Globalization Drivers 5n848
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Industry Globalization What is a global industry? Why? Which drivers/factors most important? How does a global industry compare with a multi-domestic one? How is the extent of globalization “measured”? What are the implications for firms’ international strategies?
Globalization Drivers Market Drivers Cost Drivers Government Drivers Competitive Drivers
Low Multi-domestic
High Global
Market Globalization Drivers Common customer needs Global customers Global market channels Transferable marketing
Measures: % of WW sales attributed to standardized products
Strength of Market Drivers Aircraft Computers Automobiles Soft Drinks Toothpaste Retail Banking Book Publishing
Beer?
Baked Goods
Low Multidomestic
High Global
Cost Globalization Drivers Global scale economies Sourcing efficiencies Factor of production differences High product development costs Rapidly changing technology
Measures: % of WW market needed to achieve MES
Strength of Cost Drivers Pharmaceuticals Aircraft Computers Automobiles Toothpaste Retail Banking Baked Goods Soft Drinks
Low Multidomestic
High Global
Government Globalization Drivers Unrestrictive trade and investment policies Compatible technical standards Common marketing regulations
Measures: % of countries that possess uniform or
mutually- recognized technical standards
Strength of Government Drivers Toothpaste Baked Goods Soft Drinks Computers Automobiles Pharmaceuticals Airlines Retail Banking
Low Multidomestic
Internet Commerce? Genetically engineered foods?
High Global
Competitive Globalization Drivers High two-way trade / cross-border FDI Global competitors Interdependence among countries
Policy Link Trade/Investment Link Management Link
Measures: % of WW market attributed to imports/exports % of WW market attributed to top 4-8 firms
Strength of Competitive Drivers Aircraft Pharmaceuticals Computers Toothpaste Automobiles Soft Drinks Retail Banking Baked Goods
Low Multidomestic
High Global
Industry Globalization and Strategy Multidomestic Based on Interest Duplicate Activities Tailored Independent/ market-by-market
Lever Market Participation Activity Location Marketing Competitive Moves
Global Pursuit of Global Share Follow Global Driver Standardize Interrelated/ Coordinated
Beer Industry and Globalization Multidomestic
Driver
Market Cost Government Competitive
Global
Mobile Phone Industry and Globalization
Multidomestic
Driver
Market Cost Government Competitive
Global
Managed Healthcare Industry and Globalization
Multidomestic
Driver
Market Cost Government Competitive
Global
Globalization Drivers Market Drivers Cost Drivers Government Drivers Competitive Drivers
Low Multi-domestic
High Global
Market Globalization Drivers Common customer needs Global customers Global market channels Transferable marketing
Measures: % of WW sales attributed to standardized products
Strength of Market Drivers Aircraft Computers Automobiles Soft Drinks Toothpaste Retail Banking Book Publishing
Beer?
Baked Goods
Low Multidomestic
High Global
Cost Globalization Drivers Global scale economies Sourcing efficiencies Factor of production differences High product development costs Rapidly changing technology
Measures: % of WW market needed to achieve MES
Strength of Cost Drivers Pharmaceuticals Aircraft Computers Automobiles Toothpaste Retail Banking Baked Goods Soft Drinks
Low Multidomestic
High Global
Government Globalization Drivers Unrestrictive trade and investment policies Compatible technical standards Common marketing regulations
Measures: % of countries that possess uniform or
mutually- recognized technical standards
Strength of Government Drivers Toothpaste Baked Goods Soft Drinks Computers Automobiles Pharmaceuticals Airlines Retail Banking
Low Multidomestic
Internet Commerce? Genetically engineered foods?
High Global
Competitive Globalization Drivers High two-way trade / cross-border FDI Global competitors Interdependence among countries
Policy Link Trade/Investment Link Management Link
Measures: % of WW market attributed to imports/exports % of WW market attributed to top 4-8 firms
Strength of Competitive Drivers Aircraft Pharmaceuticals Computers Toothpaste Automobiles Soft Drinks Retail Banking Baked Goods
Low Multidomestic
High Global
Industry Globalization and Strategy Multidomestic Based on Interest Duplicate Activities Tailored Independent/ market-by-market
Lever Market Participation Activity Location Marketing Competitive Moves
Global Pursuit of Global Share Follow Global Driver Standardize Interrelated/ Coordinated
Beer Industry and Globalization Multidomestic
Driver
Market Cost Government Competitive
Global
Mobile Phone Industry and Globalization
Multidomestic
Driver
Market Cost Government Competitive
Global
Managed Healthcare Industry and Globalization
Multidomestic
Driver
Market Cost Government Competitive
Global
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