Anticipating Competitive Threats to Global Growth Strategies

August Jacksonhttp://www.augustjackson.net

august (at) augustjackson (dot) net

Investors Demand Growth

Yes, Even In This Environment.

Entering New Global Markets is Part of A Growth Strategy

Target Customer Segments to Sidestep Incumbent Competition

Factors of Customer Segmentation

Consumer Markets• Age• Gender• Behavioral Attributes• Income

Business Markets• Vertical Industry• Number of Employees• Distribution of Locations• Size of Locations• Headquarters• Annual Revenue• Purchasing Structure

In which segments can we leverage our strengths?

Incorporate Local Insight Into Five Forces and Game Theory to Anticipate

Competitive Threats

Source: Brandenberger, Adam M.; Nalebuff, Barry J. “The Right game: Use Game Theory to Shape Strategy.” Harvard Business Review July – August 1995: 33 – 47.

6-Part Strategy of Emerging Market Champions’ Success

1. Create Customized Products and Services2. Business Models that Overcome Obstacles3. Deploy the Latest Technology4. Smart Application of Low-Cost Labor5. Scale Up Quickly6. Invest in Talent to Sustain Rapid Growth

Source: Bhattacharya, Arindam; Michael, David. “How Local Companies Keep Multinationals at Bay.” Harvard Business Review March 2008: 84 – 95.

StrengthsStrengths

OpportunitiesOpportunities

Weaknesses

What flexibility and customer value are we NOT able to deliver because of our approach to standardization and automation?

Weaknesses

What flexibility and customer value are we NOT able to deliver because of our approach to standardization and automation?

Threats

How might national incumbents use labor to deliver custom offerings and flexibility to create customer value that bests our offerings?

Threats

How might national incumbents use labor to deliver custom offerings and flexibility to create customer value that bests our offerings?

Revise Our Firm’s SWOT

Example: China’s Focus Media

Source: Bhattacharya, Arindam; Michael, David. “How Local Companies Keep Multinationals at Bay.” Harvard Business Review March 2008: 84 – 95.

Signs Incumbent is Likely to React Vigorously to Market Entrants

• Previous vigorously response to market entrants

• Has Cash or Credit to Fund Response• Willingness to Price Aggressively to Retain

Market Share• Existing Market is Mature• Fixed Costs are A Large Component of Total

CostSource: Porter, Michael. “The Five Competitive Forces That Shape Strategy.” Harvard Business Review January 2008: 79 – 93.

CI Teams Need Local Insight

谢谢August Jackson

http://www.augustjackson.netaugust (at) augustjackson.net

(Thank You.)

Sources (1 of 2)Alexander, Marcus; Korine, Harry. “When You Shouldn’t Go Global.” Harvard Business Review December 2008: 70 – 77.

Bhattacharya, Arindam; Michael, David. “How Local Companies Keep Multinationals at Bay.” Harvard Business Review March 2008: 84 – 95.

Brandenberger, Adam M.; Nalebuff, Barry J. “The Right game: Use Game Theory to Shape Strategy.” Harvard Business Review July – August 1995: 33 – 47.

Elizondo, Noe; Glitman, Erik. “Common Mistakes in Cross-Border CI.” Competitive Intelligence March – April 2003: 47 – 48.

Elizondo, Noe; Glitman, Erik. “Data Collection in China.” Competitive Intelligence May – June 2004: 57 – 58.

Elizondo, Noe; Glitman, Erik. “Data Collection- The International Perspective.” Competitive Intelligence July – August 2005: 47 – 48.

Fehringer, Dale. “Successfully Managing Multinational CI Projects.” Competitive Intelligence May – June 2008: 34 – 36.

Ghemawat, Pankaj. Strategy and the Business Landscape (2nd Edition). Upper Saddle River, NJ; Prentice Hall, 2005.

Sources (2 of 2)Ghemawat, Pankaj; Hout, Thomas. “Tomorrow’s Global Giants Not the Usual Suspects.” Harvard Business Review November 2008: 80 – 88.

Knip, Victor. “Culture Counts! Teaching Business Students Why and How to Leverage Cultural Analysis to Optimize Global Macro-Environmental Scanning.” Journal of Competitive Intelligence Management 3.4 (2006): 85 – 110.

Konop, Szymon. “Competitive Intelligence in Central Eastern Europe and Russia.” Competitive Intelligence May – June 2008: 31 – 33.

Macmillan, Ian; Selden, Larry. “The Incumbent’s Advantage.” Harvard Business Review October 2008: 111 – 121.

Porter, Michael. “The Five Competitive Forces That Shape Strategy.” Harvard Business Review January 2008: 79 – 93.

Svetozarov, Vladimir. “Competitive Intelligence in Russia: Obstacles and Opportunities.” Competitive Intelligence November – December 2004: 30 – 32.

Wilson, Toni. “Information Sources for a Global Economy.” Competitive Intelligence May – June 2008: 49 – 50.