Competitivestrategies:
Globalvs.local?ProfessorDanielF.Spulber1
Globalcompetitivestrategies
TheG5 Platformstrategy NetworkStrategy Intermediarystrategy Entrepreneurstrategy Investmentstrategy2
Home,supplier,partner,andcustomercountriesofcompetitors–differencesassourcesofcompetitiveadvantageDifferencesinglobalvalueconnectionDifferencesinproducts,brand,technologyDifferencesinimpactsofpolitical,legalandregulatoryclimate–tradeagreements,homecountrypoliciesDesignglobalcompetitivestrategiesforcompetitiveadvantageGlobalcompetitivestrategies3
GlobalcompetitivestrategiesCompetitiveadvantagemustberelativetobothglobalandlocalcompetitors:UnileverinUS:Breyers,BenandJerry’s,GoodHumor,Klondike,PopsicleNestléinUS:DreyersThegreaticecreambattle4
GujaratCooperativeMilkMarketingFederation(GCMMF):Indiaslargestfoodproductsmarketingorganization.TwomillionfarmersinthecooperativeSlogan:“AtasteofIndia”PRICE:10rupees(20cents):100milliliterAmulicecreamversus 80milliliterHindustanLeverKwalityWallvanillaicecreamADVERTISINGCOSTS:Amul:1%ofsalesversus HindustanLever:10-15%ofsalesonadvertisingUNILEVERinIndia–KwalityWallHindustanLeverfacessuccessfullocalcompetitor5
Umbrellabrands:
Nestléproductsinthesuper-market.
Someproductscarrybothglobalbrandandlocalbrand.6
GlobalplatformstrategyTheglobalchallenge Globalmarketsize:standardization Localdifferentiation:customizationStrategy:Determinebestcombinationofglobalandlocalactivitiesforcompetitiveadvantage7
Forcescallingforglobalproducts(standardization):ConvergenceincustomerpreferencesandincomeacrosstargetcountrieswitheconomicdevelopmentandtradeCompetitionfromsuccessfulglobalproductsInternationalbrandawarenessCostbenefitsfromstandardizationFallingcostsoftradewithgreaterglobalizationGlobalplatformstrategy8
Forcescallingforlocalproducts(cu