strategi gsm

8/20/2019 strategi gsm

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INDEX

1. The Uruguay Round Agreements

2. A Comprehensive Mode o! "o#a Competitive Dynami$s

%. "o#a #usiness gro&th mode in 'E Asia( A mar)et*driven mode

+.

,otentia 'our$es o! E$onomies o! '$ope !or -irms ,ursuing "o#a 'trategies

Tari!! and Nontari!! Trade arriers

/. Industry "o#ai0ation ,otentia

. A -rame&or) !or "o#a 'trategy

. 3o& "o#a 'trategy 4evers A$hieve "o#ai0ation ene!its

5. "o#a Competitive Moves

6. The Dimension o! Internationa 'trategy

17. Types o! Internationa 'trategy

11. Assessing Corporate "o#aity A -rame&or) !or Choi$e o! ,rodu$ts

12. A -rame&or) !or Choi$e o! Mar)ets

Aternative Modes o! Entry

1%. "reen!ied 8ersus Cross*order A$9uisition

1+. :hat Is a "o#a Mindset;

3o& a "o#a Mindset Di!!ers !rom a ,aro$hia or a Di!!used Mindset

1/. To $onvert go#a presen$e into go#a $ompetitive advantage< the =

1. Drivers o! "o#a 8aue( The 'tar -rame&or)

1. '$ope E$onomies in ,rodu$t and Mar)et15. :ord&ide Advantage( "oas and Means

16. 'trategi$ >rientation and Con!iguration o! Assets

27. Eements o! "o#a >rgani0ation

21. Desired >rgani0ation -eatures !or Types o! "eographi$ 'trategies

22. Different Corporate Approaches to Worldwide Strategy

2%. Match of Organizational and Strategic Logic

2+. 'tru$tura >ptions !or -irms ,ursuing "o#a 'trategies

25. 4o$a Responsiveness< "o#a Integration< and >rgani0ationa 'tru$ture

26.-a$tors In!uen$ing the ,ropensity o! a -irm to Enter into 'trategi$ Aian$es

%7. The IC8 De$ision Tree


2/30

The Uruguay Round Agreeents?$on$uded in "eneva< De$ 1/< 166% and signed as a de$aration in Mara)esh< Maro$$o< Apri 1/< 166+@

1. Agreements on Trade in Agri$utura ,rodu$ts< Teties< "arments and >ther

Manu!a$tured ,rodu$ts.

2. Agreements on Trade in 'ervi$es

%. Agreements on Trade*Reated Investment Measures ?TRIMs@

+. Agreements on Trade*Reated Intee$tua ,roperty Rights ?TRI,s@

Changing !aradigs

A ,oi*$entri$

Nation*state gro&th

Domesti$

,assive

An E$on*$entri$

Mar)et*driven gro&th

"o#a

Dynami$


3/30

A Comprehensive Model of Global Competitive Dynamics

Industry-based considerations Resource-based considerations

• Concentration• Industry leader • Product homogeneity

• Entry barriers• Market commonality with rivals

• Valuable abilities to attack,

deter, and retaliate• Rarity of certain assets

• Imitability of cometitive actions• !rgani"ational skills for actions• Resource similarity with rivals

Institution-based considerations

• #omestic cometition$ Primarily

cometition % antitrust olicy

• International cometition&

Primarily trade % antiduming olicy

Competitive

dynamics

'ttack % Counterattack %

Cooeration

'our$e( ,eng< 2776(2/+


4/30

"lo#al #usiness growth odel in S$ Asia%

A ar&et'dri(en odel

-oreign

investment

Regiona

integration

Eports

Mar&ets

• 3ome mar)ets• Eisting mar)ets

• Emerging mar)ets

)ost

econoies

TNC

industriaisation

'our$e( Reynods< 2772(1%


5/30

!otential Sources of $conoies of Scope for *irs !ursuing "lo#al Strategies

'our$e ( arney< 277(+5

1. To gain a$$ess to ne& $ustomers !or $urrent produ$ts or servi$es

2. To gain a$$ess to o&*$ost !a$tors o! produ$tion

%. To deveop ne& $ore $ompeten$ies

+. To everage $urrent $ore $ompeten$ies in ne& &ays

/ To manage $orporate ris)

