1. Muhammad Waqas Global Competitors Lecture 11

2. Muhammad Waqas Recap Business market Government market

3. Muhammad Waqas Learning Objectives Describe ways in which one global competitor can address another. List and explain four basic strategic options that local firms can employ in the face of competition from multinational firms. Explain how attitudes toward competition have evolved differently in different cultures, and cite examples from both developed and developing countries. Note examples of how home governments can still support the global competitiveness of their firms despite the trend toward trade liberalization. Discuss the major competitors from developing countries— state-owned enterprises and business groups— and explain how they differ from multinational companies. Describe how a firm’s country of origin can help or hurt it in the global marketplace.

4. Muhammad Waqas Chapter Overview The Globalization of Competition Strategic Options for Local Firms Cultural Attitudes toward Competition Home Country Actions and Global Competitiveness Competitors from Emerging Markets The Country-of-Origin Advantage

5. Muhammad Waqas Globalization of Competition Global firm versus global firm Global firm versus local firm

6. Muhammad Waqas Global Competitors Face Off Cross-country subsidization Counter-parry/counter attack Globally coordinated moves Targeting of global competitors

7. Muhammad Waqas Global Firm versus Local Firm Local firms can compete effectively against much larger international companies if they act wisely. Example Ramlosa vs. Perrier

8. Muhammad Waqas Strategies for Local Firms 1.Defender Strategy 2.Extender Strategy 3.Contender Strategy 4.Dodger Strategy

9. Muhammad Waqas Global Firm Buys Local Firm This can upset the local competitive environment – Heinz dominated soy sauce in Indonesia with its ABC brand – Then Unilever bought rival Bango brand – Bango sales surged due to Unilever’s vast distribution system in Indonesia

10. Muhammad Waqas Cultural Attitudes Toward Competition Rules - written and unwritten - of the competitive game vary across countries Is competition good or bad? – U.S. antitrust laws traditionally encourage competition but are focused on the good for the consumer

11. Muhammad Waqas Competition in Emerging Markets Developing countries were traditionally wary of competition Foreign competitors often faced discrimination – Restrictions on imports – Restrictions on FDI

12. Muhammad Waqas Summary The Globalization of Competition Strategic Options for Local Firms Cultural Attitudes toward Competition

13. Muhammad Waqas References Gillespie, K., Jeannet, J.P. and Hennessey, H.D. (2004), Global Marketing: An Interactive Approach, Houghton Mifflin, Boston, NY.