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Industry Globalization

Industry Globalization. What is a global industry? Why? Which drivers/factors most important? How does a global industry compare with a multi-domestic one? What are the implications for firms’ international strategies?. Globalization Drivers. Market Drivers Cost Drivers

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Industry Globalization

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  1. Industry Globalization • What is a global industry? Why? • Which drivers/factors most important? • How does a global industry compare with a multi-domestic one? • What are the implications for firms’ international strategies?

  2. Globalization Drivers • Market Drivers • Cost Drivers • Government Drivers • Competitive Drivers Low Multidomestic High Global

  3. Market Globalization Drivers • Common customer needs • Global customers • Global market channels • Transferable marketing

  4. Strength of Market Drivers Aircraft Computers Automobiles Soft Drinks Toothpaste Commercial Banking Book Publishing Baked Goods Low High Multidomestic Global

  5. Cost Globalization Drivers • Global scale economies • Sourcing efficiencies • Factor of production differences • High product development costs • Rapidly changing technology

  6. Strength of Cost Drivers Pharmaceuticals Aircraft Computers Automobiles Toothpaste Commercial Banking Baked Goods Soft Drinks Low High Multidomestic Global

  7. Government Globalization Drivers • Trade and investment policies • Compatible technical standards • Common marketing regulations

  8. positive Strength of Government Drivers ^ Toothpaste Baked Goods Soft Drinks Computers Automobiles Pharmaceuticals Airlines Commercial Banking Low High Multidomestic Global

  9. Competitive Globalization Drivers • High two-way trade • Global competitors • Interdependence among countries • Policy Link • Trade/Investment Link • Management Link

  10. Strength of Competitive Drivers Aircraft Pharmaceuticals Computers Toothpaste Automobiles Soft Drinks Commercial Banking Baked Goods Low High Multidomestic Global

  11. Driver Market Cost Government Competitive Mobile Phone Industry and Globalization Multidomestic Global

  12. Driver Market Cost Government Competitive Managed Healthcare Industry and Globalization Multidomestic Global

  13. Lever Market Participation Activity Location Marketing Competitive Moves Industry Globalization and Strategy Multidomestic Based on Interest Duplicate Activities Tailored Independent/ market-by-market Global Pursuit of Global Share Follow Global Driver Standardize Interrelated/ Coordinated

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