John Wiley & Sons, Inc c GLOBAL COMPETITIVE ANALYSIS Chapter Eight

John Wiley & Sons, Inc c Global Competitive Analysis Chapter Eight l Overview l 1. Information Technology and Global Competition l 2. Global Strategy l 3. Global Marketing Strategy l 4. Regionalization of Global Marketing Strategy l 5. Competitive Analysis

John Wiley & Sons, Inc c Overview

John Wiley & Sons, Inc c Information Technology and Global Competition l Real Time Management l On-Line Communication l “Internet” Organization l Faster Product Diffusion l Global Citizenship

John Wiley & Sons, Inc c Global Strategy l Global Industry Exhibit 8-1 Industry Globalization Drivers l Market Globalization Drivers Common Customer Needs Global Customers and Channels Transferable Marketing Lead Countries

John Wiley & Sons, Inc c Global Strategy (cont) l Cost Globalization Drivers Global Economies of Scale and Scope XXXXXX Steep Experience Curve Global Sourcing Efficiencies Favorable Logistics Differences in Country Costs High product Development Costs Fast Changing Technology

John Wiley & Sons, Inc c Global Strategy (cont) l Government Globalization Drivers Favorable Trade Policies Compatible Technical Standards Common Market Regulations Government-Owned Competitors Government-Owned Customers

John Wiley & Sons, Inc c Global Strategy (cont) l Competitive Globalization Drivers High Exports and Imports Competitors from Different Continents and Countries Interdependent Countries Globalized Competitors

John Wiley & Sons, Inc c Global Strategy (cont) l Competitive Structure Exhibit 8-2 Nature of Competitive Industry Structure Industry competitors Potential entrants The bargaining power of suppliers The bargaining power of buyers The threat of substitute products or services

John Wiley & Sons, Inc c Global Strategy (cont) l Hypercompetition Cost and Quality Exhibit 8-3 The Price/Quality Trade-off and the Ultimate Value Point Timing and Know-how Strongholds Financial Resources Interdependency

John Wiley & Sons, Inc c Global Marketing Strategy Exhibit 8-4 Variation in Content and Coverage of Global Marketing l Benefits of Global Marketing Cost Reduction Improved Products and Program Effectiveness Enhanced Customer Preference Increased Competitive Advantage

John Wiley & Sons, Inc c Global Marketing Strategy (cont) l Limits to Global Marketing l Exhibit 8-5 Degree of Standardization of Products in World Markets

John Wiley & Sons, Inc c Regionalization of Global Marketing Strategy l Cross-Subsidization of Markets l Identification of Weak Markets l “Lead Market” Concept

John Wiley & Sons, Inc c Competitive Analysis l Exhibit 8-6 SWOT Analysis