Tariff and +ontariff Trade ,arriers

Tariffs% ta-es le(ied

on iported goods

or ser(ices

.uotas% /uantity liits

on the nu#er of products

or ser(ices that can #e

iported

+ontariff #arriers% rules0

regulations0 and policies that

increase the cost of iporting

products or ser(ices

Import duties

'uppementa duties

8aria#e evies

order evies

Countervaiing duties

8ountary 9uotas

Invountary 9uotas

Restri$ted import i$enses

Minimum import imits

Em#argoes

"overnment poi$ies

"overnment pro$urement poi$ies

"overnment*sponsored eport

su#sidies

Domesti$ assistan$e programs

Custom poi$ies

8auation systems

Tari!! $assi!i$ationsDo$umentation re9uirements

-ees

Buaity standards

,a$)aging standards

4a#eing standards

'our$e ( arney< 277(+51


6/30

M

A R 1 $ T

D

R 2 3 $ R S

COST

DR23$RS"O3$R+M$+T

DR23$RS

C O M ! $

T 2 T 2 3 $

D R 2 3

$ R S

Market Drivers

• Common $ustomer needs

• "o#a $ustomers

• "o#a $hannes

• Trans!era#e mar)eting

• 4ead $ountries

Cost Drivers

• "o#a s$ae e$onomies

• 'teep eperien$e $urve e!!e$t

• 'our$ing e!!i$ien$ies

• -avora#e ogisti$s

• Di!!eren$es in $ountry $osts?in$uding e$hange rates@

• 3igh produ$t deveopment $ost

• -ast $hanging te$hnoogy

Government Drivers

• -avora#e trade poi$ies

• Compati#e te$hni$a standards

• Common mar)eting reguations

• "overnment*o&ned $ompetitors

and $ustomers

• 3ost government $on$erns

Competitive Drivers

• 3igh eports and imports

• Competitors !rom di!!erent

$ontinents

• Interdependen$e o! $ountries

•Competitors go#ai0ed

2+DUSTR4

"LO,AL25AT2O+

!OT$+T2AL

2ndustry "lo#alization !otential

'our$e( ip< 1662(12


7/30

A *raewor& for "lo#al Strategy

,osition andResour$es

o! usiness

and ,arent Company

Industry

"o#ai0ation

Drivers

>rgani0ations

A#iity to Impement

a "o#a 'trategy

Appropriate

'etting !or "o#a

'trategy 4evers

ene!itsF

Costs o!

"o#a

'trategy

'our$e( ip< 277%(


8/30

)ow "lo#al Strategy Le(ers Achie(e "lo#alization ,enefits

,enefits

2pro(ed .uality$nhanced Custoer

!reference

'our$e( ip< 1662(27 277%( 1

Cost Reduction

In$reases voume !or

e$onomies o! s$ae.

Redu$es dupi$ation o!

deveopment e!!orts.

Redu$es pur$hasing<

produ$tion< and inventory

$osts.

Copetiti(e Le(erage

8ia eposure to demanding

$ustomers and innovative

$ompetitors.

8ia go#a avaia#iity<

go#a servi$ea#iity< and

go#a re$ognition.

Advantage o! eary entry.

,rovides more sites !or

atta$) and $ounteratta$)

hostage !or good #ehavior<

Earier or greater

$ommitment to a mar)et

than &arranted on o&n

merits.

-o$uses deveopment and

management resour$es.

Ao&s $onsumers to use

!amiiar produ$t &hie

a#road.

Ao&s organi0ations to use

same produ$t a$ross

$ountry units.

asis !or o&*$ost invasion

o! mar)ets.

>!!sets disadvantage o! o&

mar)et share.

4ess responsive to o$a

needs.

Redu$es dupi$ation o!

a$tivities.

3eps epoit e$onomies o!

s$ae.

Epoits di!!eren$es in

$ountry !a$tor $osts.

