strategies in the global context

GlobalStrategies in the

Context

POP QUIZ

Identify the visual that follows...

Most recognized and valuable brand

Global?what is

Market

HQ

S

S

S

S

SS

Subsidiaries as markets, ONLY!

Factory

HQ

S

S

S

S

SS

Respond Locally too

Resource Base

HQ

S

S

S

S

SS

Going International

Arbitrage

Make a profit by simultaneously buying and selling an asset at

different prices

AGE Exploration Industrial Network

Nature of Business Trading Manufacturing Processing

Nature of Assets Low Value-Added Tangibles

High Value-Added Tangibles

High Value-Added Intangibles

Value Creation Control of Physical Assets

Physical and Financial Assets

Global resource arbitrage and KM

Organizations TradingIntegrated (Horizontal and Vertical)

Global Networks

Adapted from Global Competitive Advantage in a Networked World by Mohan Sawhney

“”

The Network is the Computer.

advantage

Globalthe

FIRm

HQ

S

S

S

S

SS

Different relationship between each subsidiary and HQ

Different structure at each subsidiary

Different relationship among different subsidiaries

Crystal Ball Gazing

Geographically differentiated networks instead of subsidiaries

1

Each geographical network will have strong market facing capability

2

More reliance on partners for non-core activities

3

Culture, Brand and Processes will be the New Glue!

4

THE PLAYERS

Not Firms butNetworks

THE ARENA

Not Product Markets butFuture Possibilities

THE WINNER

Not Market Share butMarket Influence

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