DIAGNOSING INDUSTRY GLOBALIZATION POTENTIAL(Excerpts from G. Yip’s Total Global Strategy) Industry globalization drivers are the underlying conditions in each industry that create the potential for using global strategy. Here we will examine each driver in more depth. To achieve the benefits of globalization, the managers of a worldwide business need to recognize when industry conditions provide the opportunity to use global strategy levers. These industry conditions can be grouped in four categories of globalization drivers: market, cost, government, and competitive. Each key industry globalization driver affects the potential use of global strategy levers (global market participation, global products and…show more content…
That is why it is important to understand how industry globalization drivers affect the threat of entry and rivalry among existing competitors.MARKET GLOBALIZATION DRIVERS Market globalization drivers-common customer needs, global customers, global channels, transferable marketing, and lead countries-depend on the nature of customer behavior and the structure of channels of distribution. These drivers affect the use of all five global strategy levers. As illustrated in Exhibit 2-1, different industries have different levels of market globalization drivers. These comparative rankings are approximate only and will also change with time.Common Customer Needs Common customer needs represent the extent to which customers in different countries have the same needs in the product or service category (or the group of products and services) that defines an industry. Many factors affect whether customer needs are similar in different countries. These factors include whether differences in economic development, climate, physical environment, and culture affect needs in the particular product or service category as well as whether the countries are at the same stage of the product life cycle.[?] Common customer needs particularly affect the opportunity to use the global strategy levers of global market participation, global products and services, and global competitive moves. Common needs make it easier to
That is why it is important to understand how industry globalization drivers affect the threat of entry and rivalry among existing competitors.MARKET GLOBALIZATION DRIVERS Market globalization drivers-common customer needs, global customers, global channels, transferable marketing, and lead countries-depend on the nature of customer behavior and the structure of channels of distribution. These drivers affect the use of all five global strategy levers. As illustrated in Exhibit 2-1, different industries have different levels of market globalization drivers. These comparative rankings are approximate only and will also change with time.Common Customer Needs Common customer needs represent the extent to which customers in different countries have the same needs in the product or service category (or the group of products and services) that defines an industry. Many factors affect whether customer needs are similar in different countries. These factors include whether differences in economic development, climate, physical environment, and culture affect needs in the particular product or service category as well as whether the countries are at the same stage of the product life cycle.[?] Common customer needs particularly affect the opportunity to use the global strategy levers of global market participation, global products and services, and global competitive moves. Common needs make it easier to
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Yips Globalization Drivers For Mac Free
2.4 Industry Globalization Drivers. Yip identifies four sets of “industry globalization drivers” that underlie conditions in each industry that create the potential for that industry to become more global and, as a consequence, for the potential viability of a global approach to strategy. 25 May 09 International Business - Yip's Globalisation Drivers 10 Cost Drivers Market Globalisation Drivers. Customer needs. Customers & channels. Marketing. Leading Countries Govt. Globalisation Drivers. Trade Policies. Technical Standards. Marketing Regulations. Govt. Owned Competitors. Govt. Owned Customers. Host Govt. Concerns Cost Globalisation Drivers. Drivers Elements: Explanation: Market Similar Customers needs There is a shift from traditional food habits. The upscale customers in China, who are attracted to the ‘American Style’, hence there is demand for fast food chain to be located globally. (pg 3, para 2) Global customers There is a potential growth of more than 20% annually in China and Mexico (PESTELEconomic). COST GLOBALIZATION DRIVERS Cost Globalization drivers-global scale economies, steep experience effects, sourcing efficiencies, favorable logistics, differences in country costs, high product development costs, and fast-changing technology-depend on the economics of the business. These drivers particularly affect the use of the global activity. Sep 28, 2019 Yip’s Globalization Drivers Globalization “Globalization refers to the development of global or worldwide business activities, competition and markets and the increasing global interdependence of national economies” – Stonehouse et all. 2004 Industry Top 5 seller concentratio n Carbonated Soft Drinks 70% 68% Computer Software 59%.