GOING GLOBAL: LESSONS FROM LATE MOVERS
Presented to: Sir. Qaiser Janjua
Presented by :
Ali Bin Hafeez (161032)
Humayun Khan (160161)
INTRODUCTION
Traditional Concept: Big Players always win?
United States, Japan and EU.
Arvind, Denim Supply Business Owner; stock soared on Bombay
Stock Exchange.
Became a victim to fickle demand.
Studied 12 emerging MNC’s, Nature of success is foreign ventures.
Success Stories: Toyota, Sony etc. turned their low cheap quality
image within a decade.
VALUE CURVE
A tool used to differentiate various
market segments.
“ The more profitable a segment the
more sophisticated are the capabilities
needed to compete in it – in R & D,
distribution or marketing.”
RANBAXY’S
Parvinder’s Singh (CEO) capitalized (4% to
6% )
250 million drug to be developed by 2003.
MODEL OF SUCCESS
MNC’s invest in the ability to move up the value curve
i.e. “Khaadi West”.
Late mover advantage? (Ranbaxy venture in China & Russia)
Customer and business contacts established.
Fulfillment of regulatory requirement;
Growing international knowledge.
New resources more capabilities.
Shepherd’s Bush in London.
A (Brick & Mortar) feel of Home (aesthetics)
to people abroad.
STAN SHIH’S CURVE
• In 1989, Acer partnered with Texas
Instrument to produce
semiconductors.
- Sourcing locally.
- Took over supply chain at both ends.
(Higher Margin)
- Manual Labor (Assembly) v/s Internet
Brains (Supply Chain)
-Constantly moving up the value now
pursuing it’s business will drive your next
pursuing the global challenges.
BREAKING OUT OF THE MARGINAL MIND-SET
Barriers to technological and design requirements;
Gap between International standards. (LOCAL DEMANDS: HALT)
Global Potential Unawareness.
No quick solutions to any of these psychological barriers.
(SELF DOUBT)
PUSH FROM HOME
Push from Nest (Korean Giant)
Kun-Hee Lee, Front: Sony & Bang; Second: Panasonic & Toshiba.
Internationalization; Turn around by not investing in quality
finish.
Technologically equipped with competitors.
Thermax; (100% P in domestic)
Committed to Globalization.
6 th Largest producer of boilers. (Abhay Naiwade, MD)
PULL FROM ABROAD
Senior executives; Nurturing young overseas organization
Credibility and Confidence Voice (Transferring Org. Assets, Resources etc.)
NATURA, defended its position in Brazil against Revlon, P& G etc.
Explored the markets in Chile, Peru & Argentina. Vital support and Resources.
(Absorbed by 40 -50% growth).
Ranaxaby gave a seat to a diversified British Executive to successfully
compete in the western market.
STRATEGIES FOR LATE MOVERS
- Strategizing, Analysis of Sales, Service & Channels
- Tailoring Business Model Success (Coke, Cat. etc.)
(ADVANTAGES FOR LATE MOVERS)
- BENCHMARKING & SIDESTEP:
1. Uncertainty and ill equipped to compete in the global market.
2. Jollibee, accustomed to local taste – TAILORED MENU.
3. Took McDonalds (head to head); 1986 – nearby markets.
(Brunei, Guam & Vietnam)
4. Nasi lema- Hong Kong, 1990 – 24 overseas stores in 10 countries.
5. 50% above forecast levels - San Francisco (17 other stores in 18 months, CA)
CONFRONT & CHALLENGE
- Killing the traditions, (BRL Hardy). 2% world.
- 1991- 31 mil to 1998- 178 million in exports
- Supply side: full control sales, distribution and marketing.
(VIABLE GLOBAL BRAND)
-Not only did solve information asymmetry (appellation), negotiations with retail stores.
- Sales up to 200,000 cases in UK & expects to top sales to a million by 2003.
- Gallo in UK & D’isinto from Sicily.
ADAPTABILTY : PROTECT THE PAST
GOAL: MOVING UP THE VALUE CURVE.
Learning intensive market; Tailor Business Plan Accordingly.
PROTECT THE PAST:
Manager at JOLLIBEE to reposition (new menu, slogan, menu etc.).
Faced a loss; Encouraged Innovation.
Mutual learning b/w parent company and overseas subsidiaries
Cross cultural experience; Better organizational development:
1. Openness.
2. Exposure.
3. Experience.
ADAPTABILITY: BUILD THE FUTURE
Entering into strategic partnerships.
Strategic and Cultural Misfits (ASSYMETERY OF INTREST).
VIP INDUSTRIES (Local Partnership along heavy investment led to 60% share
of Debenhams's hard luggage bags.
SAMSONITE: Oyster 2 took away local allegiance.
BRL Hardy’s full time expansion “New business capabilities cannot be
simply installed, must be developed & internalized.”
Christopher Carson (experienced international wine marketer)
CLIMBING UP THE VALUE CURVE
• Leaders commitment to global entrepreneurialism.
• Ranbaxy’s Pravinder Singh ( focus on international research)
• Peter Farell, CEO Resmed (treatment of breathing disorders)
• 1 million out 90 million market
• Substantial growth (Started acting like an MNC, even before they
became one).
“LEADING THE FOLLOWERS OUT OF
ISOLATIONISM”
They
Presented by : “they are crippled by a vision
Ali Bin Hafeez (161032) of themselves as second class
Humayun Khan (160161)
citizens”
- Nelson Mandela
