Anticipating Competitive Threats To Global Growth Strategies

Anticipating Competitive Threats to Global Growth Strategies August Jackson http://www.augustjackson.net august (at) augustjackson (dot) net

Investors Demand Growth

Yes, Even In This Environment.

Entering New Global Markets is Part of A Growth Strategy

Target Customer Segments to Sidestep Incumbent Competition

Factors of Customer Segmentation
Consumer Markets
Age
Gender
Behavioral Attributes
Income
Business Markets
Vertical Industry
Number of Employees
Distribution of Locations
Size of Locations
Headquarters
Annual Revenue
Purchasing Structure
In which segments can we leverage our strengths?

Incorporate Local Insight Into Five Forces and Game Theory to Anticipate Competitive Threats Source: Brandenberger, Adam M.; Nalebuff, Barry J. “The Right game: Use Game Theory to Shape Strategy.” Harvard Business Review July – August 1995: 33 – 47.

6-Part Strategy of Emerging Market Champions’ Success
Create Customized Products and Services
Business Models that Overcome Obstacles
Deploy the Latest Technology
Smart Application of Low-Cost Labor
Scale Up Quickly
Invest in Talent to Sustain Rapid Growth
Source: Bhattacharya, Arindam; Michael, David. “How Local Companies Keep Multinationals at Bay.” Harvard Business Review March 2008: 84 – 95.

Revise Our Firm’s SWOT Strengths Opportunities Weaknesses What flexibility and customer value are we NOT able to deliver because of our approach to standardization and automation? Threats How might national incumbents use labor to deliver custom offerings and flexibility to create customer value that bests our offerings?

Example: China’s Focus Media Source: Bhattacharya, Arindam; Michael, David. “How Local Companies Keep Multinationals at Bay.” Harvard Business Review March 2008: 84 – 95.

Signs Incumbent is Likely to React Vigorously to Market Entrants
Previous vigorously response to market entrants
Has Cash or Credit to Fund Response
Willingness to Price Aggressively to Retain Market Share
Existing Market is Mature
Fixed Costs are A Large Component of Total Cost
Source: Porter, Michael. “The Five Competitive Forces That Shape Strategy.” Harvard Business Review January 2008: 79 – 93.

CI Teams Need Local Insight

谢谢 August Jackson http://www.augustjackson.net august (at) augustjackson.net (Thank You.)

Sources (1 of 2) Alexander, Marcus; Korine, Harry. “When You Shouldn’t Go Global.” Harvard Business Review December 2008: 70 – 77. Bhattacharya, Arindam; Michael, David. “How Local Companies Keep Multinationals at Bay.” Harvard Business Review March 2008: 84 – 95. Brandenberger, Adam M.; Nalebuff, Barry J. “The Right game: Use Game Theory to Shape Strategy.” Harvard Business Review July – August 1995: 33 – 47. Elizondo, Noe; Glitman, Erik. “Common Mistakes in Cross-Border CI.” Competitive Intelligence March – April 2003: 47 – 48. Elizondo, Noe; Glitman, Erik. “Data Collection in China.” Competitive Intelligence May – June 2004: 57 – 58. Elizondo, Noe; Glitman, Erik. “Data Collection- The International Perspective.” Competitive Intelligence July – August 2005: 47 – 48. Fehringer, Dale. “Successfully Managing Multinational CI Projects.” Competitive Intelligence May – June 2008: 34 – 36. Ghemawat, Pankaj. Strategy and the Business Landscape (2nd Edition). Upper Saddle River, NJ; Prentice Hall, 2005.

Sources (2 of 2) Ghemawat, Pankaj; Hout, Thomas. “Tomorrow’s Global Giants Not the Usual Suspects.” Harvard Business Review November 2008: 80 – 88. Knip, Victor. “Culture Counts! Teaching Business Students Why and How to Leverage Cultural Analysis to Optimize Global Macro-Environmental Scanning.” Journal of Competitive Intelligence Management 3.4 (2006): 85 – 110. Konop, Szymon. “Competitive Intelligence in Central Eastern Europe and Russia.” Competitive Intelligence May – June 2008: 31 – 33. Macmillan, Ian; Selden, Larry. “The Incumbent’s Advantage.” Harvard Business Review October 2008: 111 – 121. Porter, Michael. “The Five Competitive Forces That Shape Strategy.” Harvard Business Review January 2008: 79 – 93. Svetozarov, Vladimir. “Competitive Intelligence in Russia: Obstacles and Opportunities.” Competitive Intelligence November – December 2004: 30 – 32. Wilson, Toni. “Information Sources for a Global Economy.” Competitive Intelligence May – June 2008: 49 – 50.

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Anticipating Competitive Threats To Global Growth Strategies

by August Jackson on Jan 27, 2009

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