Introductory Session on International Marketing

I woke up this morning and fixed myself a cup of coffee made by a Swiss company taking milk from a Korean fridge. I watched the news briefly on a British channel on

a Japanese TV set. I shaved with an American shaving gel and splashed on an after shave made in France, distributed by an American company under the license of another Swiss company. I also shampooed my hair using a shampoo made in

Thailand. I then checked for messages on my phone (made in China for a Canadian company). Before leaving for here, I quickly paid my satellite TV

subscription (of partly Australian origin) with a credit card of a Dutch bank on an American laptop. I drove to work in a car made in Korea listening to music from a

Jamaican.

Welcome to Global Welcome to Global MarketingMarketing

Two centuries of sweeping changesTwo centuries of sweeping changes

In the 1800s , all products used were manufactured within a In the 1800s , all products used were manufactured within a few miles few miles

Great Britain actively involved in international trade in the Great Britain actively involved in international trade in the mid 19 th centurymid 19 th century

Since,WWII rapid expansion into global marketsSince,WWII rapid expansion into global markets

Why Global? Realize their commercial potentialWhy Global? Realize their commercial potential

Why Global? Survival…..Why Global? Survival…..

Global MarketingGlobal Marketing

Is it different from “regular” marketing?Is it different from “regular” marketing?

Marketing : Series of Activities leading to an exchange Marketing : Series of Activities leading to an exchange

Organization’s efforts to satisfy customer wants and needs Organization’s efforts to satisfy customer wants and needs with products and services with competitive valuewith products and services with competitive value

Marketing Mix: Marketer’s primary toolsMarketing Mix: Marketer’s primary tools

Marketing is an universal disciplineMarketing is an universal discipline

Global MarketingGlobal Marketing

Focus on Global markets and opportunitiesFocus on Global markets and opportunities

Scope of activities is differentScope of activities is different

Universal marketing guidelines should be combined with Universal marketing guidelines should be combined with specific concepts,considerations and strategies to ensure specific concepts,considerations and strategies to ensure successsuccess

Marketing…An Universal DisciplineMarketing…An Universal Discipline

Marketing: Focusing on resources and objectives of an Marketing: Focusing on resources and objectives of an organization on environemental opportunities and threatsorganization on environemental opportunities and threats

Set of concepts,tools, theories,practices and procedures, Set of concepts,tools, theories,practices and procedures, and experiencesand experiences

Teachable and Learnable body of knowledgeTeachable and Learnable body of knowledge

Marketing practice varies from country to countryMarketing practice varies from country to country

The Marketing ConceptThe Marketing Concept

Shift of focus from the product to the consumer in the 60sShift of focus from the product to the consumer in the 60s

The strategic Concept of Marketing evolved in the 1990sThe strategic Concept of Marketing evolved in the 1990s

Knowing the customer in a contextKnowing the customer in a context

From profits to stakeholders benefitsFrom profits to stakeholders benefits

From profit maximization to managing strategic From profit maximization to managing strategic relationshipsrelationships

Positioning the firm in the value chain Positioning the firm in the value chain

The Infosys Sustainability Report 2008The Infosys Sustainability Report 2008

Communication channels with key stakeholdersCommunication channels with key stakeholders

Customers: Customer Satisfaction SurveysCustomers: Customer Satisfaction Surveys Annual Customer Leadership MeetsAnnual Customer Leadership Meets Employees: Employee Satisfacion SurveysEmployees: Employee Satisfacion Surveys Inclusivity SurveyInclusivity Survey Infosys Women Inclusivity CouncilsInfosys Women Inclusivity Councils CEO-Employee ColumnCEO-Employee Column Local Communities: Site VisitsLocal Communities: Site Visits Interactions with NGOsInteractions with NGOs Investors: Annual meetsInvestors: Annual meets Suppliers: Vendor SurveysSuppliers: Vendor Surveys Government: Membership in key Government bodiesGovernment: Membership in key Government bodies Education: Global Internship Programs/FellowshipsEducation: Global Internship Programs/Fellowships

