YIPS-GLOBALIZATION-DRIVERS
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YIPS-GLOBALIZATION-DRIVERS

YIPS-GLOBALIZATION-DRIVERS

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YIPS-GLOBALIZATION-DRIVERS Presentation Transcript

  • 1. 25 May 09 International Business - Yip's Globalisation Drivers
  • 2. Yip’s Globalisation Drivers Team 6 Sachin Arun KA Balaji Swapnil Arobinda
  • 3. 25 May 09 International Business - Yip's Globalisation Drivers International Business Terms
    • International companies : Importers and exporters ; have no investment outside of their home country.
    • Multinational companies : Have investment in other countries ; More focused on adapting their products and service to each local market.
    • Global companies : Have invested and are present in many countries ; They market their products through the use of the same coordinated image/brand in all markets.
    • Transnational companies : More complex organizations. They have invested in foreign operations ; have Decentralized decision-making, R&D and marketing powers to each individual foreign market.
  • 4. 25 May 09 International Business - Yip's Globalisation Drivers Introduction
    • George Yip (1992)
    • To know the degree of Globalisation within an industry, analyse
    • 4 Main Categories of Drivers
    • 1. Market Globalisation Drivers
    • 2. Cost Globalisation Drivers
    • 3. Government Globalisation Drivers
    • 4. Competitive Globalisation Drivers
    Low (Domestic) High (Global)
  • 5. 25 May 09 International Business - Yip's Globalisation Drivers Yip’s Framework Technological Factor Economic & Financial Factor Social & Demographic Factor Political & Legal Factor
  • 6. 25 May 09 International Business - Yip's Globalisation Drivers Market Drivers…
    • Market Globalisation Drivers
    • Customer needs
    • Customers & channels
    • Marketing
    • Leading Countries
    Govt. Globalisation Drivers Cost Globalisation Drivers Competitive Globalisation Drivers
  • 7. 25 May 09 International Business - Yip's Globalisation Drivers Market Globalisation Driver - Strength Low (Domestic) High (Global) Airlines Computers Automobile Soft Drinks FMCG Retail Banking Book Publishing Baked Foods
  • 8. 25 May 09 International Business - Yip's Globalisation Drivers Government Drivers…
    • Market Globalisation Drivers
    • Customer needs
    • Customers & channels
    • Marketing
    • Leading Countries
    • Govt. Globalisation Drivers
    • Trade Policies
    • Technical Standards
    • Marketing Regulations
    • Govt. Owned Competitors
    • Govt. Owned Customers
    • Legal protection
    Cost Globalisation Drivers Competitive Globalisation Drivers
  • 9. 25 May 09 International Business - Yip's Globalisation Drivers Govt. Globalisation Driver : Strength Low (Domestic) High (Global) FMCG Baked Foods Soft Drinks Computers Automobile Pharma Airlines Retail Banking
  • 10. 25 May 09 International Business - Yip's Globalisation Drivers Cost Drivers…
    • Market Globalisation Drivers
    • Customer needs
    • Customers & channels
    • Marketing
    • Leading Countries
    • Govt. Globalisation Drivers
    • Trade Policies
    • Technical Standards
    • Marketing Regulations
    • Govt. Owned Competitors
    • Govt. Owned Customers
    • Host Govt. Concerns
    • Cost Globalisation Drivers
    • Economies of Scale & slope
    • Experience Curve
    • Sourcing & Logistics
    • Country Costs, Productivity & Skills
    • Product Life Cycle & Product Development Costs
    Competitive Globalisation Drivers
  • 11. 25 May 09 International Business - Yip's Globalisation Drivers Cost Globalisation Driver : Strength Low (Domestic) High (Global) Pharma Airlines Computers Automobile FMCG Retail Banking Baked Foods Soft Drinks
  • 12. 25 May 09 International Business - Yip's Globalisation Drivers Competitive Drivers…
    • Market Globalisation Drivers
    • Customer needs
    • Customers & channels
    • Marketing
    • Leading Countries
    • Govt. Globalisation Drivers
    • Trade Policies
    • Technical Standards
    • Marketing Regulations
