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?

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

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.

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

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.

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

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.