Boundaryless MarketingBoundaryless Marketing

Marketing

Customer Needs and Wants R & D Engineering Mfg CV

Three Principles of Marketing Three Principles of Marketing

Customer ValueCustomer Value

Competitive or Differential AdvantageCompetitive or Differential Advantage

FocusFocus

Customer ValueCustomer Value

Value(V)= B(Benefits)/P(Price)Value(V)= B(Benefits)/P(Price)

Task is to create better customer value than competitorsTask is to create better customer value than competitors

Cos with cost advatage: Price competitive weaponCos with cost advatage: Price competitive weapon

Knowledge of Customer+ Innovation & Creativiity can lead Knowledge of Customer+ Innovation & Creativiity can lead to offerings of superior customer valueto offerings of superior customer value

SAP empowers midisized cos deliver superior CVSAP empowers midisized cos deliver superior CV

SAP Business All-in-One Solution adds new CRM SAP Business All-in-One Solution adds new CRM functionalityfunctionality

Delivers key CRM capabilties to marketing sales and Delivers key CRM capabilties to marketing sales and services with ability to analyze resultsservices with ability to analyze results

Enables companies to generate more sales leads,close Enables companies to generate more sales leads,close more deals and provide better service and supportmore deals and provide better service and support

Competitive or Differential AdvantageCompetitive or Differential Advantage

CA: Total offer that is is more attractive to customers vis-à-CA: Total offer that is is more attractive to customers vis-à-vis competitorsvis competitors

Could come from any element of the offerCould come from any element of the offer ProductProduct PricePrice PromotionPromotion DistributionDistribution

Design…a competitive advantageDesign…a competitive advantage

Unicorn Industrial Sewing Machines Company in ChinaUnicorn Industrial Sewing Machines Company in China

Makes Sewing Machines for Consumers and Industrial UsersMakes Sewing Machines for Consumers and Industrial Users

Design…..a competitive advantageDesign…..a competitive advantage

Industrial sewing machines can have over 1000 precision Industrial sewing machines can have over 1000 precision parts and assembliesparts and assemblies

Uses Autodesk Invention software to make product desgn Uses Autodesk Invention software to make product desgn more efficient and reduce design cycle time and potential more efficient and reduce design cycle time and potential errorserrors

Makes it possible even for new engineers to design in a Makes it possible even for new engineers to design in a third of the timethird of the time

FocusFocus

Required to succeed in the task of creating Customer Value Required to succeed in the task of creating Customer Value at a competitive advantageat a competitive advantage

Concentrating resources or efforts on consumer needs and Concentrating resources or efforts on consumer needs and wantswants

How to deliver a product that will meet those needs and How to deliver a product that will meet those needs and wantswants

Global Marketing: What it is and what it is not?Global Marketing: What it is and what it is not?

Markets and customers are different from country to Markets and customers are different from country to countrycountry

Marketing practices must varyMarketing practices must vary

Experiences not directly applicable from country to countryExperiences not directly applicable from country to country

Kellogg Breakfast cerealsKellogg Breakfast cereals

The Global Marketing ControversyThe Global Marketing Controversy

Prof. Theodore Levitt in HBR 1983 “Globalization of Prof. Theodore Levitt in HBR 1983 “Globalization of Markets”Markets”

““Homogenous Global Village”Homogenous Global Village”

High Quality, world productsHigh Quality, world products

Market around world using standardized advetising,pricing Market around world using standardized advetising,pricing and distributionand distribution

Major failuresMajor failures

Coca Cola….A major global Marketing SuccessCoca Cola….A major global Marketing Success

Success not based on standardization of marketing mix Success not based on standardization of marketing mix elementselements

Global LocalizationGlobal Localization

Think Global, Act LocalThink Global, Act Local

Combination of standard(actual product itself) and Combination of standard(actual product itself) and nonstandard( distribution or packaging)nonstandard( distribution or packaging)

Group Danone……A truly Global companyGroup Danone……A truly Global company

Revenues of Euro 15.22 Billion in 2008Revenues of Euro 15.22 Billion in 2008

World’s No. 1 in Fresh Dairy ProductsWorld’s No. 1 in Fresh Dairy Products World’s No. 2 in Bottled WaterWorld’s No. 2 in Bottled Water World’s No. 2 in BiscuitsWorld’s No. 2 in Biscuits

