international marketing management session 13: global portfolio strategy 1
TRANSCRIPT
INTERNATIONAL MARKETING MANAGEMENT
SESSION 13:
GLOBAL PORTFOLIO STRATEGY
1
2
CHANGING MARKET ORIENTATION
PHASE #1 PHASE #2 PHASE #3
domestic countries
firm firm
sub
firm
sub
Country-focused international expansion (e.g. acquisition, local expansion)
Trend to industry consolidation and growth of global competition
Forces towards global market integration
Need to:
re-center direction for growth
Improve coordination across national boundaries
adopt global perspective3
TRIGGERS TO GLOBAL RATIONALIZATION
4
PHASE 3: GLOBAL RATIONALIZATION
world markets
5
PHASE 3: KEY STRATEGIC DECISIONS
Establish Global Portfolio of Countries, Products, Market Segments
Develop Global Marketing Strategy – Broad-Based, Focused, Hybrid
Improve Efficiency of Productionand Logistics
Scale Efficiencies (Tangible and Intangible)
Learning
Transfer of Ideas, Products, Programs, Experience and Know-how (Best Practices)
LEVERAGING: SYNERGIES
6
LEADING
TYPICAL FIRMS IN INTEGRATION PHASE
FIRMTYPE
COMPETITIVETHRUST
STRATEGICIMPERATIVES
Firms targetingglobal segments(Body Shop, Gucci)
Large firms withbroad-based globalstrategies(Ford, IBM, P&G)
Globally focused
Globally integrated
Maintain focus andgrowth
Global restructuring
Strategic flexibility
7
8
Products/Product LinesExisting New
Seg
men
ts/C
ust
om
ers
N
ew
E
xist
ing
Countries
/Reg
ions
Existin
g
New
Stage in Value Chain
Existing
New
GLOBAL MARKET GROWTH DIRECTIONS
9
RE-ENGINEERING THE GLOBAL PORTFOLIO
10
11
12
Mar
ket
Att
ract
iven
ess
low
h
igh
low highCompetitive Strength
Asia
Latin America
Africa
U.S.
Europe
SBU PORTFOLIOS: REGION
13
COMPETITOR ACOMPETITOR A
Mar
ket
Att
ract
iven
ess
Low
Hig
h
Low HighCompetitive Strength
Japan
Argentina
Brazil
China
Germany
France
U.K.
U.S.
COMPETITOR BCOMPETITOR B
Mar
ket
Att
ract
iven
ess
Low
Hig
h
Low HighCompetitive Strength
Japan
S. Korea
Brazil
China
Germany
France
U.K.
U.S.
Hungary
Key Countries Key Countries
FOOD AND BEVERAGE PORTFOLIOS
14
Macro-Economic
Import/Exports Between Countries
Air Traffic
Mail Flows
Communication (media links)
Tourist Flows
Geographic Proximity
Product-Market
Flows of Goods
Common Distributors Retailer Organization
Network of Service Organizations
Gray Markets and Parallel Importation
Presence of Same Competition
Presence of Same Customers
Firm Specific
Family Branding/Corporate Name
Common Production Facilities
Common Suppliers
Shared R&D Expenditure
Shared Warehousing Facilities
Shared Marketing Expenditure
Common Sales force
Shared Distribution Facilities
GEOGRAPHIC MARKET LINKAGES
15
FOOD AND BEVERAGE EXPANSION OPTIONS FOR A COMPANY
16
Growth vs. Mature Markets
Risk Diversification
Geographic Concentration (Market Interconnectedness)
BALANCING THE PORTFOLIO
17
DragonDragon
Low High
GrowthMarkets
MatureMarkets
Market Interconnectedness
TigerTiger
GoatGoatOxOx
BALANCING THE GLOBAL PORTFOLIO
18
Need to chart direction for long-run growth
Importance of balancing growth vs. mature markets
Growing integration of markets impacts expansion choice
IMPLICATIONS