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Amar KJR Nayak/IB/XIMB

Amar KJR Nayak/IB/XIMB. The Globalization of Markets. Theodore Levitt Key Concerns: How to customize products for the demands of new markets? Differences in culture and values among nations (Month of Ramadan, Bank Lending rates, etc.). Amar KJR Nayak/IB/XIMB.

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Amar KJR Nayak/IB/XIMB

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  1. Amar KJR Nayak/IB/XIMB The Globalization of Markets Theodore Levitt Key Concerns: How to customize products for the demands of new markets? Differences in culture and values among nations (Month of Ramadan, Bank Lending rates, etc.)

  2. Amar KJR Nayak/IB/XIMB Differences in tastes of people in different regions / nations Customization of goods / services for different market segments Different character of people and companies under the influence of new technology

  3. Amar KJR Nayak/IB/XIMB Vindication of Model T General Rule! Lower the cost and price Improve the quality & reliability Henry Ford – Production of Model T Need for Global imagination

  4. Amar KJR Nayak/IB/XIMB Strategic issues Knowing a lot about many things v/s knowing everything about one great thing  Give customers what he says he wants or what he can take  Lower cost international product – patronage expands exponentially

  5. Amar KJR Nayak/IB/XIMB Global Corporation accepts and adjusts to the differences only reluctantly, after relentlessly testing their immutability, and after trying in various ways to circumvent and reshape them

  6. Amar KJR Nayak/IB/XIMB Summary Converging commonality Developments in technology From customizing items to offering globally standardized products Only Global companies will achieve long-term success by Concentrating on what everyone wants rather than Cater to details of what everyone thinks they might like

  7. Amar KJR Nayak/IB/XIMB A strategy!! Offer everyone simultaneously high-quality, more or less standardized products at optimally low prices Samsung’s (Washing Machines, Refrigerators, TVs, etc)

  8. Amar KJR Nayak/IB/XIMB A strategy!! Examples? Global Corporations will seek sensibly to force suitably standardized products and practices on the entire globe!!

  9. Prof. Amar KJR Nayak Global Production Strategies Factors that influence international production Trade Restrictions Import duties Exchange Rates

  10. Prof. Amar KJR Nayak Opportunity for international businesses to specialize and integrate manufacturing plants US Companies in W. Europe in 1970s A process of rationalization & International value addition Nissan, Seimens, Ford Motors

  11. Prof. Amar KJR Nayak International Division of Labor Production of standardized products moving to low cost regions Ex.: Chemicals, Drugs, Automobiles, Textiles, etc Critical functions like R&D concentrating in a few advanced countries

  12. Production Cost Reduction Methods India, US, Japan

  13. Prof. Amar KJR Nayak Production Cost Reduction Methods Global Bench Marks

  14. Prof. Amar KJR Nayak Four production strategies Global concentrated production Host market production Product specialization for a global or regional market Transnational vertical integration of production

  15. Business Strategy European – Merchandize: ColonizationAmerican – Technology: IPLCJapanese – Mass Production (M&S, T&H)

  16. Case Analysis

  17. Case of Matsushita

  18. The Transformation

  19. Amar KJR Nayak/IB/XIMB A case of home videocassette recorders (VCRs)

  20. Amar KJR Nayak/IB/XIMB

  21. How did this happen?

  22. Summary:Strategic Moves

  23. Amar KJR Nayak/IB/XIMB Strategic Moves of Matsushita Group Complement Strengths in Product Development /Mass Production Managerial Attitude to work with Partners Make the video cassette players (VCP) compatible with Video Cassette recorders Respond to Market Demand (play duration of VCP)

  24. Amar KJR Nayak/IB/XIMB Standardize and promote the production of VHS formatted cassettes Collaborate with video rental shops to promote VHS cassette players Tie-up with other players in the value chain of the product both in the in home market and foreign markets  Standardize product through increased production and increased sales in home and overseas markets: Critical Volume to Market Standardization

  25. Is the Strategy applicable to you?

  26. Business Strategy – SummaryEuropean – Merchandize: ColonizationAmerican – Technology: IPLCJapanese – Mass Production (M&S, T&H)Asian & Indian- ?

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