1. Chapter Fourteen Developing New Products for Global Markets

2. Copyright © Houghton Mifflin Company. All rights reserved.14 - 2 Figure 14.1: Global Product Development Strategies

3. Copyright © Houghton Mifflin Company. All rights reserved.14 - 3 Global Product Strategies Analytic Issues: Standardization Versus Adaptation –Product Function, or the Need Satisfied –Conditions of Product Use –Ability to Buy –Advantages of Product Standardization

4. Copyright © Houghton Mifflin Company. All rights reserved.14 - 4 Global Product Strategies (cont’d) Three Strategic Choices: –Extension, Adaptation, Invention

5. Copyright © Houghton Mifflin Company. All rights reserved.14 - 5

6. Copyright © Houghton Mifflin Company. All rights reserved.14 - 6 Global Product Strategies (cont’d) –Strategy One: Product Extension -- Communications Extension –Strategy Two: Product Extension -- Communications Adaptations –Strategy Three: Product Adaptation -- Communications Extension –Strategy Four: Product Adaptation -- Communications Adaptation –Strategy Five: Product Invention

7. Copyright © Houghton Mifflin Company. All rights reserved.14 - 7 Global Product Strategies (cont’d) Global Products

8. Copyright © Houghton Mifflin Company. All rights reserved.14 - 8 Source: Reprinted with permission from the IMD Presentation, “Formulating a Product Strategy,” February, 1997. Copyright © 1997 IMD. Used by permission. Figure 14.2: Selecting Opportunities for Global Products

9. Copyright © Houghton Mifflin Company. All rights reserved.14 - 9 New-Product Development Processes for Global Markets The Organization of Head Office-Sponsored Research and Development Global Lead Markets and Research and Development

10. Copyright © Houghton Mifflin Company. All rights reserved.14 - 10 Source: U.S. Commerce Department. Reprinted from the June, 1990, Issue of Business Week by special permission, copyright © 1990 by the McGraw-Hill Companies, Inc. Figure 14.3: How the United States Stacks Up in a Dozen Emerging Technologies

11. Copyright © Houghton Mifflin Company. All rights reserved.14 - 11 New-Product Development for Global Markets (cont’d) The Role of Foreign Subsidiaries in Research and Development Purchasing Research and Development from Foreign Countries Acquisitions as a Route to New Products

12. Copyright © Houghton Mifflin Company. All rights reserved.14 - 12 New-Product Development for Global Markets (cont’d) The Joint Venture Route to New-Product Development Alliances for New-Product Development The Consortium Approach

13. Copyright © Houghton Mifflin Company. All rights reserved.14 - 13 Globalization of the Product Development Process New Organizational Forms Required Restructuring of the Development Process as a Whole

14. Copyright © Houghton Mifflin Company. All rights reserved.14 - 14 Introducing New Products to Global Markets Concept Tests Test-Marketing Timing of New-Product Introductions Country Selection