Born Globals

Slide 1: Innovation in Internationalizing Corporate’s Strategy Thorough Analysis on the phenomenon by Laura Premoli

Slide 2: Globalization corresponds to the satellite vision of the globe worked out by the managers of big businesses. […] Seen from above, the Earth seems One: nations, states, borders, orders, people’s humors, races and political regimes, shades without disappear.[….] It is the all-one dream of Platonic philosophers, who have never ceased to evoke it, finally made real. The all-one is the territory of capitalism made real. (Philippe Zarifian) Author of “L’emergence d’un Peuple Monde” edition PUF, mars 1999

Slide 3: The Born Globals phenomenon refers to those specifical firms that “adopt an international or even global approach right from their birth or very shortly thereafter” It’s a new concept that is expected to become a common phenomenon in the future as evolution of the well known “New Venture Internationalization” framework. Internationalization

Slide 5: “Differences between Traditional Firms and Born Globals”

Slide 6: WHY? What are the key factors that can identify the reasons for which some Company can Internationalize their Business?

Slide 7:  Management “A high level of entrepreneurial orientation is said to support the firm’s ability to recognize and create opportunities at an early stage” Managers with a previous background of international strong activity will give to the company a more sure address to its business expansion.

Slide 8:  Products: Strictly important is to invest in products with a short life cycle in order to gain the necessary profit placed in high technology sectors, which can grant to the products unique and hard to imitate characteristics. High Technology sectors are characterized by the necessity of a continued innovation which can protect the products from any imitation and allows the firm to gain higher markup percentage thanks to the incapacity of customers to understand the real cost of implementation.

Slide 9:  Market: Often Born Globals develop in niche markets since the demand for products in the home market is too low to permit the company to expand its business.

Slide 10:  Strategy: The Sales & Marketing dept. use the rolling budgets for advanced marketing strategies such as: ‐ Advanced technology for Sales and Promotion ‐ Customer Value, basing the pricing and multiple marketing channels ‐ Formation of marketing partnerships and strategic alliances ‐ Creativity in marketing actions

Slide 11:  Technology Fundamental for product innovation, for transportation and for communication “High tech is technology that is at the cutting edge—the most advanced technology currently available.”

Slide 12:  Financing The best solution is focusing on a mix of banks’ and external’s financing by granting a re-invest of the net profits in the production / business activity and in R&D field for a constant innovation of the productive assets.

Slide 13:  Network: It is necessary for Born Globals to establish a great Network in which the companies co-operate with suppliers directly, with customers, with their external financers and with their agents/distributors:

Slide 17: Compared to the past –that is to say the background of the previous theories- the market of high-tech products passed through a rapid growth in development within a global market, that saw small and medium companies from different countries, orienting towards channels of distribution that go beyond their national borders. Not all companies are able to proceed with the same enthusiasm through their own development, especially referring to a globalized prospective. The characteristics that identifies how certain companies are more able than others in order to compete at a global level, refer to that specifical period my study took place. The extremely fast changes of market conditions, of operators and of the innovating ability don’t let the researcher to formulate a dissertation valid in the long period.

Slide 18: Laura Premoli http://enjoythemarket.blogspot.com