Group DanoneGroup Danone

Presence in 120 countriesPresence in 120 countries

40% Revenues from outside Europe40% Revenues from outside Europe

Key to Danone’s success: extensive knowledge of local Key to Danone’s success: extensive knowledge of local marketmarket

Focus: Innovation and local market autonomyFocus: Innovation and local market autonomy

Group’s Identity “Worldwide business with local presence”Group’s Identity “Worldwide business with local presence”

Group DanoneGroup Danone

Priority: Develop a strong brand that reflect consumer Priority: Develop a strong brand that reflect consumer needs in that market as closely as possibleneeds in that market as closely as possible

Danone: seen as French in FranceDanone: seen as French in France Spanish in SpainSpanish in Spain Mexican in MexicoMexican in Mexico Dannon in AmericaDannon in America

In Argentina, fresh dairy brand Le Serenissiree 65% market In Argentina, fresh dairy brand Le Serenissiree 65% market shareshare

Group DanoneGroup Danone

Most new product ideas come from specific needs in a Most new product ideas come from specific needs in a countrycountry

Usually tested in the countryUsually tested in the country

Drinking yoghurt Actimel first tested in BelgiumDrinking yoghurt Actimel first tested in Belgium

Juice brand Dano first tested in FranceJuice brand Dano first tested in France

If product works,local office takes and adapts itIf product works,local office takes and adapts it

Role of HQ: For each pdt, the pureness of the conceptRole of HQ: For each pdt, the pureness of the concept

Group DanoneGroup Danone

Local office: can adapt to individual markets,encouraged toLocal office: can adapt to individual markets,encouraged to

Some change advertising,some change nameSome change advertising,some change name

Some opt for sweeter tasting yoghurt,some will have Some opt for sweeter tasting yoghurt,some will have simpler packagingssimpler packagings

Global MarketingGlobal Marketing

No imposition of a standardised approachNo imposition of a standardised approach

Does not mean entering every market in the worldDoes not mean entering every market in the world

Means widening business horizons to encompass the world Means widening business horizons to encompass the world when scanning for opportunities and threatswhen scanning for opportunities and threats

Decision to enter markets will depend on several factors Decision to enter markets will depend on several factors like resources,managerial mind-set and nature of like resources,managerial mind-set and nature of opportunities and threatsopportunities and threats

Nokia-A Global marketing successNokia-A Global marketing success

World’s largest handset manufacturerWorld’s largest handset manufacturer

In 2005, Nokia was loosing market share and share price In 2005, Nokia was loosing market share and share price was dippingwas dipping

Missed the “mobile-as-fashion statement” trendMissed the “mobile-as-fashion statement” trend

Slow to take advantage of this trend in developed worldSlow to take advantage of this trend in developed world

Concentrated on building business in developing Concentrated on building business in developing world(India,China,Indonesia)world(India,China,Indonesia)

Different requirement:Basic,reliable hardwareDifferent requirement:Basic,reliable hardware

Nokia-A Global Marketing SuccessNokia-A Global Marketing Success

Global Market share jumped to 40% in 2007Global Market share jumped to 40% in 2007

China market share: 35%China market share: 35%

Trusted,but not trendy in the USATrusted,but not trendy in the USA

US Cellphone market difficult to growUS Cellphone market difficult to grow

Driven by cell-service carriers,like Verizon,AT & TDriven by cell-service carriers,like Verizon,AT & T

Phones sold at subsidized rates,works only with their Phones sold at subsidized rates,works only with their serviceservice

Nokia-A Global Marketing successNokia-A Global Marketing success

Europe: Nokia leaderEurope: Nokia leader

USA leaders: Samsung, Motorola and PalmUSA leaders: Samsung, Motorola and Palm

USA: consumers driven by emerging technologyUSA: consumers driven by emerging technology

No right productsNo right products

Corrected by launch of two new products: E Series and N Corrected by launch of two new products: E Series and N SeriesSeries