    • Govt. Owned Competitors
    • Govt. Owned Customers
    • Host Govt. Concerns
    • Cost Globalisation Drivers
    • Economies of Scale & slope
    • Experience Curve
    • Sourcing & Logistics
    • Country Costs, Productivity & Skills
    • Product Life Cycle & Product Development Costs
    • Competitive Globalisation Drivers
    • Exports & Imports
    • Competitors
    • Interdependence of countries
  • 13. 25 May 09 International Business - Yip's Globalisation Drivers Competitive Globalisation Driver - Strength Low (Domestic) High (Global) Airlines Pharma Computers FMCG Automobiles Soft Drinks Retail Banking Baked Foods
  • 14. 25 May 09 International Business - Yip's Globalisation Drivers Advantages
    • Identifies the drivers that are global and those that are local
    • Used to analyse both industry and market
    • Can be mapped onto Porter's Five Forces
    • Changes in drivers indicated by macro environmental analysis
    • Assists in identifying critical success factors for industry and market
  • 15. 25 May 09 International Business - Yip's Globalisation Drivers Case Study – Europe 1992
    • Market Globalisation Drivers
    • Customer needs become more common
    • Birth of large ‘Euro mass’ Segment
    • Customers and channels increase
    • Transferable marketing to become the norm
    • Govt. Globalisation Drivers
    • Trade Policies
      • Eliminate all tariff and non tariff barriers
      • ‘ Mutual Recognition’
    • Subsidies outlawed
    • Technical standards compatible for all industries
    • Government owned Customers to lose their ability to favor national suppliers
  • 16. 25 May 09 International Business - Yip's Globalisation Drivers Case Study – Europe 1992
    • Cost Globalisation Drivers
    • Economic Scale of Europe to increase
    • Experience curve strategies to be more viable
    • ‘ Favorable Logistics’
    • Sourcing efficiency to improve
    • ‘ Difference in country cost’ will become more significant
    • More investment on high cost Product Development
    • Competitive Globalisation Drivers
    • Exports and imports within EC to increase
    • More competitors from different continent
    • Interdependence of countries to improve
    • ‘ Pan European’ Strategy
  • 17. 25 May 09 International Business - Yip's Globalisation Drivers Case Study – Volkswagen
    • Market Globalisation Drivers
    • Growing middle class in developing countries
    • Tie-up with Porsche
    • Govt. Globalisation Drivers
    • Exchange rate variations
    • Interdependence of countries to help in subsiding competitors
    • Cost Globalisation Drivers
    • Relocation of production facility
    • Taking advantage of difference in country costs
    • Huge cost savings
    • Competitive Globalisation Drivers
    • Threat of Entry to increase
    • Increase Rivalry among existing competitors
  • 18. 25 May 09 International Business - Yip's Globalisation Drivers Yip’s Framework & Porter’s Five Force Model Government Drivers Market Drivers Government Drivers Market Drivers Market Drivers Cost Drivers Competitive Drivers Cost drivers Five Forces Model Threat of Entry Threat of Substitutes Power of Buyers / Suppliers Competitive Rivalry Globalisation Drivers
    • Common Customers – Increase
    • Global economies of scale – reduce
    • Global Marketing – Reduces
    • High Production Cost – Reduces
    • Lead Nations – Increases
    • R&D, Innovation – Increases
    • Existence of global customers – Weaken
    • Existence of global suppliers – Counteract
    • Global Customers – Increase
    • Economies of Scale – Increase
    • Global Sourcing – Increase
    • Compatible TS & Favorable Policies - Increase
  • 19. 25 May 09 International Business - Yip's Globalisation Drivers Thank You Industries and markets differ vastly in the extent to which they are globalized - Paint industry is largely globalized; - Advertising and brand names- localized for linguistic and cultural reasons Countries with the most favorable combination of drivers are likely to be chosen as markets and as base by global business Conclusion Baked Foods Automobile Pharma