Designing a Global Strategy

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Designing a Global strategyDesigning a Global strategy



OutlineOutline

1. Framework of Global Strategy

2. Benefits of Positioning as Standardized

Global Niche Differentiator

3. Competitive Advantages Required to be

Standardized Global Niche Differentiator

4. Examples

5. Bibliography



1.Framework of Global strategy1.Framework of Global strategy

GlobalStrategic

Ambition

GlobalStrategic

Positioning

Global

BusinessSystem

GlobalOrganization



Global Strategic AmbitionGlobal Strategic Ambition

y Relates to the role the company want to play inthe world market place

y Five types of Roles:

1. Global Player: establish a sustainable competitiveposition in the key regions of the world

2. Regional Player: competitive advantage in one of the regions

3. Regional Dominant Player: capture competitive

advantage in one region4. Global Exporter: sells across the key markets

5. Global operator: operates in various regions butcaters to its domestic market



GlobalGlobal Strategic PositioningStrategic Positioning

y Two Specific choices:

1. Choice of Countries: Where the company

wants to compete and what role does this

play in global country portfolio2. Value Propositions: Relates to the product

and service of the company and the type of

segment it wants to cater to



GlobalGlobal Business SystemBusiness System

y The value chain of the company is spread

and integrated across the world

y The three core areas of value chain

include

1. Innovative activities: R&D/Knowledge

2. Productive activities: procurement

/manufacturing3. Customer Relationship activities:

marketing/sales



GlobalGlobal OrganizationOrganization

y Organization choice is dependent on the

nature of the competitive context

y Phases of Global development include:

1. Early Export

2. Early Multinational subsidiaries

3. Full multinational

4. Global

5. Global Multi business



Global OrganizationGlobal Organization

y Organization dimension cover

Structure

System

Culture



2.Standardized Global Niche2.Standardized Global Niche

DifferentiatorDifferentiator

DifferentiatedProduct/Service

Cater to aNiche segment

Standardized

Product/service

Standardized

Global Niche

differentiator



Benefits of Standardized GlobalBenefits of Standardized Global

Niche DifferentiatorNiche DifferentiatorA) Competitive advantage across the Globe

B) Production standardization

C) Marketing/Advertising has global

standardization

D) Distributor/Supplier relationship

E) Customer Relationship Management



A)CompetitiveA)Competitive advantage across theadvantage across the

GlobeGlobey Differentiated product to a particular

segment almost nullifies the competition

y Develops better ability to keep a watch

on new entrants or existing competitors



Competition analysis throughCompetition analysis through

Porter`s Five Forces ModelPorter`s Five Forces Model



Competition analysis throughCompetition analysis through

Porter`s Five Forces ModelPorter`s Five Forces Modely Potential Threats It is minimized due to nature of product and

market

y Suppliers Long term relationship leads to greater level of

integrated work

a few substitutes available to supplies

our product is most effective or unique

y Buyers Buyers are not price sensitive

y Substitutes Very few substitutes available



B)Production standardizationB)Production standardization

y Products are standardized thereforeproduction can be standardized

y Production value chain can be connected

across the globe for cost benefitsy Production can occur at regional centers and

sales can be done in all countries within theregion because of niche segmentation

y Standardization means technologicaladvantages can be shared in productionprocess across the globe



C)C) Marketing/Advertising has globalMarketing/Advertising has global

standardizationstandardizationy Marketing/advertising can have a global

outlook

y Global outlook leads to same or similar

information across the globe which

results in more effectiveness

y One Brand Ambassador/Image means

recurring impact on customers



D)D) Distributor/Supplier relationshipDistributor/Supplier relationship

y Products can have stable

distributor/supplier chain

y Long term relationships can be

established for better sales efforts

y Supplier loyalty can be achieved in the

long run



E)E) Customer RelationshipCustomer Relationship

ManagementManagementy The result of Global

standardization,differentiaion and nichemarket special relationship with

customers can be buildy Customers whether in one region or

another they can always relate to theproduct

y Better Customer relationship results inability to cater to customer`s dynamicchoices



3.3. Competitive Advantages Required toCompetitive Advantages Required to

be Standardized Global Nichebe Standardized Global NicheDifferentiatorDifferentiator

y Superior Technology/quality

y Innovative Design

y Customer Relationship

y High quality service

y Brand Image

y Networking of value Chain



Sources of the CompetitiveSources of the Competitive

AdvantageAdvantagey Resource Based

Access to unique raw materials

y Assets based

Owning Proprietary process technology

Patents

y Competencies based

Superior Research and Development

Superior bundle know how



ExamplesExamples

y Mckinsey&Company

Provide consulting solution across the globe

Have niche in terms of consulting

Cater to Businesses across the world

y Omega Watches

y NVIDIA



BibliographyBibliography

y Lasserre, Philippe. Global Strategic

Management. Palgrave Macmillan, 2007.

y Porter, Michael E. "The Five Competitive

Forces that Shape Strategy." Harvard

Business Review (2008): 86.

y McKinsey & Co website

y NVIDIA website

y Omega website

Documents

Designing a Global Strategy