E Series: corporate E-mail usersE Series: corporate E-mail users

N Series: Multimedia capabiltiesN Series: Multimedia capabilties

NokiaNokia

E 90: closer to laptopE 90: closer to laptop

Some models: Big and Untrendy in USA but seen as Some models: Big and Untrendy in USA but seen as strength in some marketsstrength in some markets

Old,Flat brick phones:Out of fashion in USA,status symbol in Old,Flat brick phones:Out of fashion in USA,status symbol in JakartaJakarta

Trend laggard,but enormous level of trust from consumers Trend laggard,but enormous level of trust from consumers in Asia and Europein Asia and Europe

Wide View of the WorldWide View of the World

LVMH Moet Hennessey Louis Vouitton-A Global LVMH Moet Hennessey Louis Vouitton-A Global Marketing SuccessMarketing Success

World’s largest luxury products manufacturerWorld’s largest luxury products manufacturer

LVMH…LVMH…

Enduring status symbol around the worldEnduring status symbol around the world

Major threats: CounterfeitingMajor threats: Counterfeiting Brand DilutionBrand Dilution

Growth Markets: China and IndiaGrowth Markets: China and India

China: set up in 92China: set up in 92

Todat,LVMH China’s leading luxury brandTodat,LVMH China’s leading luxury brand

4 stores: Nanjing,Beijing,Tiajin and Shenyang4 stores: Nanjing,Beijing,Tiajin and Shenyang

3 Stores in India: 2 in Delhi and 1 in Mumbai3 Stores in India: 2 in Delhi and 1 in Mumbai

LVMH in JapanLVMH in Japan

Japanese customer: great eye for detailJapanese customer: great eye for detail

Powerful appeal of French quality and savoir fairePowerful appeal of French quality and savoir faire

Respect tradition yet future facingRespect tradition yet future facing

54 Stores in Japan54 Stores in Japan

Store Architecture integral part of brand identityStore Architecture integral part of brand identity

Instore experience as important as the productInstore experience as important as the product

LVMH in Japan-the Omotendo Building in TokyoLVMH in Japan-the Omotendo Building in Tokyo

LVMH in Japan…the Omotendo BuildingLVMH in Japan…the Omotendo Building

The Importance of Global MarketsThe Importance of Global Markets

Largest Market in the world: USA: 25%Largest Market in the world: USA: 25%

Second largest Market: Japan: 15%Second largest Market: Japan: 15%

Largest European Market: Germany: 8%Largest European Market: Germany: 8%

Rise of the global corporationRise of the global corporation

Inefficient companies will disappearInefficient companies will disappear

The World’s largest companiesThe World’s largest companiesRankRank CompanyCompany CountryCountry Revenues($ Revenues($

mill)mill)Profit($ mill)Profit($ mill)

1.1. Royal Dutch Royal Dutch ShellShell

NetherlandsNetherlands 453,500453,500 51,34051,340

2.2. Exxon-MobilExxon-Mobil USAUSA 442,851442,851 45,22045,220

3.3. Wal-MartWal-Mart USAUSA 405,607405,607 13,40013,400

4.4. BPBP UKUK 367,053367,053 35,23535,235

5.5. ChevronChevron USAUSA 263,159263,159 23,93123,931

6.6. Total SATotal SA FranceFrance 259,171259,171 20,10220,102

7. 7. Conoco Conoco PhilipsPhilips

USAUSA 230,764230,764 -16,998-16,998

8.8. ING GroupING Group NetherlandsNetherlands

9.9. SinopecSinopec ChinaChina 205,514205,514 22,34522,345

10.10. Toyota MotorsToyota Motors JapanJapan 203,260203,260 -4,560-4,560

Management OrientationsManagement Orientations

Co’s responses depends on management’s assumption or Co’s responses depends on management’s assumption or beliefsbeliefs

EthnocentricEthnocentric

PolycentricPolycentric

Regiocentric Regiocentric

GeocentricGeocentric

Ethnocentric OrientationEthnocentric Orientation

Home country is superiorHome country is superior

Sees similarities in foreign countriesSees similarities in foreign countries

Assumption is: successful products in home countries can Assumption is: successful products in home countries can be sold anywhere without adaptationbe sold anywhere without adaptation

