Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Competing with        GIANTSSurvival Strategies for Local Companies in Emerging                       Markets             ...
Introduction• Barrier’s Fall - Opportunity grows• Consumer Point - More Choices• Local Companies - Death Sentence
Dominant
Foreign Rivals• Financial Resources• Advance Technology• Superior Products• Powerful Brands• Seasoned Marketing and Market...
3 - Ways out• Government• Partner• Sell and Leave
Other Ways Exist• Vist in Russia             Vs          • Compaq• Shanghai Jahwa in China                •Unilever       ...
Aligning Assets withIndustry Characteristics
1980’s• Bajaj                   •Honda                        TechnologyIndependent               Quality   Minded        ...
What Could Bajaj Do?
Closer Look• Honda’s Advantage• Honda’s Customer Base• Scooter Industry • Mature • Stable Industry
What Customers            Wanted   Honda                            Bajaj                                  •Cheap•Sleek de...
What Did Bajaj Do?• No to Partnership• fortify existing competitive assets• beefed up distribution• R&D• Braced for Impact
And So They Came..•Honda with local producer• 11% of Indian Scooter Market•Stabilizes
Impact•Bajaj - 77%•But!!•Honda pulled out in 1998 from Scooter Manufacturing equity joint venture
What Bajaj Taught Us• Every Manager Must ask • How strong pressure to globalize your    industry • How internally transfer...
What It Gives• Strength of your Multinational Rivals• Assess assets effectiveness gives insight
Pressure Of           Globalization  • Spectrum 1 : BIG                       Fixed Costs for developmentSales in         ...
Spectrum 2                   • Demand of Local Consumers   Success         • Relationship With Customer                   ...
Spectrum 3 : Middle       Spectrum• International Sales• Local Preferences
Managers Thinking On     Spectrum• Strength & Weakness• Similar Industries Different Spectrum
Next Step•Spectrum Analysis - DONE•Evaluation of Competing assets•(Strength in home market)
Competitive Asset Of             Bajaj• Local Distribution Network• Government Relationship      Defensive• Products with ...
How can it be     advantages to us• Low Cost Raw Material• Expertise• More Attention • More Common • Transferable assets •...
Strategic Thinking• Transferable Assets• Globalization Pressure
• IF • Globalization Pressure Weak • Non Transferable Assets• Then • Defensive Against MultinationalCOMPANY               ...
• IF  • Globalization Pressure Weak  • Transferable Assets • THEN  • May Succeed in other limited MarketsCOMPANY          ...
• IF  • Globalization pressure strong  • Only home assets • THEN  • Bigger Challenges  • Depend’s on ability to restructur...
• IF    • Transferable Assets   • THEN    • Can Compete at global levelCOMPANY                             CONTENDER
Thank You
Competing with Giants
Upcoming SlideShare
Loading in …5
×

Competing with Giants

1,731 views

Published on

A nascent insight into an HBR article which told about competing with Giant organisations.

Published in: Education
  • Be the first to comment

Competing with Giants

  1. 1. Competing with GIANTSSurvival Strategies for Local Companies in Emerging Markets By Suraj Baliga
  2. 2. Introduction• Barrier’s Fall - Opportunity grows• Consumer Point - More Choices• Local Companies - Death Sentence
  3. 3. Dominant
  4. 4. Foreign Rivals• Financial Resources• Advance Technology• Superior Products• Powerful Brands• Seasoned Marketing and Marketing Skills Survival At Stake!!
  5. 5. 3 - Ways out• Government• Partner• Sell and Leave
  6. 6. Other Ways Exist• Vist in Russia Vs • Compaq• Shanghai Jahwa in China •Unilever Others Jollibee Foods - Phillipines Cemex - Mexico
  7. 7. Aligning Assets withIndustry Characteristics
  8. 8. 1980’s• Bajaj •Honda TechnologyIndependent Quality Minded Brand appealDid not want Success in Thailand and Malaysia
  9. 9. What Could Bajaj Do?
  10. 10. Closer Look• Honda’s Advantage• Honda’s Customer Base• Scooter Industry • Mature • Stable Industry
  11. 11. What Customers Wanted Honda Bajaj •Cheap•Sleek design • Low Cost •Rugged • Durable •Service •Outlets in Machines NetworkMajor Cities •Distribution • Maintenance System
  12. 12. What Did Bajaj Do?• No to Partnership• fortify existing competitive assets• beefed up distribution• R&D• Braced for Impact
  13. 13. And So They Came..•Honda with local producer• 11% of Indian Scooter Market•Stabilizes
  14. 14. Impact•Bajaj - 77%•But!!•Honda pulled out in 1998 from Scooter Manufacturing equity joint venture
  15. 15. What Bajaj Taught Us• Every Manager Must ask • How strong pressure to globalize your industry • How internally transferable are your company’s assets
  16. 16. What It Gives• Strength of your Multinational Rivals• Assess assets effectiveness gives insight
  17. 17. Pressure Of Globalization • Spectrum 1 : BIG Fixed Costs for developmentSales in Capital EquipmentMultipleMarkets Marketing Distribution
  18. 18. Spectrum 2 • Demand of Local Consumers Success • Relationship With Customer • Consumer PreferencesMultinationals • Standardized Products • Transportation Costs
  19. 19. Spectrum 3 : Middle Spectrum• International Sales• Local Preferences
  20. 20. Managers Thinking On Spectrum• Strength & Weakness• Similar Industries Different Spectrum
  21. 21. Next Step•Spectrum Analysis - DONE•Evaluation of Competing assets•(Strength in home market)
  22. 22. Competitive Asset Of Bajaj• Local Distribution Network• Government Relationship Defensive• Products with localization
  23. 23. How can it be advantages to us• Low Cost Raw Material• Expertise• More Attention • More Common • Transferable assets • Market Condition • More Success
  24. 24. Strategic Thinking• Transferable Assets• Globalization Pressure
  25. 25. • IF • Globalization Pressure Weak • Non Transferable Assets• Then • Defensive Against MultinationalCOMPANY DEFENDER
  26. 26. • IF • Globalization Pressure Weak • Transferable Assets • THEN • May Succeed in other limited MarketsCOMPANY EXTENDER
  27. 27. • IF • Globalization pressure strong • Only home assets • THEN • Bigger Challenges • Depend’s on ability to restructure Value ChainCOMPANY DOGER
  28. 28. • IF • Transferable Assets • THEN • Can Compete at global levelCOMPANY CONTENDER
  29. 29. Thank You

×