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Basis of Global Strategies: 2 Models: Porter's Yip's

This document discusses two models of global strategies: Porter's model and Yip's model. It defines international business as cross-border and global business as addressing similar customer needs worldwide through integrated and coordinated international activities located for competitive advantage. Yip's framework analyzes four drivers - market, cost, government, competitive - to determine a strategy's global and local elements based on an industry's globalization level.

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125 views6 pages

Basis of Global Strategies: 2 Models: Porter's Yip's

This document discusses two models of global strategies: Porter's model and Yip's model. It defines international business as cross-border and global business as addressing similar customer needs worldwide through integrated and coordinated international activities located for competitive advantage. Yip's framework analyzes four drivers - market, cost, government, competitive - to determine a strategy's global and local elements based on an industry's globalization level.

Uploaded by

abdulbabul
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Basis of Global Strategies: 2 Models

• Porter’s
• Yip’s
International vs. Global
• International – carrying out business across
national borders

• Global
– Customer needs are similar internationally
– Compete in globalized industries
– Locate value-adding activities in places world-wide
where the greatest competitive advantage can be
made
– Integrate and coordinate international activities
between countries
Porter and Multidomesticity

• According to Porter, a company is:


– Multidomestic if competition in each nation
is independent
– Global if the competition is global
Yip’s Framework
• The extent and degree of globalization depends on 4
drivers
– Market drivers
– Cost drivers
– Government drivers
– Competitive drivers

• Each driver should be analyzed for the industry and


market under consideration

• Helps determine which features of a strategy are global,


and which are locally adapted
Yip’s Framework
Market drivers

Industry and Market Government


Cost drivers Globalization drivers

Competitive drivers
Summary of Globalization Drivers
Market drivers Cost drivers
▪ common customer needs ▪ global scale economies
▪ steep experience curve
▪ global customers
▪ sourcing efficiencies
▪ global distribution channels
▪ favorable logistics
▪ transferable marketing
techniques ▪ differences in country costs
▪ a presence in lead countries ▪ high product development costs
▪ rapidly changing technology
Government drivers Competitive drivers
▪ favorable trade policies ▪ high exports and imports
▪ compatible technical standards ▪ competitors from different
▪ common marketing regulations continents
▪ government owned competitors ▪ interdependence of countries
and customers ▪ competitors globalized
▪ host government concerns

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