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Restricted National Market Scope (b)

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  1. Restricted National Market Scope (b) - national market development over time - sustainability of national strategies - measuring competitive advantage - inter-market comparison - benchmarking*

  2. Sustainability of national strategies move beyond the present position consider underlying dynamic of the market existence of forces toward localization or globalization market convergence or divergence: pendelum (Fig.5.5) Károly Barakonyi - 5

  3. Figure 5.5. The pendulum of change: convergence versus divergence Industry drivers Globalisation Localisation External dynamics make reliance on national strategies more difficult External dynamics assist continuation of national strategies Industry drivers Károly Barakonyi - 5

  4. Industry drivers need to revisited: customers cost country competitors Evaluate the extent of each factors Making an overall assessment; grouping: Product-market demand: variety of customer demand across markets increasing or decreasing? Competitive interdependence: are there significant cost/benefit from supplying more than one market? Use of flexible manufacturing systems or strategic alliance brings benefits becoming pan-national producer? Evaluate past and future industry trends Importance of internal forces! Károly Barakonyi - 5

  5. Globalisation Localisation High Med Low Industry drivers Low Med High Customer drivers Customer requirements Distribution Marketing Cost drivers New product development Scale economies Transport costs Country drivers Trade policies Technical standards Cultural/regulatory barriers Competitive drivers Competitive interdependence Entry of new competitors Overall Károly Barakonyi - 5 Figure 5.6. The framework for indentifying and assessing external industry drivers

  6. Generally: once one competitor has moved in international strategy direction, then others will follow! If local / global forces finaly balanced: • range of companies using mix of strategies • remain as long as underlying dynamics pushing in one direction Károly Barakonyi - 5

  7. Benchmarking: • Continuous search for and application of significantly better practices that lead to superior business performance. • Key elements: • identification of world class performance - quantify performance gap • assessment of the processes which generated this performance - deeper understanding (how it is done) • seeking to apply such processes to our organization • Related to BSC: identify direct drivers • Means of continuous learning about process improvements Károly Barakonyi - 5

  8. 2 1 Determining which processes, practices, methods to measure Develop measurement formats for key management processes 3 Select benchmark candidates 4B 4A Data analysis Measure performance of best in class firm Measure own company performance 5 Specify action plans to ’meet and surpass' 6 Implement and monitor results 7 Continue process by returning to Box 1 Károly Barakonyi - 5 Figure 5.7: The benchmarking process