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Competitive Strategies: Global vs. Local: © Professor Daniel F. Spulber
Competitive Strategies: Global vs. Local: © Professor Daniel F. Spulber
local
Professor Daniel F. Spulber
Global competitive strategies The G5 Platform strategy Network Strategy Intermediary strategy Entrepreneur strategy Investment strategy
UNILEVER in India Kwality Wall Hindustan Lever faces successful local competitor Gujarat Cooperative Milk Marketing Federation (GCMMF): India's largest food products marketing organization. Two million farmers in the cooperative Slogan: A taste of India PRICE: 10 rupees (20 cents): 100 milliliter Amul ice cream versus 80 milliliter Hindustan Lever Kwality Wall vanilla ice cream ADVERTISING COSTS: Amul: 1% of sales versus Hindustan Lever: 10-15% of sales on advertising
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Umbrella brands: Nestl products in the supermarket. Some products carry both global brand and local brand.
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Global platform strategy The global challenge Global market size: standardization Local differentiation: customization
Strategy: Determine best combination of global and local activities for competitive advantage
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Global platform strategy Local brand positioning of a global brand and global product
Corona sells the same beer, produced in 8 plants in Mexico, all over the world Advertising adapts to target countries: begins as a working class beer in Mexico, becomes a high quality import in most other countries. Marketing adapts to local markets Corona coordinates internationally through its subsidiaries
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12 links
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Global network strategy Partner networks: Technology standards Software licensing company Open- standard operating system First open Symbian OS phone (in 2001): Nokia 9210 Communicator About 85% market share Standard-setting network
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Advantages Rapid international growth Local ownership Local management Lower capital outlays Disadvantages Search cost of finding franchise owners overseas Costs of monitoring performance across borders Transaction costs of forming franchise contracts in other country remains
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Mitsui
Our first core competence is facilitating international trade with innovative services tailored to client needs
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Mitsui
Our second core competence is working with our global clientele to create new trade flows and new business
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Mitsui
Distributor of goods and services; Transfer agent for technology; Financier, Investor; Project organizer; Market developer; Resource developer; Well-informed consultant and business partner.
Mitsui
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http://www.mitsui.co.jp/tkabz/english/corp/index.htm
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Serve Country A
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Cargill
BP Amoco eBay
The global market maker aggregates demand across countries and aggregates supply across countries
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Investment strategy next time Summary and take-away points Coordination of competitive actions across borders key to gaining global competitive advantage