Competing in global markets
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Competing in Global Markets. Group 3 Vijay Madanu – 17 Ankur Rathi – 37 Vishal Roge – 38 Sachin Shah – 42 Deepak Singh – 47 Nikhil Thadani - 52. Structure. Globalization Factors - Overview Global Strategic Models – Porter & Yip Blue Ocean and Red Ocean Strategy Case Analysis.

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Competing in Global Markets

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Competing in global markets

Competing in Global Markets

Group 3

Vijay Madanu – 17

Ankur Rathi – 37

VishalRoge – 38

Sachin Shah – 42

Deepak Singh – 47

Nikhil Thadani - 52



  • Globalization Factors - Overview

  • Global Strategic Models – Porter & Yip

  • Blue Ocean and Red Ocean Strategy

  • Case Analysis

Forces driving global integration

Forces driving global integration

  • Globalization of Economies – Emerging markets

  • Fierce local competition

  • Syndication of Technology – Manufacturing Efficiency

  • Trade pacts and bilateral ties between economies

  • Conducive business / monetary policies promoting international trade

  • Growing literacy rate

  • Rise in Per capita income

Industry globalization drivers

Industry Globalization Drivers

Market Drivers

Common Customer Needs

Global Customers & Channels

Marketing Mix

Cost Drivers

Global Economies of Scale & Scope

Steep Learning & Experience Curve Effects

Favorable Logistics

Shortening PLC, Rising R&D & Development Costs

Fast Changing Technology

Industry globalization drivers1

Industry Globalization Drivers

Government Drivers

Favorable Trade Policies

Compatible Technical Standards

Common Marketing Regulations

Government as a Customer

Competitive Drivers

Presence of Global Competitors

Presence of Strong Local Competitors

Issues faced

Issues Faced…

  • Government intervention

  • Infrastructure bottlenecks

  • Legal environment

  • Financial Regulations

  • Civil Disturbances

  • Environmental Issues

Advantages of going global

Advantages of going Global

  • Scalability – production, sourcing, R&D

  • Learning from different markets

  • Marketing and Distribution

  • Investor / Consumer Confidence



  • Converting global advantage in to local advantage

  • Enriching experience from local markets to global scale

Essentials of competing in global markets

Essentials of competing in global markets

  • Effectively managing change and transition

  • Cultural diversity

  • Design flexible organizational structures

  • Compliances – Environment, Safety

Key elements for international competition

Key Elements for International Competition

  • Competitive Advantage

    • The set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition.

  • Sustainable Competitive Advantage

    • An advantage that cannot be copied by the competition

International strategy

International Strategy

  • An International Strategy is a strategy through which the firm sells its goods or services outside its domestic market.

  • Reasons for implementing an international strategy

    • International markets yield potential new opportunities

    • To extend a product life cycle

    • To secure needed resources

Opportunities and outcomes of international strategy

Opportunities and Outcomes of International Strategy

Identify International Opportunities

Explore Resources & Capabilities

Use of Core Competence

Strategic Competitiveness Outcomes

Modes of Entry

Increased Market Size

Return on Investment

Economies of Scale and Learning

Advantage in Location

International Business –level Strategy

Multi-domestic Strategy

Global Strategy

Transnational Strategy



Strategic Alliances


Establishment of a new subsidary

Management Problems and Risk

Better Performance


Management Problems and Risk

International strategies

International Strategies

  • International Business-Level Strategy

    • Global cost leadership

    • Global differentiation

    • Global segmentation

  • International Corporate-Level Strategy

    • Global strategy

    • Multi-domestic strategy

    • Transnational strategy

International business level strategy

International Business-Level Strategy

  • Global cost leadership

    • focuses on being the lowest cost producer of a product globally

    • Takes advantage of global economies of scale & high volume sales world-wide

    • Eg: Walmart

  • Global differentiation

    • Create a superior product or change customer perception of the product in order to raise price on a global scale

    • Often the basis of this strategy is a strong brand name

    • Eg: Apple

  • Global segmentation

    • Global version of a focused strategy

    • Can be either be global cost leadership or global differentiation

    • Targets a single segment on a worldwide basis

    • Eg. Zara

Competing in global markets

Global Strategy

Transnational Strategy


Need for Global integration


domestic Strategy




Need for Local Responsiveness

International corporate level strategy

International Corporate-Level Strategy

  • Global strategy

    • Firm offers standardized products across country markets, with competitive strategy being dictated by the head office

    • Emphasizes economies of scale

    • Less responsive to local markets

    • EgCoke, Pepsi

  • Multi-domestic strategy

    • Strategic and operating decisions are decentralized to the strategic business unit in each country

    • Maximizes local responsiveness

    • Eg. Unilever, P&G

  • Transnational strategy

    • Firm seeks to achieve both global efficiency and local responsiveness

    • Eg. Dell

Modes of entry

Modes of Entry

Strategic competitiveness outcomes

Strategic Competitiveness Outcomes

  • International Diversification and returns

    • Greater economies of scale and learning along with greater innovation, help produce above-average returns.

