Global Competitive Analysis

GLOBAL COMPETITIVE

ANALYSISPRESENTED BY JILL CHARPIA, DBA STUDENT

TABLE OF CONTENTS• INTRODUCTION• COMPETITOR ANALYSIS• COMPETITOR RIVALRY• HOW LOCAL FIRMS IN EMERGING ECONOMIES RESPOND TO MULTINATIONALS• DEBEERS COMPETITOR ANALYSIS• DEFENDERS MARKET STRATEGY• FIGHTING LOW COST RIVALS• GLOBAL COMPETITIVENESS• COMPETE OR COOPERATE• CONCLUSION• REFERENCES

INTRODUCTIONCORPORATIONS MUST EVALUATE THE INTERNATIONAL BUSINESS ENVIRONMENT FOR POTENTIAL COMPETITORS TO EFFECTIVELY MOVE INTO THE INTERNATIONAL REALM. THE PHILOSOPHY UTILIZED HEREIN BELONGS TO SUN TZU:

NOT ONLY KNOW “YOURSELF” BUT ALSO “YOUR OPPONENTS” (PENG, 2014)

COMPETITOR ANALYSIS•ANALYSIS BETWEEN A PAIR OF RIVALS• FRAMEWORK•MARKET COMMONALITY •RESOURCE SIMILARITY• EXAMPLE: THE BIG THREE NEW CHANNELS AND CNN

COMPETITOR RIVALRY EXAMPLE•THE COMPETITION THE BIG THREE & CNN•CUSTOMER ACQUISITION COSTS• TIME WARNER’S REJECTION •CHANGE IN NORMS AND THE BEGINNING OF INTENSE

COMPETITION

HOW LOCAL FIRMS IN EMERGING ECONOMIES RESPOND TO MULTINATIONALS•INDUSTRY PRESSURES TO GLOBALIZE •COMPETITIVE ANALYSIS•DEFENDER• EXTENDER•DODGER •CONTENDER

DEBEERS COMPETITOR ANALYSIS•WORLD’S LEADING SUPPLIER OF DIAMONDS•SCARCITY CONCEPT•CONTENDER STRATEGY

(WELDON, 2014)

DEFENDER MARKET STRATEGY•INCREASED REGULATIONS•GOVERNMENTAL REGULATORY AGENCY INVOLVEMENT•PRICE VOLATILITY •TENDER SALES ARE OPENED TO SMALLER DIAMOND

MANUFACTURERS (SHOR, 2014)

GLOBAL COMPETITIVENESS •ECONOMIC PERFORMANCE •GLOBAL INNOVATION •GLOBAL FINANCIAL PERFORMANCE •RESEARCH AND DEVELOPMENT SPENDING•PATENT AND FILING STATISTICS•EDUCATION TRENDS•SCHOLARLY RESEARCH BIBLIOMETRICS

(CAMLEK, 2012)

LOW COST RIVALS •ESTABLISHED BUSINESS CHALLENGE•AVOID LOW COST PRICE MATCH• FOCUS ON HIGHLY DIFFERENTIATED GOODS•DEVELOP ON BRAND LOYALTY

(BERMAN, 2015)

COMPETE OR COOPERATE•COMPETITIVE STRATEGIES• LOW-COST PRICE STRATEGIES• LONG-TERM WAIT AND WATCH TIME PERIOD• PRICE PREMIUM BASED

•COOPERATE•SOUTHWEST AIRLINES•WAL-MART

DIFFERENTIATING STRATEGY•MULTINATIONAL ENTERPRISE SELECTION FOR ANALYSIS• TARGET CORPORATION•DIFFERENTIATING TACTIC• PREMIUM PRICING

SIGNALING•SIGNALING COOPERATION• “WINKING”

•EFFECTIVENESS OF SIGNALS• INDIRECT TALK• LEGALITY

CONCLUSION• TABLE OF CONTENTS• INTRODUCTION• COMPETITOR ANALYSIS• COMPETITOR RIVALRY• HOW LOCAL FIRMS IN EMERGING ECONOMIES RESPOND TO MULTINATIONALS• DEBEERS COMPETITOR ANALYSIS• DEFENDERS MARKET STRATEGY• FIGHTING LOW COST RIVALS• GLOBAL COMPETITIVENESS• COMPETE OR COOPERATE

REFERENCESBerman, B. (2015). How to compete effectively against low-cost competitors. Business Horizons, 5887-97. doi:10.1016/

j.bushor.2014.09.002

Camlek, V. (2012). Measuring global competition. Information Services & Use, 32(1/2), 25-42

Peng, M. W. (2014). Global Strategy (3rd ed.). Mason, OH: South-Western

Sagiv, L., Sverdlik, N., & Schwarz, N. (2011). To compete or to cooperate? Values' impact on perception and action in social dilemma games. European Journal of Social Psychology, 41(1), 64-77 14p.doi:10.1002/ejsp.729

Shor, R. (2014). Rough diamond auctions: sweeping changes in pricing and distribution. Gems & Gemology, 50(4), 252-267

Weldon R., Shor R. (2014) Botswana’s scintillating moment. G&G, Vol. 50, No. 2, pp. 96–113, doi.org/10.5741/GEMS.50.2.96