Professional Documents
Culture Documents
Customer Analysis
Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy Global Marketing Strategy
Multi-Domestic
(National) Market Global Market
Multi-Domestic Global Structures Structures
Structures Structures
INTERdependent Competition:
Independent Competition: United
States Business A
USA
Cross-subsidized national Japan
Competition in each domestic market share battles in pursuit
Mexico
Brazil
market is essentially of global brand & distribution
independent positions Business B
Canada Colombia
Industry is present in many Mexico
Required SCA or volume is not Germany USA
domestic markets available in home market Europe
Many value chain activities Numerous value-chain activities
replicated in each market Business C
decoupled from buyer Saudi
USA
Often independent subsidiary Activities most related to buyer
Arabia
Canada
ownership and management tied to where buyer is
structures/systems located
Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy Global Marketing Strategy
Multi-Domestic Multi-Domestic
(National) Market Global Market (National) Market Global Market
Structures Structures Structures Structures
United United
States Business A States Business A
USA USA
Mexico Japan Mexico Japan
Brazil Brazil
vs. vs.
Business B Business B
Canada Colombia Canada Colombia
Mexico Mexico
Germany USA Germany USA
Europe Europe
Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy Global Marketing Strategy
Multi-Domestic
(National) Market Global Market
Structures MARKET & The Drivers of
Structures
SEGMENT Industry
STRUCTURES Globalization
United
Potential
States Business A
USA
Mexico Japan
Brazil
vs.
Business B INDUSTRY
Canada Colombia COST GOVERNMENT
Mexico
GLOBAL
Germany USA
Europe STRUCTURES POLICY
Business C
POTENTIAL
Suadi
Arabia USA
Canada Supporting &
Facilitating Factors
Knowledge of local Source of Knowledge of vertical
market conditions COMPETITIVE
wins Competitive market, plus firm's
ability to create unique STRUCTURES
Advantage value in vertical, wins
Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy
Global Marketing Strategy
MARKET &
Global segment need(s)
Global customer(s)
The Drivers of Industry
Global scale economies
Steep experience curves SEGMENT Global channels of distribution Globalization Potential
Sourcing efficiencies Transferable marketing
Favorable logistics
STRUCTURES Lead countries
High country-cost differences
High product development costs
Market & Segment Structures
Rapid technology obsolescence
Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy Global Marketing Strategy
Buy in domestic
markets from
foreign suppliers Strong presence of foreign
lo e competitors
r
ba l
Buy in domestic
C u st o m
markets from
domestic Interdependent countries
suppliers
No HQ HQ HQ mandates HQ does the Globalized competitors
involvement recommends specs/products/ purchasing
specs/products/ vendors
vendors High level of multi-lateral
Increasing Globalization trade
Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy Global Marketing Strategy
Speed to Market
Cost Structure Drivers - Printer Development -
Global scale economies
Steep experience curves
Sourcing efficiencies
Favorable logistics IMPACT ON
PROBLEM CUMULATIVE PROFIT
High country-cost differences 30% over-run in development costs -2.3%
Product unit cost goal exceeded by 10% -3.8%
High product development costs Product compatibility problems, 10% sales -3.8%
volume reduction
Rapid technology obsolescence Product quality problems; 10% price reduction -14.9%
Six month delay in product introduction -31.5%
Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy
Global Marketing Strategy Industry Globalization Potential: Computers
Market/Segment,
Competitive
Government Policy Drivers Drivers
Cost Drivers
Gov't Policy
Open trade policies Drivers
Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.
Global Marketing Strategy Global Marketing Strategy
Industry Globalization Potential: OTC Pharmaceuticals Industry Globalization Potential: Civil Aircraft
Market/Segment,
Competitive Drivers
Cost Drivers
Cost Drivers
Gov't Policy
Competitive Drivers
Drivers
Market/Segment
Drivers
Gov't Policy
Drivers
Copyright 2010. Dr. Peter C. Wilton. PROPRIETARY & CONFIDENTIAL. Not to be used, copied, or reproduced without express written permission.