Foreign operations viewed as secondary or subordinateForeign operations viewed as secondary or subordinate

Assumption is HQ knowledge and capabilties applicable Assumption is HQ knowledge and capabilties applicable anywhereanywhere

For mfg cos, foreign markets means of disposal of surplusFor mfg cos, foreign markets means of disposal of surplus

Ethnocentric OrientationEthnocentric Orientation

No systematic marketing research outside home countryNo systematic marketing research outside home country

No major modification in productNo major modification in product

Differerences in consumer needs ignoredDiffererences in consumer needs ignored

Ethnocentrism big internal threatEthnocentrism big internal threat

Polycentric OrientationPolycentric Orientation

Belief that each country is uniqueBelief that each country is unique

Each subsidiary develops its unique business and marketing Each subsidiary develops its unique business and marketing strategiesstrategies

Called a Called a Multinational CompanyMultinational Company

GE in KoreaGE in Korea

GE Capital,financing armGE Capital,financing arm

Started with fully owned subsidiary in KoreaStarted with fully owned subsidiary in Korea

For six years,tried to market auto,personal loans and For six years,tried to market auto,personal loans and leasing of office equipmentsleasing of office equipments

Negligible market shareNegligible market share

Folded ops of its two subsidiaries in 2004 into two Folded ops of its two subsidiaries in 2004 into two subsidiaries of Hyundai Motors-Hyundai Capital(car subsidiaries of Hyundai Motors-Hyundai Capital(car financing arm) and Hyundai Card(credit card arm)financing arm) and Hyundai Card(credit card arm)

GE in KoreaGE in Korea

Since 2004, invested $ 3 billion in these two subsidiariesSince 2004, invested $ 3 billion in these two subsidiaries

Owns 43% of the sharesOwns 43% of the shares

GE’s biggest minority investments in the worldGE’s biggest minority investments in the world

Now, among GE’s most profitable investmentsNow, among GE’s most profitable investments

Model for GE’s marketing and branding strategies Model for GE’s marketing and branding strategies worldwideworldwide

Before Hyundai, GE strongly preferrred management Before Hyundai, GE strongly preferrred management control in JVscontrol in JVs

GE in KoreaGE in Korea

GE success in Korea led to similar decisions……25.4% of GE success in Korea led to similar decisions……25.4% of Bank of Ayudha in ThailandBank of Ayudha in Thailand

Hyundai had 75% of the Korean auto marketHyundai had 75% of the Korean auto market

Korean operations provide 5.1% of GE’s worldwide profits of Korean operations provide 5.1% of GE’s worldwide profits of the consumer fianncing businessthe consumer fianncing business

GE: moving from ethnocentricity to polycentricityGE: moving from ethnocentricity to polycentricity

Regiocentric OrientationRegiocentric Orientation

Regions as UniqueRegions as Unique

Intergrated Regional StrategyIntergrated Regional Strategy

US company focusing on the NAFTA countriesUS company focusing on the NAFTA countries

European company focusing on EU or EuropeEuropean company focusing on EU or Europe

Geocentric OrientationGeocentric Orientation

Entire world as potential marketEntire world as potential market

Integrated world marketing strategyIntegrated world marketing strategy

““Worldview”: similarities and differences in markets and Worldview”: similarities and differences in markets and countriescountries

Global strategy fully responsive to local needs and wantsGlobal strategy fully responsive to local needs and wants

Ford and the World carFord and the World car

Modelled after the BMW world car the 3 Series Sports Modelled after the BMW world car the 3 Series Sports SedanSedan

Ford and the World CarFord and the World Car

Ford planning the “world car”Ford planning the “world car”

Simple premise “ Building one product for multiple Simple premise “ Building one product for multiple markets”markets”

Basic belief: To make money on smalll cars, development Basic belief: To make money on smalll cars, development and other costs to be spread over one huge global marketand other costs to be spread over one huge global market

