GLOBALIZATION AND INDUSTRY STRUCTURE

K.K.NARMADHA 312312631067

GLOBALIZATION
INTRODUCTION

Globalization

is a transnationalisation of world

economy and developed by corporate strategy.

Globalization is a mind set which views entire world as a single market so that corporate strategy is based on dynamics of business environment.

GLOBALIZATION
MEANING

Globalization has become a potent force owing to global integration and internationalization.

Stages of Globalization
Globalization pass through four distinct stages: Domestic business(Hindustan times) International business(NIIT) Multinational business(Ford) Global business(Nestle)

Motives/ Drivers of Globalization

Forces of globalization.

Intensity of domestic competition.

Global expansion.

Types of Globalization strategies

The type of strategy basically depends on

Extent of Cost Pressure.

Extent for pressures for local responsiveness.

Types of Globalization strategies

Types( High cost approach/ Low cost pressure )

International strategies Multinational Strategies

Types (Low cost approach/ high cost pressure)

Global Strategy

Transnational Strategies

Entry Modes

Export Entry Mode Contractual Entry Mode Investment Entry Mode

Value creation of firm

According to Porters Value chain model

Advantages

Economies of scale.

Expansion strategies.
Location economies. Experience Effects. Leveraging core competencies. Leveraging subsidiary skills.

Disadvantages

Uncertainties.

Cultural diversity.
Cost of Failures.

High costs.

Industry Structure
Defining an industrys boundaries is incomplete without an understanding of its structural attributes such

Concentration Economies of Scale.

Product Differentiation
Barriers to Entry

Tangible barriers.
Intangible barriers.

Product Differentiation

Barriers to Entry
Tangible barriers. Intangible barriers.

NATIONAL CONTEXT AND COMPETITIVE ADVANTAGE

Inspite of globalization of markets and production, successful companies in certain industries are found in specific countries. Cost and quality. Competitive position. Advanced factors. Factors of production. Competitive advantages.

INTENSITY OF RIVALRY

FACTOR DEMAND

NATIONAL COMPETITVE ADVANTAGE

LOCAL DEMAND CONDITIO NS

COMPETITIVENESS OF RELATED AND SUPPORTING INDUSTRIES

1) Advance factors of production. 2) Intense rivalry. 3) Demanding consumers. 4) Internationally competitive.

HYPER COMPETITION
Environmental Hitherto Imitate Good

uncertainity.

protected markets.

the market leader.

relationship with supplier.