Globalization Drivers

 

Industry Globalization What is a global industry? Why?  

Which drivers/factors most important?



How does a global global industry  industry industry compare with a multi-domestic  one? one?



How is the extent of globalization measured!?



What are the implications for firms" international strategies?

 

 

Globalization #rivers 

$ar%et #rivers



&ost #rivers  Government #rivers 

&ompetitive #rivers

High

'ow Multi-domestic

 

Global

 

$ar%et Globalization #rivers  &ommon customer needs 

Global customers

Global mar%et channels  (r (ransferable ansferable mar%eting mar%etin g mar% eting 



$easures) 

* of WW sales attributed to standardized products

 

 

+trength of $ar%et #riversAircraft Computers Automobiles Soft Drinks Toothpaste Retail Banking Book Publishing

Beer

Baked Goods

'ow Multidomestic

 

High

Global

 

&ost Globalization #rivers 

Global scale economies



+ourcing efficiencies



,actor of production differences  High product development costs 

apidly changing technology



$easures) 

* of WW mar%et needed to achieve $.+  

 

+trength of &ost #riversPharmaceuticals Aircraft Computers Automobiles Toothpaste Retail Banking Baked Goods Soft Drinks

'ow

Multidomestic

 

High

Global

 

Government Globalization #rivers 

nrestrictive trade and investment policies



&ompatible technical standards  &ommon mar%eting regulations 

$easures) 

* of countries that possess uniform or mutually- recognized technical standards  

 

Toothpaste +trength of Government #rivers Baked Goods Soft Drinks Computers Automobiles Pharmaceuticals Airlines Retail Banking

'ow

Multidomestic

 

!nternet Commerce Geneticall" engineered foods

High

Global

 

&ompetitive Globalization #rivers 

High two-way trade / cross-border ,#I  Global competitors 

Interdependence among countries 

0olicy 'in% 



(rade/Investment ent 'in%  (rade/Investm



$anagement 'in% 



$easures) 

* of WW mar%et attributed to imports/exports



ma * of WW mar%et r%et attributed to top 1-2 firms mar%et

 

 

+trength of &ompetitive #rivers Aircraft Pharmaceuticals Computers Toothpaste Automobiles Soft Drinks Retail Banking Baked Goods

'ow

Multidomestic

 

High

Global

 

Industry Globalization and +trategy $ultidomestic 4ased on Interest #uplicate 3ctivities (ailored Independent/ mar%et-by-mar%et

'ever    $ar%et 0articipation   3ctivity 'ocation   $ar%eting

Global 0ursuit of Global +hare ,ollow Global #river 

+tandardize Interrelated/

  &ompetitive   $oves

&oordinated

 

4eer Industry and Globalization $ultidomestic

#river 

$ar%et &ost Government Government &ompetitive

Global

 

$obile 0hone Industry and Globalization $ultidomestic

#river 

$ar%et &ost Government Government &ompetitive

Global

 

$anaged Healthcare Industry and Globalization $ultidomestic

#river 

$ar%et &ost Government Government &ompetitive

Global