,artia $on$entration ao&s

!ei#iity versus $urren$y

$hanges and versus

#argaining parties.

-o$uses e!!ort.

Ao&s more $onsistent

9uaity $ontro.

Ao&s maintenan$e o! $ost

advantage independent o!

o$a $onditions

,rovides !ei#iity on

&here to #ase $ompetitive

advantage.

Distan$es a$tivities !rom

$ustomer.

In$reases $urren$y ris).

In$reases ris) o! $reating

$ompetitors.

More di!!i$ut

to manage vaue $hain.

Redu$es design and

produ$tion $osts o!

mar)eting programs.

-o$uses taent and resour$es.

4everages s$ar$e< good

ideas.

Rein!or$es mar)eting

messages #y eposing

$ustomer to the same mi in

di!!erent $ountries.

Redu$es adaptation to o$a

$ustomer #ehavior and

mar)eting environment

Magni!ies resour$e

avaia#e to any $ountry.

,rovides more options and

everage in atta$) and

de!en$e

4o$a $ompetitiveness may

#e sa$ri!i$ed.

Ma6or Draw#ac&s

All Le(ers incur

Coordination Costs0 !lus

"lo#al Mar&et

!articipation

"lo#al

Strategy

Le(ers

"lo#al

!roducts

"lo#al

Location

of Acti(ities

"lo#al

Mar&eting

"lo#al

Copetiti(e

Mo(es


9/30

Definition

(sing rofits from one country in which a business articiates

to subsidi"e cometitive actions in another country)

#efending against a cometitive attack in one country by coun*

tering in another country)

+imultaneous or lanned seuence in which cometitive movesare made in different countries in the same business)

Identifying actual and otential global cometitors and selecting

an overall osture * attack, avoidance, cooeration, or acuisi*

tion * for each)

'naly"ing strengths and weaknesses, oortunities and threatsfor each global cometitor in each ma-or country and develoing

a cometitive lan of action for each country*cometitor

combination)

.eing the first cometitor to make use of a articular element of

global strategy * global market articiation, global roducts,

global activity location, and global marketing)

Global Competitive Moves

' global strategy aroach to cometitive moves means integrating cometitive

moves across countries rather than making moves one country at a time)

Type of Move

Cross-country

subsidization

Counterparry

Globally coordinatedsequence of moves

Targeting of global

competitors

Developing country-competitor plans

Preemptive use of

global strategy


10/30


11/30

'our$e( ,orter ?165@ as edited #y :ort0e G :ort0e< 166(1%+.

Types of 2nternational Strategy

3igh

Coordination

of Acti(ities

4o&

3alue

Acti(ities

3igh -oreign

Investment &ith

Etensive Coordination

among 'u#sidiaries

,urest "o#a

'trategy

Country*Centered

'trategy #y

Mutinationas

&ith a Num#er o!

Domesti$ -irms

>perating in

>ny >ne Country

Eport*ased

'trategy &ith

De$entrai0ed

Mar)eting


12/30

Moderatey

attra$tiveMost

attra$tive

4east

attra$tive

Moderatey

attra$tive

4o&

4o&

3igh

3igh

$-pected !ayoffs fro "lo#alization

Re/uired

Degree

of Local

Adaptation

'our$e( "ovindaraHan G "upta< 2771(2+

A *raewor& for Choice of !roducts

Assessing Corporate "lo#ality

"lo#alization

of Capital

,ase

"lo#alization

of Corporate

Mindset

"lo#alization

of Supply

Chain

"lo#alization

of Mar&et

!resence

'our$e( "ovindaraHan G "upta< 2771(5


13/30

,hased*in

entry ?$reate

#ea$hhead

!irst@

Rapid

entry

Ignore !or

no&

>pportunisti$

entry

4o&

3igh

4o&

3igh

*ir7s A#ility to $-ploit the Mar&et

Strategic

2portance

of Mar&et

A *raewor& for Choice of Mar&ets

899:

$-ports

899:

9:

899:

Local

!roductions$-ports 3ersus Local !roduction

Degree of

Ownership

Control O(erActi(ities

!erfored in

the *oreign

Mar&et

Alternati(e Modes of $ntry

3ondas initia

entry into the

U.'. mar)et

ridgestones

a$9uisition o!

