Industry Globalization What is a global industry Why
Industry Globalization What is a global industry? Why? n Which drivers/factors most important? n How does a global industry compare with a multi-domestic one? n What are the implications for firms’ international strategies? n
Globalization Drivers Market Drivers n Cost Drivers n Government Drivers n Competitive Drivers n Low High Multidomestic Global
Market Globalization Drivers Common customer needs n Global customers n Global market channels n Transferable marketing n
Strength of Market Drivers Aircraft Computers Automobiles Soft Drinks Toothpaste Commercial Banking Book Publishing Baked Goods Low Multidomestic High Global
Cost Globalization Drivers Global scale economies n Sourcing efficiencies n Factor of production differences n High product development costs n Rapidly changing technology n
Strength of Cost Drivers Pharmaceuticals Aircraft Computers Automobiles Toothpaste Commercial Banking Baked Goods Soft Drinks Low Multidomestic High Global
Government Globalization Drivers Trade and investment policies n Compatible technical standards n Common marketing regulations n
positi Strength of Government Drivers ve^ Toothpaste Baked Goods Soft Drinks Computers Automobiles Pharmaceuticals Airlines Commercial Banking Low Multidomestic High Global
Competitive Globalization Drivers High two-way trade n Global competitors n Interdependence among countries n u Policy Link u Trade/Investment Link u Management Link
Strength of Competitive Drivers Aircraft Pharmaceuticals Computers Toothpaste Automobiles Soft Drinks Commercial Banking Baked Goods Low Multidomestic High Global
Mobile Phone Industry and Globalization Multidomestic Driver Market Cost Government Competitive Global
Managed Healthcare Industry and Globalization Multidomestic Driver Market Cost Government Competitive Global
Industry Globalization and Strategy Multidomestic Based on Interest Lever Market Participation Duplicate Activities Activity Location Follow Global Driver Tailored Marketing Standardize Independent/ market-bymarket Competitive Moves Interrelated/ Coordinated Global Pursuit of Global Share
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