First test: the subcompact FiestaFirst test: the subcompact Fiesta

Fiesta selling well in Europe and Asia, to debut in the USA Fiesta selling well in Europe and Asia, to debut in the USA early 2010early 2010

Ford and the World CarFord and the World Car

Risky strategy, failures earlierRisky strategy, failures earlier

Potential for huge profitsPotential for huge profits

Regional divisions disagreementRegional divisions disagreement

CEO has organized the company around the world carCEO has organized the company around the world car

Global version of other models plannedGlobal version of other models planned

Ford and the World CarFord and the World Car

Potential savings: upto $ 700 million per modelPotential savings: upto $ 700 million per model

Plus factor: European and US tastes seem to be convergingPlus factor: European and US tastes seem to be converging

Midsize sedans earlier much smaller in EU than USA,now Midsize sedans earlier much smaller in EU than USA,now almost comparablealmost comparable

Tastes to a degree is globalizingTastes to a degree is globalizing

The Inspiration…the BMW 3 Series Sports SedanThe Inspiration…the BMW 3 Series Sports Sedan

Virtually the same in every marketVirtually the same in every market

Secret of success” Show consumers what the next big thing Secret of success” Show consumers what the next big thing is,not relect what they know now”is,not relect what they know now”

Ubiquity engenders trust while design creates inspirationUbiquity engenders trust while design creates inspiration

The ResearchThe Research

Ford researched small car buyers…owners of VW in Ford researched small car buyers…owners of VW in EU,Honda in USA and Toyota in ChinaEU,Honda in USA and Toyota in China

Consumer: Aged 20-30Consumer: Aged 20-30 Limited fundsLimited funds Big apetite for fashion and designBig apetite for fashion and design

Imaginary Global archetype customer: IsabellaImaginary Global archetype customer: Isabella

Recent college graduate living near MilanRecent college graduate living near Milan

Creative,thinking about pursuing journalismCreative,thinking about pursuing journalism

Isabella…..Isabella…..

Modest earner,likes city livingModest earner,likes city living

Fashionable,very much in social mediaFashionable,very much in social media

Customer Clinics conducted all around the worldCustomer Clinics conducted all around the world

Isabell’s personality traits,aspirations and sensibilties and Isabell’s personality traits,aspirations and sensibilties and what she wants resonated around the worldwhat she wants resonated around the world

What worked for BMW, will it work for Ford???????What worked for BMW, will it work for Ford???????

Factors driving Global Integration and MarketingFactors driving Global Integration and Marketing

TechnologyTechnology

Truly statelessTruly stateless

No cultural boundariesNo cultural boundaries

Soon available everywhere in the worldSoon available everywhere in the world

Regional Economic AgreementsRegional Economic Agreements

NAFTA(North Atlantic Free Trade NAFTA(North Atlantic Free Trade Agreement)Agreement)

WTO (World Trade Organization)WTO (World Trade Organization)

EU (European Union)EU (European Union)

Market Needs and WantsMarket Needs and Wants

Cultural universals and differencesCultural universals and differences

Common elements in human nature: Basis for Common elements in human nature: Basis for creating global marketscreating global markets

Converging consumer needs and wantsConverging consumer needs and wants

Top global brands built on fulfilling universal Top global brands built on fulfilling universal needs…..basic appeal are globalneeds…..basic appeal are global

The Top Global BrandsThe Top Global Brands

Transportation and Communication ImprovementsTransportation and Communication Improvements

Time and cost barriers with distance has fallen dramaticallyTime and cost barriers with distance has fallen dramatically

Physical distribution costs and time has reducedPhysical distribution costs and time has reduced

Product Development CostsProduct Development Costs

New products: Major investments and long periods of New products: Major investments and long periods of development timedevelopment time

Pfizer R&D Budget: $ 7 Billion AnnuallyPfizer R&D Budget: $ 7 Billion Annually

Product Development costsProduct Development costs

High Product Development costs must be High Product Development costs must be recovered in global marketplacerecovered in global marketplace

No single national market likely to be large No single national market likely to be large enoughenough