U.'. ased -irestone

Champion

Internationas

paper eports

through

independent

#ro)ers

-Cs

!ran$hisees

in India

-ord*Ma0da

"enente$h*3o!!man

4aRo$he


'our$e( "ovindaraHan G "upta< 2771(%1


14/30

"reen!ied

operations

or $ross*#order

a$9uisitions

"reen!ied

operations

Cross*#order

a$9uisitions

"reen!ied

operationsor $ross*#order

a$9uisitions

4o&

3igh

"ro&th

Mature or De$ining

3igh

Mar&et

"rowth

Rate

"reenfield 3ersus Cross',order Ac/uisition

Uni/ueness of Corporate Culture

'our$e( "ovindaraHan G "upta< 2771(%/


15/30

!arochial

Mindset

?4o& D * 3igh I@

"ol#al

Mindset

?3igh D * 3igh I@

!arochial

Mindset

?4o& D * 4o& I@

Diffused

Mindset

?3igh D * 4o& I@

Closed to

Di(ersity

Across

Cultures and

Mar&ets

)ow a "lo#al Mindset Differs fro a !arochial or a Diffused Mindset

A#le to 2ntegrate Di(ersity Across

Cultures and Mar&ets

Una#le to 2ntegrate Di(ersity Across

Cultures and Mar&ets

Open toDi(ersity

Across

Cultures and

Mar&ets

>pen to Diversity

A$ross Cutures and

Mar)ets;

A#e to Integrate

Diversity A$ross

Cutures and Mar)ets

no&edgea#e A#out

Diversity A$ross

Cutures and Mar)ets;

No

es

No

No

es

es

Lac& of

"lo#al Mindset

Lac& of

"lo#al Mindset

Lac& of

"lo#al Mindset

"lo#al Mindset

What 2s a "lo#al Mindset;


'our$e( "ovindaraHan G "upta< 2771(11%


16/30

8< Adapting to local ar&et differences ene!its ( * In$reased mar)et share

* Improved pri$e reai0ation * Neutrai0ing o$a $ompetitors

=< $-ploiting econoies of glo#al scale ene!its ( * 'preading !ied $ost over arger voume

* Redu$ing $apita and operating $osts per unit

* ,ooing go#a pur$hasing po&er over suppiers

* Creating re9uisite $riti$a mass in see$ted a$tivities

>< $-ploiting econoies of glo#al scope ene!its ( * ,roviding $oordinated servi$es to go#a $ustomers

* Mar)et po&er vis*a*vis $ompetitors

?< Tapping the ost optial locations for acti(ities and resources ene!its ( * ,er!orman$e enhan$ement

* Cost redu$tion

* Ris) redu$tion

@< Ma-iizing &nowledge transfer across locations ene!its ( * -aster produ$t and pro$ess innovation

* 4o&er $ost o! innovation

* Redu$ed ris) o! $ompetitive preemption

< !laying the glo#al chess gae

To con(ert glo#al presence into glo#al copetiti(e ad(antage0 the copany

ust pursue si- (alue creation opportunities as follows%

'our$e( "ovindaraHan G "upta< 2771(/*6%


17/30


18/30

Mapping of Global Ambition

Source: Philippe Lasserre (2012), Global Strategic Management , 3rd ed.,

New York: Palgrave ac!illa", p.3#.


19/30

$he Global Revenue Index (%&') is calculaed * aki"g he raio o+ he co!o+ sales i" he !aor world regio"s o he i"dusr* disriuio" o+ de!a"d i" h' is calculaed wih he +or!ula:

%&' - /Ix n

(cu! &n

cu! &(n-1)

)

%ood*ear: calculaio" o+ he gloal reve"ue i"de (%&')

$he Global Capability Index (%4') is calculaed i" a si!ilar wa*, u i"seaddisriuio" o+ sales, o"e akes he disriuio" o+ assets for capital-intensive ielse o+ personnel.

