strategies in the global context
DESCRIPTION
The slide deck that accompanied the hour and a half talk at IMI, New Delhi on March 03, 2010TRANSCRIPT
GlobalStrategies in the
Context
POP QUIZ
Identify the visual that follows...
Most recognized and valuable brand
Global?what is
Market
HQ
S
S
S
S
SS
Subsidiaries as markets, ONLY!
Factory
HQ
S
S
S
S
SS
Respond Locally too
Resource Base
HQ
S
S
S
S
SS
Going International
Arbitrage
Make a profit by simultaneously buying and selling an asset at
different prices
AGE Exploration Industrial Network
Nature of Business Trading Manufacturing Processing
Nature of Assets Low Value-Added Tangibles
High Value-Added Tangibles
High Value-Added Intangibles
Value Creation Control of Physical Assets
Physical and Financial Assets
Global resource arbitrage and KM
Organizations TradingIntegrated (Horizontal and Vertical)
Global Networks
Adapted from Global Competitive Advantage in a Networked World by Mohan Sawhney
“”
The Network is the Computer.
advantage
Globalthe
FIRm
HQ
S
S
S
S
SS
Different relationship between each subsidiary and HQ
Different structure at each subsidiary
Different relationship among different subsidiaries
Crystal Ball Gazing
Geographically differentiated networks instead of subsidiaries
1
Each geographical network will have strong market facing capability
2
More reliance on partners for non-core activities
3
Culture, Brand and Processes will be the New Glue!
4
THE PLAYERS
Not Firms butNetworks
THE ARENA
Not Product Markets butFuture Possibilities
THE WINNER
Not Market Share butMarket Influence
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