QualityQuality

Global Marketing Strategies generates greater Global Marketing Strategies generates greater revenue,greater margins and larger investments revenue,greater margins and larger investments in product design and qualityin product design and quality

Global companies “raise the bar”Global companies “raise the bar”

Uniformity drives down research,engg,design and Uniformity drives down research,engg,design and production costproduction cost

World Economic TrendsWorld Economic Trends

Economic Growth resulted in market Economic Growth resulted in market opportunitiesopportunities

India: Fertile Ground for long-term sustainable growthIndia: Fertile Ground for long-term sustainable growth

India: A “guaranteed- to-happen” success story: Between India: A “guaranteed- to-happen” success story: Between ’92-93 to 2005-2006, average growth rate: 6.2%’92-93 to 2005-2006, average growth rate: 6.2%

India : Young People,virgin market: 400 Million people India : Young People,virgin market: 400 Million people below 21 and 20 Million new babies every yearbelow 21 and 20 Million new babies every year

World Economic TrendsWorld Economic Trends

Reduced resistance to entry of foreign Reduced resistance to entry of foreign firmsfirms

Worldwide movement towards Worldwide movement towards deregulation and privatizationderegulation and privatization

Leverages....Experience transferLeverages....Experience transfer

Can leverage its experienceCan leverage its experience in any market in the world:in any market in the world:

Management PracticesManagement Practices

StrategiesStrategies

ProductsProducts

Advertising AppealsAdvertising Appeals

Sales IdeasSales Ideas

Promotional IdeasPromotional Ideas

Leverages…..Scale EconomiesLeverages…..Scale Economies

Advantage of greater manufacturing Advantage of greater manufacturing volumes to obtain economies of scalevolumes to obtain economies of scale

Finished products can be produced by Finished products can be produced by combining components manufactured by combining components manufactured by scale-sufficient plants in different countriesscale-sufficient plants in different countries

Scale EconomiesScale Economies

Buying….Levers “Global procurement Officer”Buying….Levers “Global procurement Officer”

ManufacturingManufacturing

MarketingMarketing

Research & DevelopmentResearch & Development

LogisticsLogistics

Resource UtilizationResource Utilization

Ability to scan the world to identify people.money and raw Ability to scan the world to identify people.money and raw materials that will enable it to compete efficiently in world materials that will enable it to compete efficiently in world marketsmarkets

Indiabulls real Estate raised $ 533 million from Indiabulls real Estate raised $ 533 million from FIIs(Fidelity,HSBC,TPG and Moor Capital) in May 2009FIIs(Fidelity,HSBC,TPG and Moor Capital) in May 2009

Global StrategyGlobal Strategy

Greatest single advantageGreatest single advantage

Based on info system that scans the whole world Based on info system that scans the whole world to identify opportunities,trends,threats and to identify opportunities,trends,threats and resourcesresources

Once opportunities are identified,leverages its Once opportunities are identified,leverages its skills and focuses its resources to create superior skills and focuses its resources to create superior customer value and achieve competitive customer value and achieve competitive advantageadvantage

Design to create winning effort on a global scaleDesign to create winning effort on a global scale

The Global/Transnational CorporationThe Global/Transnational Corporation

Any Business Enterprise that pursues global business Any Business Enterprise that pursues global business objectives by linking objectives by linking world resourcesworld resources to to world market world market opportunitiesopportunities

Within the Within the international financial frameworkinternational financial framework

Under the umbrella of Under the umbrella of global peaceglobal peace

Advantage of expanding Advantage of expanding communication technologiescommunication technologies

Serve needs and wants on global scaleServe needs and wants on global scale

Restraining ForcesRestraining Forces

Management MyopiaManagement Myopia and and Organizational CultureOrganizational Culture

Essential to combine global vision and Essential to combine global vision and perspective with local market initiative perspective with local market initiative and inputand input

National Controls and BarriersNational Controls and Barriers

Protectionist forcesProtectionist forces

Control over Control over market acessmarket acess and and entryentry

Control over advertisingControl over advertising

Nontariff BarriersNontariff Barriers

Only solution: Become Only solution: Become “insiders” “insiders” in every countryin every country