Source: Philippe Lasserre (2012), Global Strategic Management , 3rd ed.,

New York: Palgrave ac!illa", pp.56755.

8isriuio" o+ sale 9sia () &es o+ he ;orld ()


20/30

Scope $conoies in !roduct and Mar&et Di(ersification

Sources of Scope Economies

!roduct Di(ersification Mar&et Di(ersification

'hared physi$a assets

'hared eterna reations

'hared earning

-a$tory automation &ith !ei#iity

to produ$e mutipe produ$ts ?-ord@

Using $ommon distri#ution $hannes!or mutipe produ$ts ?'amsung@

'hared RGD in $omputer and

$ommuni$ations #usiness ?NEC@

"o#a #rand name ?No)ia@

'ervi$ing mutinationa $ustomers&ord&ide ?Citi#an)@

,ooing )no&edge deveoped in

di!!erent mar)ets ?,ro$ter G

"am#e@

'our$e( artett< "hosha G eamish< 2775(272


21/30

Worldwide Ad(antage% "oals and Means

Sources of Competitive Advantage

Strategic O#6ecti(es

A$hieving e!!i$ien$y in

$urrent operations

Managing ris)sthrough

mutinationa

!ei#iity

Innovation< earning<

and adaptation

+ational Differences Scale $conoies Scope $conoies

ene!iting !rom

di!!eren$es in !a$tor

$ostsJ&ages and

$ost o! $apita

Managing di!!erent)inds o! ris)s arising

!rom mar)et* or poi$y*

indu$ed $hanges in

$omparative advantages

o! di!!erent $ountries

4earning !rom so$ieta

di!!eren$es in

organi0ationa and

manageria pro$esses

and systems

Epanding and

epoiting potentia

s$ae e$onomies in

ea$h a$tivity

aan$ing s$ae &ithstrategi$ and

operationa

!ei#iity

ene!iting !rom

eperien$eJ$ost

redu$tion and

innovation

'haring o! investments

and $osts a$ross

mar)ets and

#usinesses

,ort!oio diversi!i$ationo! ris)s and $reation o!

options and side #ets

'hared earning a$ross

organi0ationa

$omponents in

di!!erent produ$ts<

mar)ets< or #usinesses

'our$e( artett< "hosha G eamish< 2775(27%


22/30

Strategic Orientation and Configuration of Assets and Capa#ilities in Multinational0

2nternational0 "lo#al0 and Transnational Copanies

'tategi$

orientation

Con!iguration o!

assets and

$apa#iities

Multinational 2nternational Transnational"lo#al

uiding !ei#iity to

respond to nationa

di!!eren$es through

strong< resour$e!u<

and entrepreneurianationa operations

De$entrai0ed and

nationay se!*

su!!i$ient

Epoiting parent*

$ompany )no&edge

and $apa#iities

through &ord&ide

di!!usion andadaptation

'our$es o! $ore

$ompeten$ies

$entrai0ed< others

de$entrai0ed

uiding $ost

advantages

through

$entrai0ed<

go#a*s$aeoperations

Centrai0ed

and go#ay

s$aed

Deveoping

go#a e!!i$ien$y<

!ei#iity< and

&ord&ide

earning$apa#iity

simutaneousy

Dispersed<

interdependent<

and spe$iai0ed

'our$e( artett< "hosha G eamish< 2775(27


23/30


24/30


25/30

'our$e( ip< 277%( 167

Different Corporate Approaches to Worldwide Strategy

Countries

U.'.A.

Kapan

"ermany

et$.

A C D E

usinesses

*ragented Multilocal Strategies

Countries

U.'.A.

Kapan

"ermany

et$.

A C D E

usinesses

2ntegrated Country Strategies

Countries

U.'.A.

Kapan

"ermany

et$.

A C D E

usinesses

2ntegrated Corporate "lo#al Strategy2ntegrated ,usiness "lo#al Strategies

Countries

U.'.A.

Kapan

"ermany

et$.

