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.
When You Shouldn’t Go Global<br />Marcus Alexander and Harry Korine<br />Harvard Business Review | December 2008<br />Pres...
20th Century Walls<br />Political Walls<br />Trade Walls<br />Transportation Walls<br />Communication Walls<br />
The Walls Come Tumbling Down<br />
The Walls Come Tumbling Down<br />
The Walls Come Tumbling Down<br />
The Walls Come Tumbling Down<br />
Question<br /><ul><li>2 diseases:  Rare and Common
If they’re not treated they are equally severe</li></li></ul><li>Economic Globalization<br />Perceived incentives<br />Sen...
Revlon<br />Revlon’s expansion in Brazil<br />in Brazil, the Camellia flower is for funeral purpose<br />Revlon launched a...
Avoiding Ill-Fated Strategies<br />Are there potential benefits for our company?<br />Do you have the necessary management...
eBay<br />from eBay’s foundation in 1995 they were profitable<br />launched its Japanese site on February 28, 2000<br />Tw...
eBay<br />they hired the wrong person as country manager<br />tried to force Japanese consumers to fit the company’s Ameri...
Globalization’s Siren Song<br />Deregulated Industries (telecom, postal service, utilities) – increased competition in hom...
Vodafone<br /><ul><li>World's largest mobile telecom company measured by revenues and the world's second largest measured ...
Vodafone acquired J-phone in 2001
full range of mobiles with features and styling almost a generation behind those available from the other major carriers
Did not increase investment to catch up
delay in launching accompanying 3G services
Unloaded 98% of its share in 2006</li></li></ul><li>Walmart<br /><ul><li>Retail giant with a tremendous success story
Entered in 1998, exited in 2006
Difference in product preferences
Located outside cities
Do not distinguish between discount and normal prices – no compelling reason
Upcoming SlideShare
Loading in …5
×

When You Shouldnt Go Global Ppt

2,023 views

Published on

Published in: Business, Technology
  • Be the first to comment

When You Shouldnt Go Global Ppt

  1. 1. When You Shouldn’t Go Global<br />Marcus Alexander and Harry Korine<br />Harvard Business Review | December 2008<br />Presented by:<br />Diana Lim<br />2010.09.28<br />
  2. 2. 20th Century Walls<br />Political Walls<br />Trade Walls<br />Transportation Walls<br />Communication Walls<br />
  3. 3. The Walls Come Tumbling Down<br />
  4. 4. The Walls Come Tumbling Down<br />
  5. 5. The Walls Come Tumbling Down<br />
  6. 6. The Walls Come Tumbling Down<br />
  7. 7. Question<br /><ul><li>2 diseases: Rare and Common
  8. 8. If they’re not treated they are equally severe</li></li></ul><li>Economic Globalization<br />Perceived incentives<br />Sense of inevitability<br />Pressure on companies to globalize<br />
  9. 9. Revlon<br />Revlon’s expansion in Brazil<br />in Brazil, the Camellia flower is for funeral purpose<br />Revlon launched a perfume with the aroma of Camellia <br />They need to recall back their product and find other market to sell it<br />Brand name infected, spent extra time, money and effort<br />
  10. 10. Avoiding Ill-Fated Strategies<br />Are there potential benefits for our company?<br />Do you have the necessary management skills?<br />Will the costs outweigh the benefits?<br />eBay’s failure in Japan may well have been prevented with a self-assessment like this<br />
  11. 11. eBay<br />from eBay’s foundation in 1995 they were profitable<br />launched its Japanese site on February 28, 2000<br />Two years later when eBay pulled the plug on its Japanese operations – pulverized by Yahoo! Japan Auctions<br />
  12. 12. eBay<br />they hired the wrong person as country manager<br />tried to force Japanese consumers to fit the company’s American-centric service model<br />made grandiose announcements about their entry into the Japanese market, well before they had a localized product ready to launch in Japan<br />missing the first mover advantage was perhaps eBay’s single biggest blunder<br />
  13. 13. Globalization’s Siren Song<br />Deregulated Industries (telecom, postal service, utilities) – increased competition in home markets and new found freedom<br />Service Industries (retail, banking, insurance) – scale economies and growth beyond home markets<br />Manufacturing Industries (automobiles and communication equipment) – mergers and consolidation in order to survive<br />
  14. 14. Vodafone<br /><ul><li>World's largest mobile telecom company measured by revenues and the world's second largest measured by subscribers
  15. 15. Vodafone acquired J-phone in 2001
  16. 16. full range of mobiles with features and styling almost a generation behind those available from the other major carriers
  17. 17. Did not increase investment to catch up
  18. 18. delay in launching accompanying 3G services
  19. 19. Unloaded 98% of its share in 2006</li></li></ul><li>Walmart<br /><ul><li>Retail giant with a tremendous success story
  20. 20. Entered in 1998, exited in 2006
  21. 21. Difference in product preferences
  22. 22. Located outside cities
  23. 23. Do not distinguish between discount and normal prices – no compelling reason
  24. 24. Visually oriented customers </li></ul>(prefer the department store-like, neat, <br />clean, and sophisticated atmosphere)<br />
  25. 25. Daimler-Benz and Chrysler<br /><ul><li>Daimler-Benz luxury vehicles had captured less than 1% of the American markets.
  26. 26. Chrysler's primary reason for teaming with Daimler-Benz is to extend its international reach</li></ul>“Mercedes was universally perceived as the fancy, special brand, while Chrysler, Dodge, Plymouth and Jeep were the poorer, blue collar relations”<br />-- James Holden, President of Chrysler <br />
  27. 27. The future will be more unpredictable<br />Globalization is getting more complex and this change is getting more rapid. <br />
  28. 28. "I think there is a world market for maybe five computers” <br />Thomas Watson, chairman of IBM, 1943<br />
  29. 29. “Sen. Obama cannot possibly believe, and doesn't even act as if he believes, that he can be elected president of the United States next year.” <br />– Christopher Hitchens, author/journalist, 2007<br />
  30. 30. “Overall risks to the outlook seem less threatening than months ago.” <br />IMF 2007 World Economic Outlook<br />
  31. 31. Ikea<br />first came to Japan in the mid 1970s<br />pulled out of Japan in 1986<br />reopened in 2006<br />“It’s not good enough just to land here and hope that everything is going to work. You need to have everything in place—the whole supply chain, the well-trained workers and an organization that can actually expand and grow.”<br />--Lars Petersson, CEO of IKEA’s Japan operations<br />
  32. 32. Summary<br />Not all globalization strategies are flawed<br />But many have stumbled<br />Great vision, lousy execution<br />Before launching a global move, need to conduct a self-assessment<br />Ensure efforts make strategic sense to avoid disastrous consequences<br />
  33. 33. Summary<br />Is this just a fad that is driven more by “bandwagon” thinking than actual business value?<br />Promoted by analysts, consultants, and media as the only way to succeed?<br />Are we implementing solutions or buzzwords?<br />

×