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Converting Global Presence Into Global Advantage

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Arun Kottolli
Arun Kottolli

The document discusses how global companies can convert their global presence into a competitive advantage. It outlines five opportunities for value creation: adapting to local markets, exploiting economies of scale, exploiting economies of scope, tapping optimal locations, and maximizing knowledge transfer. However, pursuing each opportunity also presents challenges that must be addressed, such as increasing costs, isolation from markets, and overdependence on single locations. The document advocates for systematic analysis and continuous adaptation to local needs in order to successfully leverage a global presence.

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Converting Global Presence into Global Competitive Advantage Arun Kottolli
Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Overview – Gaining advantage ,[object Object],[object Object],[object Object],[object Object]
Case Study - Pepsi ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case Study - Learning ,[object Object],[object Object],Without a disciplined approach, global presence can easily degenerate into a liability that distracts management and wastes resources
Sources of Global Competitive Advantage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Adapt to local markets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Increase Market Share ,[object Object],[object Object],[object Object]
Improved Price Realization ,[object Object],[object Object]
Neutralizing local Competition ,[object Object],[object Object],[object Object]
Challenges in Local Adaptation ,[object Object],[object Object],[object Object],[object Object],[object Object]
Local Adaptation – Self Check ,[object Object],[object Object],[object Object],[object Object]
Exploit economies of global scale ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Challenges in Creating Economies of Scale ,[object Object],[object Object],[object Object]
Challenges in Creating Economies of Scale ,[object Object],[object Object],[object Object],[object Object]
Challenges in Creating Economies of Scale ,[object Object],[object Object],[object Object]
Economies of Scale – Self check ,[object Object],[object Object],[object Object],[object Object],[object Object]
Choosing Location ,[object Object],[object Object],[object Object]
Exploit economies of global scope ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Providing coordinated services ,[object Object],[object Object],[object Object],[object Object]
Increased Market Power ,[object Object],[object Object],[object Object],[object Object]
Challenges to exploiting Economies of Scope ,[object Object],[object Object],[object Object]
Challenges to exploiting Economies of Scope ,[object Object],[object Object],[object Object],[object Object]
Economies of scope – Self Check ,[object Object],[object Object]
Tap optimal locations for activities & resources ,[object Object],[object Object],[object Object]
Choosing Optimal Location ,[object Object],[object Object],[object Object],[object Object],[object Object]
Impact of Location decision ,[object Object],[object Object],[object Object]
Challenges in Choosing Optimal Location ,[object Object],[object Object]
Challenges in Choosing Optimal Location ,[object Object],[object Object],[object Object]
Challenges in Choosing Optimal Location ,[object Object],[object Object],[object Object]
 
Optimal Location – Self Check ,[object Object],[object Object],[object Object]
Maximize knowledge transfer across locations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Examples of Knowledge transfer ,[object Object],[object Object],[object Object]
Challenges to Knowledge transfer ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Challenges to Knowledge transfer ,[object Object],[object Object],[object Object]
Knowledge Transfer – Self Check ,[object Object],[object Object],[object Object],[object Object],[object Object]
Creating Global Competitive advantage ,[object Object],[object Object],[object Object]
Designing Optimal architecture ,[object Object],[object Object],[object Object],[object Object],[object Object]
Designing Optimal architecture ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Designing Optimal architecture ,[object Object],[object Object]
The Star Framework Global Coordination Locational Competencies Activity Architecture A A A F B C D B B C C D D A – Best in Industry (Ideal) B - Above Average (good) C – Industry Average (Satisfactory) D – Below average (Poor) F – Worst in Industry (Totally unacceptable)
Building world class competencies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Ensuring smooth coordination ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Steps to ensure Coordination ,[object Object],[object Object],[object Object],[object Object],[object Object]
Two Step approach to build Global competitive advantage ,[object Object],[object Object],[object Object],[object Object]
Assessment of Global Competitive advantage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Optimal Architecture – for each value chain activity Typical Criteria for assessment Basis for Global Advantage
Assessment of Global Competitive advantage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],World class competencies – By function for each facility. Typical Criteria for assessment Basis for Global Advantage
Assessment of Global Competitive advantage ,[object Object],[object Object],[object Object],[object Object],Frictionless coordination – Between similar activities and between complimentary activities. Typical Criteria for assessment Basis for Global Advantage
Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 

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Converting Global Presence Into Global Advantage

  • 1. Converting Global Presence into Global Competitive Advantage Arun Kottolli
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  • 42. The Star Framework Global Coordination Locational Competencies Activity Architecture A A A F B C D B B C C D D A – Best in Industry (Ideal) B - Above Average (good) C – Industry Average (Satisfactory) D – Below average (Poor) F – Worst in Industry (Totally unacceptable)
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