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Strategies in the


Global              Context
POP QUIZ



Identify the visual that follows...
Most recognized and valuable brand
what is

Global?
Market
S

   S        S

       HQ

   S        S

       S


Subsidiaries as
markets, ONLY!
Factory
S

     S        S

         HQ

     S        S

         S




Respond Locally too
Resource Base
S

     S        S

         HQ

     S        S

         S




Going International
Arbitrage
Make a profit by simultaneously
 buying and selling an asset at
        different prices
AGE         Exploration                 Industrial                        Network


Nature of
                     Trading                Manufacturing                       Processing
Business


                                                 High Value-
                 Low Value-      High Value-
Nature of Assets                                 Added
                 Added Tangibles Added Tangibles
                                                 Intangibles

                                                           Global resource
                 Control of               Physical and
Value Creation                                             arbitrage and
                 Physical Assets          Financial Assets
                                                           KM

                                          Integrated
Organizations    Trading                  (Horizontal and Global Networks
                                          Vertical)

                           Adapted from Global Competitive Advantage in a Networked World by Mohan Sawhney
“
The Network is
the Computer.
    adv anta ge
                  ”
the


GlobalFIRm
Different relationship among
different subsidiaries         S
                                  Different relationship between
        S                         each subsidiary and HQ


                                                      S

                              HQ

                  S                          S


                                     Different structure at each
                              S
                                     subsidiary
Crystal Ball Gazing
1


Geographically differentiated networks
       instead of subsidiaries
2


Each geographical network will have strong
         market facing capability
3


More reliance on partners for non-core
              activities
4


Culture, Brand and Processes will be the New
                   Glue!
THE PLAYERS


    Not Firms
    but
    Networks
THE ARENA


   Not Product Markets
   but
   Future Possibilities
THE WINNER


    Not Market Share
    but
    Market Influence
http://www.linkedin.com/in/mohitchhabra




http://www.slideshare.net/mohitchhabra




http://twitter.com/mohit_chhabra



mohit@knoledge.in

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Strategies In The Global Context