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Introduction and Review

Source: David Harvey, The Condition of Postmodernity(Oxford and Cambridge, Mass.: Basil Blackwell, 1989), p. 241, plate 3.1.

� People and organizations willing and able to buy� 86% of the world lives at or below poverty level

� Value orientation� What is a good value?

� Quality� Fair price� Ease of purchase

Market Penetration Strategy

Product Development Strategy

Market Development Strategy

Diversification Strategy

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� Global Industry� Competitive advantage gained by integrating and leveraging operations on a global scale

Five forces analysis can assist a company in formulating the appropriate strategy to gain a competitive advantage

Single-Country •• Target MarketTarget Market

•• Marketing MixMarketing Mix

•• ProductProduct

•• PricePrice

•• PlacePlace

•• PromotionPromotion

Global

• Global Market Participation

• Market Mix Development

• Adaptation or standardization in all four “Ps”

• Concentration

• Coordination

• Integration of competitive moves

CREATIVITY is thinking up new things. INNOVATION is doing new things.

Theodore Levitt

Kenichi OhmaeKenichi Ohmae

Global companies understand the balance of standardization and customization required in the

world’s marketplace.

Think Globally….Think Globally….

Act LocallyAct Locally

Subaru 360 and Yugo CarsSubaru 360 and Yugo Cars

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� Centralized management

� Standardized product

� Only sees similarities and ignores differences

� Views and decisions come from Domestic or Home country

� Belief in home-country superiority

� Opposite of Ethnocentric

� Often seen as MULTI-Domestic

� Very localized approach

� Aspects of the four Ps adapted for local market

� Great usage of local talent

� Companies may not build great overall brand equity

� Some dis-organization or mis-communication challenges

� No experience curve benefits

� Important geographic unit

� Integrated strategy based on regional not national market preferences

� Often align with trade alliances of political entities

� Truly global or transnational

� Global market and global supply chain networks

� Total world view

Sales outside of home country as percentage

of total sales

Assets outside home country in relation to

total assets

Ratio of employees outside of home country as a

percentage of total employment

� Trade alliances

� Common currency

� Global view

� Transportation developments

� Communication technology

� Development costs

� New markets� Post Soviet Union

� Access to resources

� Peace

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� Culture-Management Styles

� Opposition “Globalphobia”

� National Controls –trade barriers

� War

� Currency values

A tale of two nationsA tale of two nations

� March 7, 1957

� Independence from Great Britain through peaceful negotiations

� 1957

� End of the Korean Conflict and devastation from war