Professional Documents
Culture Documents
Strategy
Global Strategic Development
Objectives
Introduction
Introduction
Characteristics:
Advantages:
Mini-Replica Role
Mini-Replica Role
Characteristics
Mini-Replica Role
Advantages:
Mini-Replica Role
Drawbacks:
Key reason:
This approach is granted when tariff to operate in
certain countries are very high
This approach is granted when firms have to pursue
local production.
Key Characteristics:
Global Product Mandate grants subsidiaries the
power and responsibility to act beyond its market.
The subsidiaries have external oriented strategy
unlike
Mini-Replica
approach,
where
each
subsidiaries produce multiple products for different
segments
Subsidiaries have relatively great freedom to enter
an leave markets in a timely fashion
Implications:
R&D,
production,
marketing
and
strategic
management will be located at the subsidiary level
Subsidiaries following global product mandate
approach have unique control within the multinational
for certain products thus their level of global
integration are very high.
Subsidiaries are autonomous as they have high
degree of independence over strategic product
related decision
Cost leadership
Differentiation
These are called generic strategies because they are not firm
or industry dependent, they can be employed in any type of
business in any industry.
Cost Leadership
Cost Leadership
Cost Leadership
Cost Leadership
Situations:
Standardized products
Cut throat price competition
Price sensitive buyers
Less
possibilities
to
achieve
differentiation
Switching cost of buyers are low
product
Differentiation Strategy
Differentiation is aimed at the broad market that involves
the creation of a product or services that is perceived
throughout its industry as unique.
The
Focused Strategies
Differentiation Strategy
Focused Differentiation
cooperation
between
Criticism