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China Emerged—Rethinking Global Strategies March 1, 2013

... China Emerged: Rethinking Global Strategies. China Emerged—Rethinking Global Strategies March 1, 2013. Objectives:. Discuss the opportunities and challenges of an emerged China, and new realities of the Post-Globalization Economy Operating in the Post Globalization Economy

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China Emerged—Rethinking Global Strategies March 1, 2013

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  1. ... China Emerged: Rethinking Global Strategies... China Emerged—Rethinking Global Strategies March 1, 2013

  2. Objectives: • Discuss the opportunities and challenges of an emerged China, and new realities of the Post-Globalization Economy • Operating in the Post Globalization Economy • Comparing Emerged China (Post-Globalization ) to Traditional Globalization Strategies • Understanding the Magnitude and Impact of China Consumption • Articulate Operating Strategies for an Emerged China • Open Discussion 2

  3. New Realities: Operating in the Post-Globalization Economy • Economic expansion in Asia • Emerging power of the global consumer • Increasing demand for market relevant products is driving emerging market growth China GDP / US GDP (1970 – 2010) Source: Wolfram/Alpha 3

  4. Post-Globalization Realities: Classical Globalization Strategy: Source:  Increasing Labor & Operating Costs Large & Growing Consumer Base Stable Currency Resource Constraints Domestic Supply Chain Investments Source: Low Labor & Operating Costs Stable Currency Large Resource Pool Strong Supply Chain Infrastructure Market: Slowing or Negative Growth High Consumer & Sovereign Debt Currency Weakness Increasing Poverty Maturing Retail Environment Market: Large & Growing Consumer Base Strong Currency High Per Capita Income Dynamic Retail Opportunities New Realities of and Emerged China: Operating in the Post-Globalization Economy Success in Global Emerging Markets will require a fundamental redefinition of “Source” and “Market”, and these must be address for each individual market opportunity. Perspective: Ideas move instantaneously. Can the supply chain move as quickly? 4

  5. China Emerged: Understanding the Magnitude and Impacts of China Consumption 5

  6. Articulate Operating Strategies for an Emerged China • Address Critical Issues:Tackle head-on the challenges of China’s transition from “The World’s Factory” to “The World’s Largest Consumer Market Opportunity. • Competitive Advantage: Achieve through an integrated go-to-market strategy from across the entire supply chain (consumer insights to consumer feedback) • Speed & Agility: Accelerate speed-to-market with fresh, new product with significantly lower business risks. • Fight Complexity:Find opportunities to simplify and adapt business models for market and retail opportunities in China. 6

  7. Operating Strategies 7

  8. Price Quality Delivery Operating Philosophy Responsibility BALANCE 8

  9. Buyer / Seller Partnership Tactical Strategic Negotiated Collaborative Transactional Planned Temporary Sustainable Operating Strategies RELATIONSHIPS 9

  10. Simple – easy to use Complicated – strategic use Relies on your power Creates strength Single use environment Repeatable improvements Erosion of foundations Builds reliable foundation Operating Strategies LEVERAGE 10

  11. People Business Model Tools Process Culture Operating Strategies INNOVATION 11

  12. ... China Emerged:Rethinking Global Strategies... Thank You! Q & A

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