A C D E

usinesses


26/30

'our$e( ip< 277%( 161

Match of Organizational and Strategic Logic

Organizational Logic

Strategic Logic-ragmented "o#a

Nationa

-irms

"o#a

Integration

O p t i a

l ! o s i t i

o n s


27/30

'our$e ( artett G"hosha ?1656@ as 9uoted #y arney< 277(/7%

Decentralized federation

Coordinated federation

Centralized hu#

Transnational structure

'trategi$ and operationa de$isions are deegated to

divisions F $ountry $ompanies

>perationa de$isions are deegated to divisions F $ountry

$ompanies strategi$ de$isions are retained at $orporate

head9uarters

'trategi$ and operationa de$isions are retained at $orporatehead9uartes.

'trategi$ and operationa de$isions are deegated to those

organi0ationa entities that maimi0e responsiveness to o$a

$onditions and go#a integration

Structural Options for *irs !ursuing "lo#al Strategies


28/30

Local Responsi(eness0 "lo#al 2ntegration0 and Organizational Structure

De$entrai0ed

!ederation(The Europeans)

Transnationa

stru$ture

Coordinated

!ederation

(The Americans)

Coordinated

!ederation(The Americans)

Centrai0ed

hu#?The Kapanese@

3igh

3igh

4o&

4o&Importan$e o! "o#a Integration

I m p o r t a n $ e o ! 4 o $

a R e s p o n s i v e n e s s

'our$e ( arney< 277( /7/ $!. "rant< 2775(%5/*%56.


29/30

A< *ir Characteristics

L ,rodu$t*mar)et diversity o! !irm

L -irms si0e and resour$e position ?a#iity to mo#ii0e

resour$es independenty@

L ,rior invovement in strategi$ aian$esL Top managements attitudes to&ards strategi$ aian$es

L Corporate $uture

,< 2ndustry Characteristics

L Minimum e!!i$ient s$ae

L Convergen$e o! industries and asso$iated $osts o!

produ$t deveopment

L Importan$e o! speed o! entry into mar)et

L Cost stru$ture

L Threat o! ne& entrants

L Threat o! $ompetition !rom su#stitutes

C< $n(ironental Characteristics

L Changes in #uying patterns

L Degree o! mar)et un$ertainty

L Rate o! te$hnoogi$a $hange

L readth o! $ompeten$iesFs)isF$apa#iities

re9uired to $apitai0e on environmenta opportunities

L ,oiti$a< ega and reguatory environment

,ropensity o! -irmto Enter

into 'trategi$ Aian$es

*actors 2nfluencing the !ropensity of a *ir to $nter into Strategic Alliances

'our$e( 8aradaraHan G Cunningham< 166/( 261


30/30

21

%

%

The 2C3 Decision Tree

'TA"E 1

'TA"E 2

'TA"E %

• De$ision

Ma)ers

• :ord&ide

'trategy

• Coaition

,oiti$s

• De$ision

Contet

• Routine

Responses

• Resour$e

Constraints

• 'ta)ehoders

Asset 'pe$i!i$ity

>pportunismTa$itness o! Resour$e

Non*Core usiness

Resour$e ,reservation

Need !or Compimentary

Assets

"overnment ,oi$y

• Resour$e Type

Ta$it resour$es

,hysi$a resour$es

• Net&or) Reations Trust

>pportunism

• "o#ai0ation 'trategy

• Cutura 'imiarity

>rgani0ationa

Nationa

• Resour$e Type

• Net&or) ,osition

•

Routines• 4earning ,otentia

• Interdependen$ies

• argaining ,o&er

>&nership Ratio

Reative

Dependen$y

DEA4-AI4'

2C3

MAR1$T

WOS

MARET

-AI4URE

3IERARC3ICA4

INE--ICIENC

3IERARC3ICA4

'UCCE''

MARET

'UCCE''

CB3

$B3

C>NTRACT

-AI4'

CO+TRACT

+$"OT2AT$D

$B3 +$"OT2AT$D

Management

Contra$t

Turn*ey ,ant

-ran$hise

'uppier Contra$t

'ervi$e Contra$t

Independent EK8

Dominant EK8

'hared EK8

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