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6. Global Competitors. Learning Objectives. Describe ways in which one global competitor can address another. - PowerPoint PPT Presentation

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  • 6Global Competitors

  • Learning ObjectivesDescribe 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 firms country of origin can help or hurt it in the global marketplace.

  • Chapter OverviewThe Globalization of CompetitionStrategic Options for Local Firms Cultural Attitudes toward CompetitionHome Country Actions and Global CompetitivenessCompetitors from Emerging MarketsThe Country-of-Origin Advantage

  • Global Competitors Face Off Cross-country subsidizationCounter-parry/counter attackGlobally coordinated movesTargeting of global competitors

  • Global Firm Buys Local FirmThis can upset the local competitive environment Heinz dominated soy sauce in Indonesia with its ABC brandThen Unilever bought rival Bango brandBango sales surged due to Unilevers vast distribution system in Indonesia

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

  • Competition in Emerging MarketsDeveloping countries were traditionally wary of competitionForeign competitors often faced discriminationRestrictions on importsRestrictions on FDI

  • Government Barriers to CompetitionTariffs and restrictions on importsRestrictions on foreign ownership and investmentGovernment control of inputs such as land, power, or waterPermits to start a business

  • Managing Country of Origin PerceptionsProduction may be moved to a country with a positive country-of-origin effect. Key parts can be sourced from such countriesA channel that distributes already accepted complimentary products can be usedA communications campaign designed to strengthen the association between product and country-of-origin can be developed

  • Country of Origin Issues Beyond QualityConsumer EthnocentrismBuyers are disinclined to purchase foreign products because they believe buying imported products results in job losses and hardship at homeConsumer AnimosityBuyers harbor political objections to purchasing products from a specific foreign country

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