1. Rational for Going Global

2. Why go Global? Market Focused Capturing New Markets Diversification
Economies of Information
Brand Name Leverage
Homogenization of Consumer Needs
Modern Telecommunication Technology
Global Customer
Global Linkages
GDP as Share of World GDP

3. Why go Global? Competition Focused Preemptive Strike
First - Mover (Dis)Advantage
Learning in Leading Markets
Innovation and Competition
“Companies gain advantage against the world’s best competitors because of pressure and challenge. They benefit from having strong domestic rivals, aggressive home based suppliers, and demanding local customers”
Michael Porter

4. Why go Global? Competition Focused Learning in Leading Markets
“If you are going to be the world’s best furnishing
company, you have to show you can succeed in
America, because there is so much to learn here.”
Goran Carstedt
Head of Marketing IKEA

5. Why go Global? Competition Focused
“Without Coke, Pepsi would have a tough time being an
original and lively competitor…..And on the other side of the fence, I’m sure the folks at Coke would say that nothing contributes as much to the present day success of the Coca-Cola Company than…Pepsi”
Roger Enrico
Ex-CEO of Pepsi Cola

6. Why go Global? Production Focused
Taking Advantage of Differences in Laws and Regulations
Cost Advantages
Economies of Scale
Global Sourcing
Labor Cost
Cost to Protect Environment
Cost to Protect Workers
Taxes
Customs (duties levied by Government
on imported goods)

7. Why go Global? Innovation Focused Knowledge Transfer
Access to Skilled Labor
Learning in Leading Markets
Participating in Economic Clusters

8. Why go Global? Innovation Focused Economic Clusters
Clusters are geographic concentrations of interconnected
companies and institutions in a particular field.
- Clusters increase competition and cooperation
Clusters increase communication between companies and employees. Clusters decrease transaction cost by establishing trust.
Clusters increase productivity. Clusters offer access to skilled labor, local suppliers, and public institutions
Clusters offer a high potential for innovation. Companies in clusters are close to competition, customers, and public institutions. Employees might feel peer pressure.

9. Why go Global? How? Which Country? Which Products/Brands/Services?
- Which Mode of Entry?
- Which Strategy?