  • International Diversification and innovation

    • Provides larger market to gain more and faster returns from investments in innovation

    • May generate resources necessary to sustain a large-scale R&D program

Risks in international environment

Risks in International Environment

  • Political risk

    • Domestic instability

    • Foreign conflict

    • Protectionism: Tariff, Quota, Subsidy, Cartel

    • Corruption: Bribery, Extortion, Grease payments

  • Economic risk

Porter and multidomesticity

Porter and Multidomesticity

According to Porter, a company is:

Multidomestic if competition in each nation is independent

Global if the competition is global

Basis of global strategies 2 models

Basis of Global Strategies: 2 Models



Porter s global generic strategies

Porter’s Global Generic Strategies

Protected markets

National responsiveness

Global cost leadership

Global differentiation

Global segmentation

Protected markets

Protected Markets

Focusing on competing in countries where that particular government protects or favors the business

National responsiveness

National Responsiveness

Focuses on adapting strategy to each local market

Red and blue ocean strategy

Red and Blue Ocean Strategy

Competing in global markets

Four Action Framework

Competing in global markets

6 principles of Blue Ocean Strategy

Case analysis

Case Analysis

MTV v/s Channel V

Case overview

Case Overview

  • Entered in India via STAR’s satellite feed in 1991

  • Rupert Murdoch acquired STAR in 1993 and MTV parted ways over some commercial disagreements.

  • This led to launch of Channel V

  • MTV launched again in 1995 – focused on youth and common brand image

  • Stiff competition on distribution figures

  • While MTV had a upper hand in attracting advertisers and revenue, Channel V was better off recovering cost by low and smart investment

Launch approach

Launch Approach

  • MTV wasn’t adopting product to local tastes and requirements – Global approach

  • Channel V on other hand went for localization with artists and programming

    • VJ’s

    • Local Artists

Strategic approach

Strategic Approach

  • MTV – Multidomestic

    • Localized content but certain common values that projected the brand in a certain form for consumers ‘MTV Generation’

    • Positioning – Music Channel

    • Global Network

  • Channel V - National Responsiveness Strategy

    • Total localization, positioned themselves differently in each market

    • Changed Positioning in 1999 – Positioned as a youth channel

    • Regional network



  • MTV

    • Focused on roadshows and Dance parties

    • Music entertainment

    • Mass base

  • Channel V

    • Operational liberty (National Responsive Strategy)

    • International Content and music

    • Focused on classes

    • Coke V Live Concert, Music awards with local, national and international artists

    • 10 concerts in two years (97-98)

    • Long term advertising deals



  • MTV

    • Televised Award ceremonies were very important

    • MTV announced Music Honours in association with CCTV – days before Channel V planned event

    • Lack of procedural clearances delayed the project by 3 months

  • Channel V

    • Successful music awards even that got 500 million viewers across Asia / 3 million votes across 20 categories

Strategy reach and distribution

Strategy – reach and distribution

  • MTV

    • Concentrated on Syndication / Fixed slot and claimed more reach amongst the TG

  • Channel V

    • Focused on 24 hour relay of channel through satellite and cable

    • Illegal satellite and cable made it difficult for ad sales

Going beyond

Going beyond

  • With advertising and reach being limited it was necessary for both the channels to move out and compete beyond television audiences

    • Syndication

    • Licensing

    • Merchandising

    • Royalties

Licensing and merchandising

Licensing and Merchandising

  • MTV - Global

    • Globally recognized brand and logo helped in creating tailor made music eg. Unplugged series, MTV Alternate Nation etc

    • Branded Merchandise like clothing, books, backpacks etc

    • MTV branded Pagers

    • Different pricing for different markets – eg. Philippines and Singapore

    • Scores heavily on brand perception over Channel V

  • Channel V – India

    • Albums & T-shirts – more for promotion

    • Kazakhstan – Deal with ALMA TV for beaming it to 50000 homes

    • Poor logo

    • Lack of brand equity as compared to MTV



  • Better operations to reduce over head costs – Channel V overhauled their system to Digital and increased efficiency

  • MTV launched website with Tricast Ltd

    • Allowing video, audio downloads and news updates

    • Chinese Version

    • Plans to monetize inventory

    • Sell merchandise

    • Collect more TG data for sales support

    • 4 times the traffic of Channel V

    • Live Webcast – Billboard Asian Music conference

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