Global Strategies

The alternative views of globalization

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Forbes
2014

The alternative views of globalization (cont.)

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The alternative views of globalization

(cont.)

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The alternative views of globalization

(cont.)
The drivers of
globalization
Market access
Market opportunities
Industry standards
Sourcing
Products & services
Technology
Customer
requirements

Competition
Cooperation
Distribution
Communication
Companys strategy,
business
programmes and
processes
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The alternative views of globalization

(cont.)

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Alternative strategic responses

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Alternative strategic responses

(cont.)

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Alternative strategic responses (cont.)

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Alternative strategic responses

(cont.)
Standardization and adaptation
Marketing objectives and strategies
More readily standardized

Marketing mix
Products most easily standardized
Promotion less so
Distribution and pricing difficult to standardize

Operational activities
The more operational the decision, the more likely it
will be differentiated

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Alternative strategic responses (cont.)

Continuum of standardization

Pricing
Distribution
Sales Force
Sales Promotion
Product
Image
Objectives
Strategy

Differentiation

Standardization
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Alternative strategic responses

(cont.)

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Alternative strategic responses

(cont.)
Forces driving a multi-domestic
approach
Industry standards remain diverse
Customers continue to demand locally
Being an insider remains critically
important
Global organisations are difficult to
manage
Management myopia
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Alternative strategic response (cont.)

Transnational strategies
Transnational companies aim to build
three strategic capabilities:
Global scale efficiency and
competitiveness
National level responsiveness and
flexibility
Cross-market capacity to leverage learning
on a world wide basis
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Alternative strategic response (cont.)

Transnational strategies
Simple and complex individual product and
market policies
Customer segments specific and unique to
specific market or transnational group
Working closely with firms and simultaneously
ensuring that values of company are maintained
and demonstrated to stakeholders
Maintaining / building added value in the supply
chain
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International marketing management

for global firms

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International marketing management

for global firms (cont.)
The emergence of MNEs from emerging
markets
Responding to the changing basis of
competitive advantage
Increasing global appeal by building the global
brand
Developing sustainable strategies
Creating a global presence by achieving global
reach
Management of diverse and complex activities
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International marketing management for global

firms (cont.)
Managing diverse and complex activities across a
range of often similar but often disparate markets
and cultures
Financial loss due to inappropriate investment
Damage to firms reputation
Litigation
Unexpected competitor response
Inappropriate long term partnerships or joint ventures
Damage to firms reputation

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International marekting management

for global firms (cont.)
The cornerstone of effective
management is control:
Set standards relevant to corporate goals
Measure performance against standards
Correct deviations from the plan

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International marketing management

for global firms (cont.)
What makes a good international manager
Able to cope with cognitive complexity
Understand issues from variety of complicated
perspectives

Have cultural empathy

Including sense of humility and power of active listening

Have emotional energy

Capable of adding depth and quality to interaction

Demonstrate psychological maturity

curiosity to learn, orientation to time, personal morality

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