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Introduction and Review
People and organizations willing and able to buy
86% of the world lives at or below poverty level
Value orientation
What is a good value?
Quality
Fair price
Ease of purchase
Source: David Harvey, The Condition of Postmodernity
(Oxford and Cambridge, Mass.: Basil Blackwell, 1989), p. 241,
plate 3.1.
Market
Penetration
Strategy
Product
Development
Strategy
Market
Development
Strategy
Diversification
Strategy
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Global Industry
Single-Country
gained by integrating and
leveraging operations on a
global scale
Five forces analysis can
assist a company in
formulating the
appropriate strategy to
gain a competitive
advantage
• Target Market
• Marketing Mix
• Product
• Price
• Place
• Promotion
Global
Competitive advantage
• Global Market
Participation
• Market Mix Development
• Adaptation or
standardization in all
four “Ps”
• Concentration
• Coordination
• Integration of
competitive moves
Kenichi Ohmae
Global companies understand the balance of
standardization and customization required in the
world’s marketplace.
CREATIVITY is thinking up new things.
INNOVATION is doing new things.
Theodore Levitt
Subaru 360 and Yugo Cars
Think Globally….
Act Locally
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Centralized management
Opposite of Ethnocentric
Standardized product
Often seen as MULTI-Domestic
Only sees similarities and
Very localized approach
ignores differences
Views and decisions come
from Domestic or Home
country
Belief in home-country
superiority
Aspects of the four Ps adapted for local market
Great usage of local talent
Companies may not build great overall brand
equity
Some dis-organization or mis-communication
challenges
No experience curve benefits
Important geographic
unit
Sales outside of home
country as percentage
of total sales
Truly global or
transnational
Integrated strategy
Global market and
based on regional not
national market
preferences
Often align with trade
alliances of political
entities
global supply chain
networks
Total world view
Ratio of employees
outside of home
country as a
percentage of total
employment
Assets outside home
country in relation to
total assets
Trade alliances
Common currency
Global view
Transportation developments
Communication technology
Development costs
New markets
Post Soviet Union
Access to resources
Peace
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A tale of two nations
Culture-Management Styles
Opposition “Globalphobia”
National Controls –trade barriers
War
Currency values
March 7, 1957
1957
Independence from Great
End of the Korean Conflict
Britain through peaceful
negotiations
and devastation from war
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