Designing a Global strategy

Outline
1. Framework of Global Strategy
2. Benefits of Positioning as Standardi
zed Global Niche Differentiator
3. Competitive Advantages Required t
o be Standardized Global Niche Dif
ferentiator
4. Examples
5. Bibliography
1.Framework of Global strat
egy

Global Global
Strategic Strategic
Ambition Positioning

Global
Global
Business
Organization
System
Global Strategic Ambition
Relates to the role the company want to play
in the world market place
Five types of Roles:
1 . Global Player: establish a sustainable competiti
ve position in the key regions of the world
2 . Regional Player: competitive advantage in one
of the regions
3 . Regional Dominant Player: capture competitive
advantage in one region
4 . Global Exporter: sells across the key markets
5 . Global operator: operates in various regions but
caters to its domestic market
Global Strategic Positioning

Two Specific choices:

1 . Choice of Countries: Where the comp
any wants to compete and what role d
oes this play in global country portfoli
o
2 . Value Propositions: Relates to the pro
duct and service of the company and
the type of segment it wants to cater t
o
Global Business System

The value chain of the company is s

pread and integrated across the wor
ld
The three core areas of value chain i
nclude
1 . Innovative activities: R&D/Knowledge
2 . Productive activities: procurement /m
anufacturing
3 . Customer Relationship activities: mar
keting/sales
Global Organization

Organization choice is dependent o

n the nature of the competitive cont
ext
Phases of Global development inclu
de:
1. Early Export
2. Early Multinational subsidiaries
3. Full multinational
4. Global
5. Global Multi business
Global Organization

Organization dimension cover

◦ Structure
◦ System
◦ Culture
 2.Standardized Global Niche Differentiator

Standardized Differentiated
Global Niche Product/Service
differentiator

Standardized
Cater to a Niche
Product/service
segment
Benefits of Standardized Global Nic
he Differentiator
A) Competitive advantage across the
Globe
B) Production standardization
C) Marketing/Advertising has global st
andardization
D) Distributor/Supplier relationship
E) Customer Relationship Managemen
t
A)Competitive advantage across the Globe

Differentiatedproduct to a particula
r segment almost nullifies the comp
etition
Develops better ability to keep a wa
tch on new entrants or existing com
petitors
Competition analysis through Porter
`s Five Forces Model
Competition analysis through Porter
`s Five Forces Model
Potential Threats
◦ It is minimized due to nature of product and market
Suppliers
◦ Long term relationship leads to greater level of inte
grated work
◦ a few substitutes available to supplies
◦ our product is most effective or unique
Buyers
◦ Buyers are not price sensitive
Substitutes
◦ Very few substitutes available
B)Production standardization

Products are standardized therefore produ

ction can be standardized
Production value chain can be connected
across the globe for cost benefits
Production can occur at regional centers a
nd sales can be done in all countries within
the region because of niche segmentation
Standardization means technological adva
ntages can be shared in production proces
s across the globe
C) Marketing/Advertising has global standardization

Marketing/advertising can have a gl

obal outlook
Global outlook leads to same or simi
lar information across the globe whi
ch results in more effectiveness
One Brand Ambassador/Image mea
ns recurring impact on customers
D) Distributor/Supplier relationship

Products can have stable distributor

/supplier chain
Long term relationships can be esta
blished for better sales efforts
Supplier loyalty can be achieved in t
he long run
E) Customer Relationship Management

The result of Global standardization,dif

ferentiaion and niche market special re
lationship with customers can be build
Customers whether in one region or an
other they can always relate to the pro
duct
Better Customer relationship results in
ability to cater to customer`s dynamic
choices
3. Competitive Advantages Required to be
Standardized Global Niche Differentiator

Superior Technology/quality
Innovative Design
Customer Relationship
High quality service
Brand Image
Networking of value Chain
Sources of the Competitive Advanta
ge
Resource Based
◦ Access to unique raw materials
Assets based
◦ Owning Proprietary process technology
◦ Patents
Competencies based
◦ Superior Research and Development
◦ Superior bundle know how
Examples
Mckinsey&Company
◦ Provide consulting solution across the g
lobe
◦ Have niche in terms of consulting
◦ Cater to Businesses across the world
Omega Watches
NVIDIA
Bibliography
Lasserre, Philippe. Global Strategic
Management. Palgrave Macmillan, 2
007.
Porter, Michael E. "The Five Compet
itive Forces that Shape Strategy." Ha
rvard Business Review (2008): 86.
 McKinsey & Co website
NVIDIA website
Omega website