customer RelationshipCustomer Relationship
ManagementManagementy The result of Global
standardization,differentiaion and nichemarket special relationship with
customers can be buildy Customers whether in one region or
another they can always relate to theproduct
y Better Customer relationship results inability to cater to customer`s dynamicchoices
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3.3. Competitive Advantages Required toCompetitive Advantages Required to
be Standardized Global Nichebe Standardized Global NicheDifferentiatorDifferentiator
y Superior Technology/quality
y Innovative Design
y Customer Relationship
y High quality service
y Brand Image
y Networking of value Chain
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Sources of the CompetitiveSources of the Competitive
AdvantageAdvantagey Resource Based
Access to unique raw materials
y Assets based
Owning Proprietary process technology
Patents
y Competencies based
Superior Research and Development
Superior bundle know how
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ExamplesExamples
y Mckinsey&Company
Provide consulting solution across the globe
Have niche in terms of consulting
Cater to Businesses across the world
y Omega Watches
y NVIDIA
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BibliographyBibliography
y Lasserre, Philippe. Global Strategic
Management. Palgrave Macmillan, 2007.
y Porter, Michael E. "The Five Competitive
Forces that Shape Strategy." Harvard
Business Review (2008): 86.
y McKinsey & Co website
y NVIDIA website
y Omega website